Savannah morning news. [volume] (Savannah) 1868-1887, 1885-08-16

A suit In equity in the Circuit Court
of the United States for the Northern Dis
trict of Florida, brought by Sydney /.
WALES VS.. Florida Railway and Navlga-
tion Company and others, was COM
meuced Thursday. The leading and
prominent facts of the case are substan-
TALLY as follows; In November, 1879, the
railroad company ID. l.. Yulee being then
vice president and acting president,
entered into a contract with Mr.. Wales,
by the terms of which the company
agreed to give Mr.. WALES a certain per-
centage OF all the lands which he cOGld
acquire for the company from the United
States under the act of Congress granting
land TO the State of Florida for railroad
purposes. The reason for employing Mr..
Wales was that the company was threat
ened with the loss of its grant Of lands.
| The General Land Office at WashiD gton
! contended that as the act Of Congress re-
| quired the road TO be completed within
10 years and that time having elapsed,
that all The lands which the company had
not sold reverted to the United States.
One Secretary OF the Interior had so
decided. Such being the perilous sltua-
ton of the company, the latter solicited
the service of MIR. Wales, who, by long
experience, had acquired great tami J.
iarity with the land system OF the United
States and the decisions of the Federal
courts respecting the forfeiture of land
grants. The duty devolyed upon Nj.
Wales under his contract was TO con.
vince the General Land Office and Sec
ertary of the Interior that the land grant
had not become forfeited and could not be
! forfeited without an act Of Congress, and
that the company was still entitled to tie
lands to aid in constructing a road to
Tampa. After prOtracted and continuous
efforts on the part OF Mr.. WALES, the Sec
rotary Of the Interior decided In 1881 that
he was right, that the grant had not be-
come forfeited, aud that the company
was still entitled to the lands. There
upon the Secretary of the Interior or
deTed the lands to be withdrawn from
the market and reserved for the COM
pany.
Under his contract with the company
| Mr.. Wales compensation was wholly
contingent upon success. He WAS enti-
tied TO have certain percentage of the
lands conveyed to him by the company.
and as fast as the railroad was built
| southwark. AS the company could not
acquire absolute title until the road was
constructed by sections OF 20 miles, IL was
the duty OF the company to apply, and the
act Of Congress granting the lands eX-
pressly required that the company should
apply, the lands and the proceeds OF sales
thereof TO the construction and extension
of its road. The appropriation OF the
lands or their proceeds for any other pur-
pose wns q fraud upon the public and
especially upon Mr.. WALES, who had
rendered his services upon a contingent
contract, as the company could not con-
Vey to him until il had acquired title
Itself by constructing the road. Through
Mr.. Wales services and the expenditure
of large sums of money on his part, the
company has acquired under the grant
large bodies of land, tO-wit, about 400, 900
acres, and would acquire by the compile
ton of its road to Tampa about POO. 900
acres more. Mr.. Wales claims and
insists that if the lands and their pro-
ceeds and the money raised on the credit
Of those lands had been faithfully ap-
piled to the construction of the road it
could have been completed to Tampa be-
fore now.
In the spring of 1884, the company being
satisfied that Mr. Wales experience and
services bad been of great value TO it,
elected him Commissioner OF Lands,
whose duties We're to sell the lands. In
May Of the latter year, Mr.. WALES opened
an office in Jacksonville and has since
sold land OF the company. the proceeds Of
which amount to about $200,00
About the time OF Mr. WALES employ
ment as Land Commissioner, it came 10
his knowledge for the first time that the
company had conveyed to one Edward n.
DickersOn, OF New York, all the lands it
had acquired from the government; ana
that this conveyance had been made to
secure To Mr.. Dickerson the payment OF
several hundred thousand dollars without
any knowledge on the part OF Mr.. Wnlles
and without conveying TO him his share
Of the lands under his contract. How
the company became indebted TO DIR.
Na..N~a -. n
Wales does not know, but says he Is In
formed and believes that it was for capital
stock which DickersOn and others held
In the company and had sold To somebody
to whom IL II not known. As sales Of
land were made through the Office of
the Land Commissioner II was discOv-
cred that large portions Of the proceeds
were paid TO Mr.. Dckers0n, instead of
being applied 10 the building Of tie road.
About the month OF May, 1894, Mr..
DickersOn Te-cOnveYed 10 the company all
Of its lands south OF Panasohkre to aid in
construction OF the road, Mr.. DickersOn
retaining enough for his protection.
About the middle OF last month Mr..
Wales discovered that the company had
conveyed to one j. Augustus johnson. OF
Connecticut, about all OF its land south OF
Notwithstanding IN all about 00,-
900 acres. This conveyance was made 10
Johnson In trust 10 secure the payment OF
$4,000 which the company borrowed on
the credit Of these lands. This $40, 900
was applied 10 the payment Of several
years arrears Of taxes due the State--in-
stead Of being applied TO build the road,
as 1t should have been.
This was n clear diversion Of trust
funds la violation OF law and Of the CON-
pany's contract with Sir. Wales. This
conveyance 10 johnson WAS made with.
out consulting Mr. Wales, or without
conveying TO him his share Of the lands
As soon as Mr.. Wales learned OF this
conveyance he sent II. Bisbee) as bis at
torney, 20 New York FOR the purpose Of
effectlng IA settlement by arbitration or
otherwise. In this condition OF affairs
Mr.. Wales, being wholly unprotected
and threatened with Toes OF all his rights
title 10 the lands having been conveyed
10 citizens of New York and Connecticut
has sought bis remedy in the Federal
courts. II he succeeds IN compelling a
restoration ~ the several hundred thou
sands dollars which have been diverted
70 other purpose and their application
~ the construction Of the road 20
Tampa, he will have accomplished a great
public benefit, apart from any benefits 70
himself
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