The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-08-09
THE FARLEY SUITS.
How the Bonds were Acquired
from Holland Holders.
THE BONDHOLDERS' AGENTS.

By JOHN H. BURKE.
In our last we proved that Mr.. Hills
verified pleadings were not always re-
liable; that Brewer decided in Hill's
favor despite preponderance of evil
dence against him; that Holland
holders were deceived or misled by
Hill as to the value of the bonds and
property; that Hill drove other buy
ers out of the market, ran legisla-
lures, and controlled the press to do
his bidding.
Among the earlier exhibits offered
by Mr.. Hill were certain powers of
attorney from the bondholders' COM
mittee to Johh S. Kennedy & Co., of
New York, John S. Barnes being of
the company. Hence the negotia-
tions for securing the bonds were had
with them, and if they were either
deceived or bribed, the bondholders
may have lost. To arrive at solu-
tion of the subject, we submit the
following:
AS early as Feb. 81, '7S, Mr.. Hill
writes to J. S. Kennedy & Co.: "We
have no fear as to the mortgages of
$4,000 per mile being insufficient"
(Hill Elk. 81, thus showing some I'M
Outstanding.
John S. Barnes to Hill Feb. II, '7S:
81 wrote Farley letter. The
gist of it was, that as you owned
practically all the interests in the
property \ nothing should be
done by him without full consulta-
tion and approval. *** With all
the new light you have had since
your return it strikes me that another
meeting of all hands would be desirable
so that all could pulL together for one OBJ
ject." Hill Elk. IS.
Kennedy to Farley, March 4,'78: II
have told Mr.. S. they have a good
thing if they will arrange carefully
and economically. Ialso advised him
not to allow statements to be made in
the newspapers such as have appear
ed in the newspapers lately, but to
keep their own counsel and say nothing
about their bargain and achat they erpect
to make out Of It," Hill Elk. Sc.
And yet, up to this time, Hill ct al.
have not secured their contract with
the bondholders.
On Aug. 23,'78, Farley writes Barnes
in regard to Kittson: ellis friend
who is expected to furnish the mon
ey has unlimited control of Canadian
politics. 1t might become a Canada
project, but that apoold be matter of
no moment to you or me if we could
make some money!" Hill Elk. 40.
June %, 1878, Hill writes: "With
present demand for lands, ETC., ~
we could not control the price of Ell
Their IS or IS for three days after the
committee surrendered their holding.
The St. Paul banks could sell bonds
at much higher prices. I have
written Mr.. Barnes to try and en-
courage the committee little till
we could write you" Hill Elk. 129.
Under date of July "a, rs, Hill gets
the following: "Ihave finally arranged
aohat course Barnes is to pursue IN Am
and also refers to our decree
of foreclosure. Hill Elk. 26.
John s. Kennedy in his testimony
admitted he had been both a director
and officer of the Manitoba and
would not deny he had owned $2,OOO,-
600 of it's stock.
He had also been interested with
the same parties in securing a char
ter later, resulting in the building of
the Canadian Pacific. And Hills
counsel, at p. 424 of his argument, al
ludes to the fact that Farley in his
testimony, claimed that Kennedy &
Co., were going to be great factors in
the deal and that they were very dear
men.
INFLUENCING LEGISLATURES.
February 2, '76, Hill writes: "Mr.
- "a member) is ready to act with
you in all matters, and in fact feels
oel" Hill Elk. 81.
And on Feb. 5, II. Farley writes
that certain party, now dead, is one
IF those old political hacks who has
lived out his days of usefulness. \
[ am not prepared to say what he
might do in the Minnesota legisla-
lure" Hill Elk. 70.
Farley to j. S. K. & Co., June 80,
1877: "This property must have a To-
cal protection in some way or other,
and the Dutchmen, if they owned all
The bonds, could we'll afford to distrib-
ute Is per cent of the whole amount
TO the right parties here free of cost.
The Dutchmen will never get as
much money out of the property if
they don't accept the proposition.
Foreign stock and bOndholders can
get no sympathy or protection from