Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1885-01-15
NAlNk IIiSPATCHES.
GOV. COBURN'S BIG LOSSES
me S'oo'ooO that He Invested in q
western Railroad Scheme-The Ex.
ecutors Hope to Get 100000
OF It-What the Scheme
Was.
SKOwHEGAN, Jan. |

SKowHEGAN, JAN IA
In his old age, ex-Gov. Coburn made one
very unfortunate investment, and man who
had been cautious and successful all his life
was caught
Inc scheme was the Topeka, Salina e.
western Railroad This was big concern
at least. on paper. 1t was foated by a
Boston man. Early in 1888 this man an
nounced that syndicate of Boston and New
York capitalists had been formed for the
purpose of aiding the construction of the
Topeka, Salina & Western Railroad, of Kan.
sas; that the money subscribed had been
fully paid in and the work would be pushed
forward with all possible speed.
He represented that the syndicate was com
posed of eleven gentlemen of high character
and business prominence. The prospectus OF
the railroad stated that it was Organized to
give railroad facilities to the people of Shaw.
nee, Wobunsee, Morris, Dickinson, Salina.
Lincoln and Osborn counties, and was to run
from Topeka to Delhi, distance of 12S
miles. The resources of Kansas were paint
ed IN bright colors, and it was stated that the
line of the Topeka, Salina & Western road
passed through the choisest districts of the
State, (which were entirely without railroad
facilities, although the population of the
counties through which it passed, numbered
in 1881, l25,000 The prospects for busi-
ness were said to be enormous-not to be
developed, but already waiting and hungry
for this railroad
The company the man had a corporation
with all its machinery organized offered for
sale at per cent forty year bonds, issued at
the alleged rate of $4,000 a mile and its
stock issued at the rate of S25 10000 mile.
The terms offered were: For $3.50 and ac-
crued interest from Jan. l, 1888, five shares
of stock of the par value of 500 each and
$1,000 bond the latter bearing interest from
Jan. 3, 1888. 1t was artfully stated in cir
cular issued in May, 1888, that the price of
this stuff would be advanced as the building
of the road progressed
The protector figured in this scheme as the
principal contractor" He was the only man
whose name appears in connection with it.
He negotiated the sale of the "securities'
and managed the whole scheme. He came to
Maine and called upon many of our capital
lists. He visited Skowhegan and interviewed
the late Ex-Governor. He had an elegant
suite of rooms in Boston and apparently did
business on large scale. He impressed the
Ex-Governor favorably. He rained pamph-
lets, maps and prospectuses upon him. Among
them was book, full of tables, showing the
acres, product and value of all field crops,
and number of each township tributary to the
road. 1t was IA carefully and skillfully made
scheme.
But with characteristic caution, the ex-
| - 70 on
terprise, before going in. He was a man
in whom the Ex-Governor had conf
dence. He reported favorably. He failed
to see the weak points. Acting upon his
advice. the Ex-Governor went in. He paid
$500. 900 into the stock and bonds of the
Topeka, Salina & Western Railroad.
Gen. r. b. Sheperd one of the ex-Gov'
ernors executors, says that the S560,00O
which the protector succeeded in getting out
of the Ex-Governor, was paid in as many as
twenty installments-by check made paya-
BILE to the protector and running from $50,
900 to S64 900 each. Nobody knows where
this money went. The protector cut wide
swath in Skowhegan. He flung around fees
like prince. The hotel walters and porters
got piece of silver every time they waited
| on him. When he paid for small article
he never wanted any change.
! Three or four weeks ago the ex-Governor
sent Hon. f. F. Webb, bis legal adviser, to
! investigate He came back week ago last
| Thursday and reported very untavorable-ln
short the Ex-Governor had lost heavily. That
| NIGHT the Ex-Governor had a chill, and from
that moment he never rallied. Gen. Shep'
herd thinks the mortifi cation at having been
swiodled. hastened his death. The execu
tors think they may get 100000 out OF the
property.
II is said that only eleven miles of the road
has been built, and there is very remote
contingency of its ever being the great loi
mile line that it was pictured. The invest
meut. as has been said, is not dead loss
however. The securietes represent some
thing and have some value, more than the
| executors at first supposed
If the Ex-Governor had consulted more
freely, it might have been better, as he hao
friends in Skowhegan who could have open
ed his eyes; but he said nothing to them in
this his habitat reticence was illustrated.
Mr.. Coburn is not the only man whom tne
scbemer struck in this State. The man solu
blocks of his securities to several other Maine
CAPITALISTS. One gentleman had HIM arrested
and recovered his money.
The above is the history of the only Tran
saction in which the Governor has lost OF
large sum. He made small losses ana un'
fortunate specuations, but no more than ms
share. He sold tract of timber land Ie"
wears ago for $500, 900. If he had kept IT.
this ,,roperty might be sold for S35O,OOo, TO-
dav. The ex-Governor's western tlmoei
lands are very valuable, but their worth can
only be reached approximately.