The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-09-22
Mr.. Blaine's Railroad Operations.
Statement of ex Senator Mcdonald Of Ar.
kansas.

Ex-senator Mcdonald of Arkansas, who IL
thoroughly familiar with the history of tbs
Little Rock & Fort Smith railroad, makes tho
following statement in regard to it:
The party working up the plan to revive the
Fort Smith land grant, although it had no
money, was influential enough to push the
matter into favorable notice in Congress. The
Arkansas delegation in Congress was solidlv
pledged to it, while all the Southern men were
naturally fer project which would help their
section.
The bill to renew the grant came up in 1871,
two years after Blaine was elected speaker.
At THAT time there was not one dollar invested In
the enterprise the Little Rock & Fort Smith
Railroad company was organized, and as a
matter OF course, not a single bond or share OF
the stock had been issued. Mcdonald SAYS
that no one ever spoke word to Blaine about
the bill.
Alter the bill was passed, its Arkansas pro.
jectors, who were unable to raise money In
their own state, in order TO avail themselves OF
the land grant, visited Boston to see what
could be done there. In Boston they met
banker by the name of Bates, president Of the
Bank OF Commerce. He took charge OF the
enterprise and brought into it spectators BIZ.
the name of Caldwell and Harrington. Oald-
well soon became the master spirit Of the
scheme. 1t was he who organized the original
company and who flOsted the original bonds
and stock. Caldwell was very extravaganza,
much more than 1t could have borneif It had
been conducted as legitimate, instead Of
speculative enterprise. Caldwell, in pushing
about for a market for his bonds sought the
support OF Adams, the founder of the express
company bearing his nsme. Warren Fisher
was then quite intimate with Adams, and is
was for the sole purpose Of getting at Adams
that Warren Fisher was put into the road. Il
was soon after the organization of the compa-
ny that Caldwell made Mr.. Blaine the agent
for the saiA of the qaonrtiac of fba h..
State OF Maine. He promised him handsome
commission as usual in such enterprisss
Caldwell had known Mr. Blaine, and knew
that he had the confidence of the capitalists Of
his State. Caldwell made such repressnta-
tions OF the value of the road that Mr. Blaina
was induced to place some Of the bonds, and
from this dates all his trouble in selling thoss
bonds. He gave what is unusual, q personal
pledge OF security. Caldwell so overbonded
the road that it was impossible to meet the in-
terest, and the first Mr.. Blaine knew OF this was
the notification from Lot M. Morrill, that the in
terest upon his investment was not being paid.
Then 1t was that Mr. Blaine put his hand 10
his own pocket and began TO make good the
losses which were threatened. This drain
upon his private resources to maintain what
only the most scrupulous could have dictated,
soon embarrassed Mr. Blaine to an sxtraordi-
nary degree. At that time his meaus were
limited ana this failure upon the part of the
road to meet its liabilities meant financial
RUIN. bis letters to Fisher, therefore, Wers
not to Fisher as private individual, but to
Fisher as the chief officer OF the defaulting
road. bow mach Mr.. Blaine actually lost at
the hands OF spectators who handled tina
affairs of this road is not officially known to
Mr.. Mcdonald, but he says he understands
the loss to have been in the neghborhoOd Of
$4,000. Calwell afterward made large sum
of money out of the enterprise. He construco-
ed 20 miles of the road, and then sold control
Of it to Allan q Maryland Of st. Louis so A
to clear for himself $4,000. Allan & Mar.
quand sold the same property In London for
81 100000. Warren Fisher was thrown over
by Caldwell in the end, and he found him
self with nothing in the way of assets Of the
road except Mr.. Blaine's letters begging for
justice from the men who had imposed upon
him. Fisher rightly judged that malevoient
construction might be placed upon them, 90
he has held them for sale to Mr.. Blains's
eDem es when they could injurs the most. Ex.
Senator Mcdonald says that, when the exact
Facts n connection with the case are known.
the public can only sympathize With Mr..
Blaine as victim of shsrpers whom he trust
cd.