St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1886-04-27

Every dollar OF it was so returned, and in no
| case YVES the return refused, but quickly and
| gladly taken back and all obligation Cancelled.
| Far less did Maukato take OF this stock than
any other city On the line. 1t was raised with
more difficulty and taken back with intense
! satisfaction. This meager stock did not pay
! the expenses incurred in surveys, and we,
! the accused, paid them out of our own pockets
and began Il series OF debts which have hung
| heavy over the enterprise. Again, it was un-
derstood and represented that any and all
stock so taken was to be turned over and as
signed TO any road or company agreeing TO
build the road, the party receiving back its
cost. No company in the world would have
offered TO build such road on any other
terms. The company and the only company
ever Offering to build the line refused to have
anything TO do with it on any other terms
except they could control the stock.
The stock was therefore turned over to them
Tor the sole ana exclusive purpose OF securing
the only Chance ever offered of building the
road. We were compelled 10 accept the terms
or abandon all hope of building the line.
They showed their good faith by proposing 10
pay all the stockholders in full and all the
debts which hung over the enterprise. This
they did and it was an evidence of good faith
l myself asked for some further security, but
this was refused point blank, because they
said the enterprise was not of sufficient value
in any or its aspects to warrant any change
i'll the offer made. Had we failed to accept
the very men who have denounced us for
what we did would have denounced us with
ten-fold severity for what we did not. For
these men are sworn TO be unhappy.
THE CONTROL OF THE STOCK.
Let it be fully understood that the old di-
rectoIs st all times, after the final consolida-
ton OF the lines, owned and controlled enough
OF this stock to make much more than Il ma
jority. The sale could have at any time been
erected without the least reference TO Man
kato or any other local interest. Mr.. Officer
alone owned more than twice the stock of all
Manksto combined. So with other directors
Who could have dictated to them when and
10 whom they should sell their property?
They nad bought ii and paid for it, and it was
theirs. RailroGd property is always trans
Ierabie by the power of majority. 1t was
simple act of good faith, in pursuance with
the original agreement, that the local stock
was taken up and paid dollar for dollar.
Otherwise it would not to-day. or ever bave
been, worth single bawbee to those holders.
For the stock has been ruined by these con-
slant and insidious attacks.
ANOTHER LIE DISPOSED OF
Next in the list of this series of false accu-
sations is the statement that the assignment
OF local stock was made TO the old directors
Individually; that in Mankato they aver to
me personally, aud in other towns to other
directors individually. This is an unqualified
falsehood. 1t is the invention of stupidity
and ignorance. / here produce the certificate
OF the secretary of the company. in whose
possession ali these documents have been
from the beginning, showing the total un-
truth Of this charge:
st. Paul, April "a, 15S6-Gen. ]. H Baker: Sir:
have in my possession all the original certificates
OF stock issued by the st. Cloud Mankato q Austin
Railroad company, and L hereby certify that they
were transferred directly TO the Railway Improve
ment Company of North America and not to any
intermediate parties in trust or otherwise.
5. B. MCCONNELL.
Secretary st. Cloud, Aaukato & Austin Railroad
Company.
There is the indisputable testimony. being
purely official. They were transferred from
original hands directly to the Improvement
company on the basis Of the understanding
had and maintained in good faith that when
an offer was made and accepted they should
so go. They were never given in trust to any
one. Any such fraud was wholly unneces-
sary, if desired, for the directors held in their
own possession and control a majority of the
entire stock. Any act / ever performed in
connection with any of this stock except my
own, was mere perfunctory one as secIe-
tary, purely Official and under such orders as
the board gave. In no case was stock as
signed to individual members of the directory
1t was not necessary for any purpose what
ever. The
CONSIDERATION AND WHAT BECAME OF 1T
The consideration for this stock and fran
chises, some value to which had been created
solely by the personal efforts and money of
the parties hero arraigned, has always been
incorrectly stated, being less as is shown by
the vouchers. The consideration was a sum
Of money TO be determined by the aggregate
indebtedness and obligations which hung
over the road / was not member of the
auditing committee, but know that the dis
position Of tnst fund went first, in all good
faith, to pay the original stockholders, as had
been agreed, all receiving equally and alike.
which made something over $1,000. Next il
went to the payment Of large amount of mis-
cellaneouS Indebtedness of all kinds. some of
which had run through four years of effort.
Much more was paid out in this city than was
ever received from II. The stock was all paid
back, and hotel livery bills, printing, and
long list OF items, beside unadjusted survey
ing bills, were paid Next large part was
set aside to raise bonuses, as agreed. The
! vouchers Tor these items alone reached, l
think, nearly $4,000. All the expenses, the
elections through long line of townships,
municipalities, for 200 miles, with printing of
bonds, etc, etc. were all paid out of this
fund. Then there were heavy attorneys S
fees in the matter of consultations and other
careful work, a single item of which was
$4,000, if 1 correctly remember. And thus
the sum melted away in the discharge of OBJ
legations necessarily incurred, most of which
had become personal on the old directors, but
had to be met. That any money was unjustIy
made out of the transaction is
AN ATROCIOUS FALSEHOOD.
frankly state that the compensation to come
to those who alone gave the enterprise their
time, labor and money, was wholly dependant
upon the building of this road. Had the road
been built as agreed, those men who carried
1t through and baZarded their efforts and
money would have had reasonable compen-
sation for their time and labor. They were
entitled to it by every law, moral and legal
As it is the road is unbuilt and they are unre-
warded. For myself, as secretary, gave this
enterprise nearly four years of constant and
fro 1nl IL. -
miles, visiting New York and Chicago often.
and other distant points. Twas present, by re-
quest of the board, during a large part of three
sessions of the legislature. ] attended more
than seventy meetings of the board at points
distant from my home. i was constantly in
curing heavy expenses incident to nv Official
business, all Of which was justly due me. As
secretary | was entitled to some compensa-
ton. Never before did 1 work so much for so
little. These are the naked facts. When /
add to this the treatment have received for
well-meant efforts, it is the most beggarly in
vestment of my life.
THE LATEST CHARGE AND THE ANSWER.
But new charge has recently developed it.
self. 1t is alleged that the Construction
Company of North America, having failed TO
build the road, transferred back to the
original directors the stock which they had
received; that then the original directors
instead of giving the original stockholders
the opportunity to take the stock again.
resold the franchises to a prominent railroad
man in st. Paul, who represented interests
hostile to the building OF the line. OF all the
lies yet invented, this is the widest and most
malicious / solemnly affirm, that so far as
know there is not syllable of truth in this
fresh accusation. 1t is a lie bold and simple
Not one of the old directors, TO my knowl-
edge, ever engaged, directly or Indirectly, in
such scheme. / never heard such a SUBJ
ject broached till / saw it in print from a
noted political hummer. I Immediately went
TO the president of the road, Gen. Bishop, and
| asked him if any stock had been, since the
original transaction, transferred, or if there