The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1886-04-30


services as directors. than to secure proper
guarantees that the road should be built. We
further find, that when Director Henry Foster
and some of the other directors were induced
to resign their positions as directors, that their
| designations wore made on the distinct under
standing that all of said directors should, at the
| same time, tender their designations. That
| the conduct of Henry Foster as director was
honorable in every particular, and that no is
deserving of the thanks Of this community for
| his many years of work and large expenditure
OF money I'm behalf of this road, for which he
has received no compensation whatever. That
we further find that the request for the resig-
| nation Of Henry Foster, as a director, was not
| made in good faith, but with view of reduc-
ing the number OF directors so that q less num-
Der would share the proceeds received in such
| transfer. In the language of Director Gilman,
I'VE had to draw the line somewhere" We
further find that when the resignation of Hon.
ry Foster was demanded I'm bad faith, that d.
rectors Baker, Gilman, Campbell and officer,
were present, acQuiescing I'm the pretended
reasons given by Director Baker as tho neces-
sity of said resignation. Although they all
promised to resign simultaneously with the
said Foster, it appears they did not so resign.
but remained vigorously on deck as directors
u
goods of said transfer had been distributed.
From tho evidence before the committee. IL
appears that Directors Campbell and Officer
publicly expressed their anxiety shat there
would be devil of a kick when the people
came to know along the line or the road about
the sale that they had made" If everything
was legitimate about this transfer, we can see
no good reason why the said directors should
decline to make this a statement in detail to
the original stockholders of the whole matter
OF this transfer. Setting forth among other
things the amount of money received on this
said transfer, the disposition of the same, and
the guarantee exacted, If any. that said road
would be built SO far, the only report receiv-
ed, is, in effect, 1.-THE fool and his money are
soon parted" We further find that the minor
ity report of said legislative committee con-
clusively shows that Director Campbell de-
clined to answer the questions put TO him by
the chairman of the committee as TO the
amount he received at the time Of said trans
| fer, and your committee are Informed that at
| a recent meeting held by The citizens OF Aus
tin, Mimi, on this matter of the transfer that
directors Officer and Page both refused to dis
close how much they received on this transfer.
We arc at loss to understand this sudden diff
fidence. From an examination Of all the evil
dence before us, we arc forced ito the conolu-
sion that q cloud of huge proportions, almost
a cyclone rests on the reputation of Directors
Campbell, Baker. Gilman and Officer, in the
matter of this transfer. How far Director
Page should share In the above condemnation,
we are not prepared to state We think that
the purity of the public service requires that
VIM. NJ. Campbell should not be confirmed by
the United States Senate as Marshal for this
State until he satisfactorily clears up his con-
nection with the questionable transaction of
this transfer. That your committee are of the
opinion that in case it can he proved that the
Railway Improvement Company knew that Di-
rectors Campbell, Baker. Gilman, O1icer and
Page held said stock solely in fiduciary ca
pacity, that a suit can be properly maintained
against said company for the surrender Of said
stock and the franchises of said road to the
original stockholders. That II said Railway
Improvement Company were ignorant of the
relationship which said directors bore to the
stockholders in this transfer, but bought the
said stock in good faith, that then suit can be
properly maintained against said directors for
the consideration received on said transfer.
But, with the limited light we have now on the
subject. we do not at the present time, recon-
mend any legal proceedings in this matter but
| may hereafter. All of which is respectfully
JOHN N HALL,
Chairman of Special Committee of Investiga-
| ton, of Nankato Board of Trade. In the mat
ter OF st. Cloud, Austin & Mankato Railroad
Mankato, April 10th, 1886.
MR.. W. NJ. CAMPBELL's STATEMENT.
WASHINGTON. d, c., March q, sc.
To the Board of Trade, Mankato, Mimi.
Gentlemen:-l see by Tuesdays Pioneer Press,
that your board of trade have adopted reso-
| buttons for an investigation in the matter of
the st. Cloud, Mankato and Austin Railroad.
shall be very much gratifed If when this
investigation is entered upon, II may be con-
fined to what is legitimate and proper in the
premises, sand with an honest purpose to do
justice to all concerned and not be permitted
to be governed by those who have jealous or
malicious motives to serve, While from my
past experience with some of those who are
moving in this matter, have no doubt that
one of the objects of the present movement is
to prejudice, if possible, the U. s. senate
against my confirmation for U. s. marshal
which is now pending, as well as to make
political capital to be used in other directions.
Yet be this as it may, court rather than fear
any fair investigation of my conduct in re-
can possibly be any dispute. In the first
place assert that the honest purpose and
firm belief of the directors named, as well as
the others not named, when they arranged
with and assigned their stock to the Railway
Improvement Company of North America
OF New York, was the building of the road,
and to this fact answering for myself under
oath, / testified before the legislative commit
tee of the last house of representatives which
committee had been appointed at the instance
and request Of one of your citizens, then
member of the house, and of which he was the
chairman; and although in this matter he
showed a zeal worthy OF much better cause,
| he did not succeed in securing single wit
ness which he could place on the stand, not
word, not syllable, not a letter nor a line
| from any one of the alleged numerous wrong
| cd and deceived individuals said to be found
| along the line of the proposed road; not
scntilla of evidence did his diligence and
perseverance produce to show an iota of
wrong doing on the part of any of the direct
ors complained of. Your aboard of trade
| cannot show what the legislative committee
could not show, for in truth and In fact no
evidence is IN existence that can show 1t and
for the best of all possible reasons, that no
wrong was ever committed or intended. But
| even III IL were true (WHICH cdunOt OciicNeb
that any Of your people assigned their stock
| under any Misrepresentation or misapprehen-
| sion, surely none of thes- will say was u
party to it. none of them ever assigned any
| stock to me either as a director, or as an in
dividual, or as an associate of other directors
| or persons, or otherwise. did no business
| with them or for them, except that by invita-
| ton. i addressed public meeting I'm your
city at which several of your public men also
spoke, the purpose of VIII ich was to secure aid
| to be extended to encourage the construction
of the road. Do any of your people really be-
| lieve that we engaged in the very laborious
and disagreeable task of securing bonuses to
| induce the building of a railroad, which aid
| was not to be delivered, but placed I'm escrow
| until the road should be completed, IL we did
not honestly believe it was to be built, or 10 it
| was not our purpose and expectations that II
was to be built as a result of our efforts and
| arrangements2 l do not believe that any hon.
est, sane man who will give this matter fair
and intelligent consideration can come to any
such conclusion neither was the possession
of the stock, which was In the hands of the
people along the proposed line of road, neces-
sary for the purposes Of the transfer in ques-
ton, for the directors at all times owned and
controlled within themselves enough stock
for that purpose, The object of the directors
In giving notice of the arrangements they had
made and I'm affording all who held any of tho
stock an opportunity to assign IL, and to re-
ceive back their money which they had in
vested In II, was In pursuance of an express
understanding had at the time the stock was
first offered, that In case We succeed with the