The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1884-09-17

District of Arkansas, IS:
@. w. Huntington ct al, trustees, against
the Little Rock and Fort Smith Railway
Company ct al.-In equity.
The committee appointed under and by
virtue of decree rendered by said writ on the
10Th day of December, 1875, having heard
the claim presented by James G.. Blaine, re-
spectfully submit the following report:
Prior TO the month of December, 1870 the
claimant had induced numerous friends OF
his residing in the State of Maine to buy
large amounts of the first mortgage railroad,
as well as land grant bonds issued by said
Little Rock and Fort Smith Railroad Com
pany. The bonds were bought from Warren
Fisher, Jr., of Boston, who was the con-
tractor for building and equipping the
entire line CT said railroad, with
whom this claimant had, previous to
the aforesaid purchase, numerous business
transactions, and in whom he, as Well as the
business community in general, placed great
confidence as a man of financial strength
and ability, and also Of integrity. While
the claimant was passing through Boston,
on his way from Washington to Augusta,
Me-, in December, 1870, he was informed
that the affairs OF said company were in a
hourishing condition; that the newly elected
officers of the company, who had recently
visited Arkansas for the purpose of investi-
eating into the condition and prospects of
the road, were highly gratified with the
the market by one of the leading and most
trustworthy banking houses in Boston
with a considerable degree of success
in short, that the future outlook was
very encouraging but that to meet pressing
demands it was necessary that the company
should Immediately have more ready money.
2 This claimant accordingly raised
the sum of $4,000, and while passing
through Boston on his return to Washing
ton, in the last of December, at the request
of said Fisher, who was then sick in bed and
with whom said claimant only had short
interview he h1Dded said sum OF f24 900 to
the President of said company. The claim
ant does not remember what kind of a re-
ceipt was given him for the money, nor, in
fact distinctly whether any recent was
given at all. at our request he has made
examination among his papers for the pur-
pose of ascertaining these facts, but reports
that he is unable to find any receipt for this
money. Said Fisher was at that time Deem
ber 1870 the contractor Of said railroad CON-
paDy, and by virtue of his contract was
entitled to receive all the bonds and securi-
ties OF the company. and the company itself
could not dispose of its securities except by
the consent of said Fisher and through him.
1t appears that the President of the company,
IN behalf of the company, kept an account
with Fisher. Said Fisher is
credited in this account as follows: ''De-
cember, 1870. Received of Blaine, ZOO.
And that, during the last of De-
cember, 1870 and early in January, 1871, said
Fisher was charged with sundry payments
amounting to about 100000. The
claimant, however, emphatically states that
this money was not paid by virtue OF any
understanding or agreement previously had
with said Fisher or with the company, by
virtue of which he was to buy or receive
bonds of the company, but that it was
SIMPLY AND PURELY LOAN
Of a mere temporary nature, and to be repaid
as soon as the exigency which created the ne
cessity passed; also, that the loan was made
upon the belief and under the representation
that the company was in the fouishing con-
dition above stated. g lie is impossible
to state for what specific purpose the money
paid by the claimants was applied, but there
can be no doubt that il was for the use of the
company, and to enable Contractor Fisher to
perform the obligations OF his contract. In
other words, the company had the benefit OF
the money, but they were entitled to receive
that benefit without additional cost for the
company had at that time issued to the said
Fisher much larger am mt OF bonds than
he could demand under his contract. OF this
fact, as we'll as the actual condition of af-
fairs, this claimant was ignorant, and
he claims to have paid this money
under q mistake of facts. Such, in brief is
the case OF the claiment, as presented to us.
He does not base his claim upon a legal
foundation, but asserts that under the
powers given US by the aforesaid decree, we
are bound TO consider not merely legal but
also equitable claims, and that the facts as
above stated disclose such strong equities If
his favor as TO call upon US to award him
some compensation. . He offers TO
accept in full settlement and satisfaction
$4,000 in first mortgage bonds of the new
company, upon which interest shall not be-
gin to accrue until January l, 1877.
majority OF the Executive Committee of
the Board OF Directors of the Little Rock
and Fort Smith Railway have been present
on some occasions when We have considered
this claim, and we have submitted the above
proposition to them without intimating
what light we viewed the claim or the
proposition. They have signifed to us that
they should approve an award Civ
ing to said Blaine $4,000 in the first
mortgage bonds of said railway at PSF, with
the coupons due January and July, 1876
cut of before delivery. In view of these
facts, therefore, we recommend to this hon.
orable court that upon the execution by the
said James g. Blaine of release OF all claims
and demands of every name and nature
which he may have at law or equity against
the Little Rock and Fort Smith Railway
Company and the Little Rock and Fort
Smith Railway by reason OF the aforesaid
loan and payment, and upon an assignment
and conveyance to the Little Rock and Fort
Smith Railway of all claims or causes of &C
ton he may have against any other person
or persons in any way growing out of or con-
nected with said loan and payment the
Treasurer of said railway be directed to de-
liver TO the said Blaine S24 600 in first mort
gage bonds of said railway. upon which in
terest shall not begin to accrue un til July !,
1876, all previous coupons and coupons Of
said date to be cut of before delivery.
G. w. HUNTINGToN,
II. a. WHITNEY,
GEORGE RILEY.
Boston, Dec. IL 1875.
On the 50 of April. 1876 Henry @. Cald
well, Judge of the United States District
Court for the Eastern District of Arkansas
confirmed this report, awarding to James G.
Blaine
TWENTY-FIVE THOUSAND DOLLARS
in first mortgage bonds of the Little Rock
and Fort Smith Railway Company, upon
which interest shall not begin to accrue I'M
til July 1, 1876, ali previous coupons and
coupons of said date to be cut Off before de-
livery" and ordered that certified copies OF
the order be transmitted by the Clerk OF the
court to the President of said railway com
pany. 1t will be noted that the committee
award JamesG. Blaine 1924. 900 in first mort
gage bonds of said railway" but the court
confirms and makes the order S25, 900 in first
mortgage bonds.
The Clerk of the United States District
Court of Arkansas writes from Little Rock,
under date of SeDtember L 1891 To the writer