St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-04-05
MINNEAPOLIS & PACIFFIC
Being Investigated With Lots of
Fun by a House Committee.

MINNEAPOLIS d PACIFF1C
Being Investigated With Lots of
Fun by House Committee.
The special house committee ap-
pointed to investigate the alleged wat
ering of stock by certain railroads in
the state. had before it last evening,
Thomas Lowry, Fred d. Underwood.
and Judge Springer, of the Sault Ste.
Marie road. The bulk of the time was
spent in pleasantly. Mr.. Underwood
boldly challenged Mr.. Lowry to match
him for dollar. Mr.. Lowry accepted
and lost. Flushed with his success, Mr..
Underwood made another set-to at
Thomas and lost. He then induced
Judge Springer to change five"
which he as promptly lost. John Ives
came in just then and suggested that the
committee not meet until IL o'clock.
Mr.. Lowry-But we desire to go home
at IL 80.
Mr.. Ives-What's the matter with
staying in st. Paul?
Mr.. Lowry-Send for orr night shirts.
Mr.. lves-We will furnish you night
shirts.
Mr.. Flynn urged that the committee
take action at once, but this did not
come about because a majority of the
committee were absent. Attorney Gen
eral. Clapp came in and began to tell
stories. Judge Springer broke forth:
Erred Underwood tells US"
Underwood-Here, don't father any
thing that you tell.
Then the Judge sprung chestnut.
Mr.. Clapp followed and everybody
laughed.
"Why," asked the Judge, sis piece
of foolscap paper like lady's dog9'
No one answered.
'Ah,'' said the Judge. 'sYou do not
know? Well, well, gentlemen, piece
of foolscap paper is an inclined plane
and an inclined plane is slope up.
See?''
Mr.. Lowry called for more, and so the
fun ran on until at $50 MessrS. Ives,
Sevatson, johnson and Flynn, of the
committee, were secured and the inveS-
tigation began.
Mr.. Underwood was first sworn, and
as superintendent of the Sault Ste
Marie and the Minneapolis & Pacific,
gave testimony as to the construction Of
the latter system.
connection with the road, nor do know
its financial condition nor how it was
| paid fCr.''
Mr.. Underwood also stated that he
had no particular knowledge of the last
annual report of his company, pre-
scented to the railroad commissioners,
although it was signed with his name.
The cost of the road cannot be given
because it is not finished yet. The bal
| lasting, fencing, ETC., have not been
done yet and it is all unfinished road.
| The Manitoba road Oh both sides of it is
all unfinished road. The Manitoba
road on both sides of it is better built
road. When completed entirely with
terminals ] do not think that such a
road can be built for less than S35, 200 per
mile"
Reports as to the cost of the road,
signed by Mr.. Underwood as true
statement he could not say that he
| had ever given or ever seen them. The
further questioning OF Mr.. Underwood
was brilliant effort to ask him ambig-
uouS questions and secure from him
equally brilliant and unilluminative re-
plies.
'Speaking of jokes" said Judge
Springer to Mr.. Lowery, lit reminds
me of my recent trip to the coast. the
party l was with, after the second day
| out. passed a resolution that no jokes
should be told unless accompanied by a
diagram"
MIR. Underwood explained the topog-
| raphy OF the country over which the
| road passed and was dismissed.
Mr.. l4oWery was sworn: Il am vice
| president of the road. | transact but
| little business with the road except at
times to try and sell some bonds. l am
considerably like pigs tail, more for
| ornament than use. | did help to Sc
cure money for the construction of the
road. [ cannot give the cost of the road.
| 1,pii / no nh Al
and very economically. | cannot state
approximately what the road has cost
The income certificates had a prefer
ence over the stock, but were not obi
cations against the road. Part of them
were paid for in stock and part went to
the purchasers of bonds. The income
certificates were $4,000 per mile. The
bonds could not have been sold except
for this extra inducement of certificates.
For every $4,000 worth of bonds there
were $4,000 of certificates. After the
interest is paid on our bonds we will
have to pay an interest on these certifi-
under the advice of counsel. The total
amount of stock issued by the road
was $4,000, owned 10y Messrs. Wash
burn, Fletcher, Oswald, Langdon
myself and others. The balance
of the cost of construction is represent
ed by bonds and income certificates.
The total amount of bonds issued fol
the minneapolis & Pacific is about
81 900, 600, and they sold for s. cents
with the income certificates. | cannot
tell the total amount of the income Ger
titicateS. For the balance of the in.
come certificates disposed of, but not in
connection with bonds and to home
parties, $4,000 was received and put
| into tba construction =
Judge Springer was sworn:
The income certificates were simply
all assignment OF the profits. The hold
ers Of them are not entitled to vote
The total amount issued was abou
S5,02T, 600. | think that less than half {
million Of them went to the bondhold
ers. wouldn't want these certificate:
at all to-day unless the prospects
change. The owners of the $50, 0Ol
stock originally controlled the road, bu
since the consolidation that ha
changed.
Mr.. Ives presented this to JuCg'
Springer as the total cost of the road.
| STOCK Observation-Disclosures. 500. 0Ot
Bonds and income certificates -. 5, $40, 5Ot
Income certificates 10 local own
ers............. ...........,... 947, ooc
S4,646.5 so,
Floating Indebtedness. ......... 4O0,GOi
Total miles road at the the time
this debt was incurred ......... %
Judge Springer-No. because there i
not included in that moneys borrowed