The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1886-03-12
ASKED TO EXPLAIN.

In Mondays Pioneer Pres, the follow
ing communication from Mankato ap-
peared, and as will be seen, is signed by
]. T. Williams, Esq. 1t will certainly
be very graceful for the gentlemen in
terested to rise up and explain.
MANKATo, March 4.-To the Editor:
In your issue of March 2, William Camp
bell, candidate for United States mar
shall, makes this admission in an inter-
view: "If buying railroad stock and
selling il made him railroad man, he
would plead guilty to the charge" Is
not this admission fatal? Several years
since parties at st. Cloud, Mankato, Aus
tin and other points interested them
selves in reviving two old territorial
charters for the purpose OF constructing
a railroad from st. Cloud To Austin, via
Mankato. The citizens of those locali-
ties interested themselves in tn" sue
cess Of said road by contributing the
means for a preliminary survey from
ST. Cloud to Austin, in consideration of
which each contributor received GER
tifcate OF stock for each $40 paid. The
amount of said subscription was abou,
=, 900. During this time William Camp
bell, w. A. Officer, w. I. Bonniwell,
Charles 4. Gilman and James III. Baker
were directors of said organization,
James III. Baker being also secretary OF
the same. As we are informed, Mr..
Campbell and the other directors each
subscribed for two shares of stock and
each paid $50 for the same. The said
directors assured the stockholders, from
time TO time, that the road would be
speedily built, and in the summer of
1883 again assured the stockholders that
the road would be constructed that sea-
son from Austin to Mankato If certain
local bonuses were voted. Several
towns did not vote the same, among the
number the town of Mcpherson, which
issued the bonds and placed them in es-
crow. Director Baker and the others
then visited Mankato and stated that
the bonuses were all voted except So
600, and If the citizens of that locality
would guarantee that bonus, an arrange
ment had been completed with GER
tain construction comrany tn build said
road that season. Mankato guaranteed
said bonus. Director Baker and some
of the others further informed the
stock holders at Mankato and vicinity
that the construction company would,
however, insist upon the assignment OF
said company, but would pay the par
ties holding the same the amount they
had paid for the same, and that the di-
rectors had no pecuniary interest i'll said
transfers. Director Baker requested for
convenience sake only, that the holders
Of the stock at Mankato and its vicinity
should have their assignments run to
hin as an individual, and the shares
were so assigned. We are informed
that Tor convenience sake only the other
directors requested that the stock held
III their localities should be assigned to
them rs individuals, and that it was so
done. But all of the assignors under
stood that their assignments to the di-
| rectors as individuals We're solely in
trust, and said assignments not 10 be
delivered over, except 10 some respon-
sIble party after the completion OF the
road.
BY report, before these assignments
were made, the said directors had
agreed to sell and deliver all Of said
stock for an agreed consideration TO a
certain party who advanced to said di.
rectors sufficient funds to purchase said
assignments of stock. After said AS
signnents, 1t Is currently reported that
the stock thus assigned was sold bv said
directors in the year 1883 for SAC, 900 in
cash without any guarantee that one rod
of said load should ever be built. Now,
if report is true, was not $40 900 very
liberal price TO pay to five directors for
the transfer of their individual shares o;
stock, in all ten shares, which cost them
500? Now We are not prepared to say
| that all said directors received their pro
rata share of this $40, 1000, or that all re-
ceived portion of the same. But who
did receive this money? Ii is currently
reported tina: some of the directors now
claim that they bought these assign
ments of stock with their own money,
and for their own individual benefit,
therefore it is no ones business what
they realized out of their investment.
Mr.. Campbell, in his interview in which
he admits the purchase of railroad stock
NAV take this view. But the assigyors
did not so understand il. The stock
holders who assigned to Director Baker
did not assign with that view, as Mr..
Baker we'll knew. Can Mr.. Campbell
give US any light on this matter? Can
he inform Ills how many shares he sold
as his own individual stock? Can he
inform us if the directors when they
,-ansferred said stock for the alleged
$4,000 informed the purchasers that
tDeE Uelu bdlu dSSiSlultulS Us tIuStces
for q solemn trust? Assuming that
everything about this transfer was all
legitimate, would it not be better to have
little daylight thrown on this subject,
and have published the written con-
tract of sale and transfer of this road
which it Is reported Hon. r. b. Lang
don and Hon. X. j.. Frazee were witness
to? 1t is quite a observation-disclosures
of stock by credulous stockholders to
directors in their individual capacity in
trust and for q nominal consideration,
and then a second assignment by the
said directors in their individual capac-
ity for an alleged consideration of 49,
90. We do not charge anything i'm
proper IN the course of said directors;
we only voice the common sentiment OF
the Minnesota valley. Directors Gil
man and Baker, state officers, and who
are aspirants for further political honors
and who pose as men OF unblemished
and spotless regulations, ought to be
heard from, and we hope that with their
fine Italian hand they will show that
these accusations of breach of trust are
thin as air."
Yours truly,
1T. WILLIAMS.