St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-07-24
TRUTH OF HISTORY.
THE DUTCH P0NDR0LDERS AND j. d.
HILL.
MACDONALD STATES THE CASE.
The Holland Bondholders Would
Not Move, Hence the Receiver
and the Securing of the Prop
erty by Mr.. Hill and Associates
"A Statement of Much Interest
From the SUNDAY GLoRE.1


communication of one John II. Burke,
assailing }. j. Hill and the citizens of st.
Paul who recently did him honor. The
meat of the accusation is one which has
not been infrequently heard, to wit:
That the Dutch boudholders of the old
st. Paul d Pacific were wronged by MIR.
Hill and his associates. Mr.. Macdonald
sets that story at rest very thoroughly
in the following manner:
am not numbered among Mr.. Hill's
intimate friends. but l believe in the
Divine command Thou shalt not bear
false Witness" and also that he who
hears such untrue testimony, knowing
it to be such, and does not contradict it,
is little better than the false witness !:
and, so believing, l wish to remove a
false impression that has been created
in the minds of many, in the manner l
have indicated.
1t is impossible to discover what good
purpose is TO be accomplished by the
publication of such a communication.
and the writer can have no other
object than to cast a cloud upon
the integrity and honesty of the
manner by which Mr.. Hill and
his associates acquired the st. Paul &
Pacific railroad and its lines and prop
erty; and, IN any event, he has not
been as careful as to the facts in this
case as such assaiIants should ALWAYS
be. But before showing that, in pub
fishing that opinion of the court, upon
the demurrer to MIR. Farley's complaint,
ne does Mr.. Hill great injustice.
Will state some facts relating to this
transaction which are personally known
10 myself, promising with the statement
that If the Holland holders did not get
all they might otherwise have received,
they owe it to their own blind stubborn
ness.
AS was member of our state senate
when the legislation hereinafter re.
ferred to was enacted, know whereof |
affirm, In relation thereto. The general
facts, relating to that purchase, are as
follOws: Being in default, the st. Paul
q Pacific company came before the
legislature of 1878 for all extension of
time to complete the road, and it was
granted until January l. 1874, to do so.
Failing to do anything that year it ap-
Piled, at the session of 1874. for an ex-
tension. In the meantime, citizens of
Minnesota, notably the then railroad
building firm of Degraff. Crooks
& Co., came before the legislature and
complained that they had not been paid
for most of the construction of the lines
from Watab to Brainerd and from st.
Cloud to st. Vincent, and asked that
they be protected by giving them lien
on the granted lands or otherwise. This
the Legislature of 1874 did, and granted
the extension upon condition of the pay
ment OF those debts. The Holland bond
holders and stockholders (who, in fact,
constituted nearly the whole company
foollshly refused to accept this legIsla-
ton or continue the construction of the
railroad upon these terms, and they
again In 1875 came before the legis-
lature asking for an extension but with
out conditions. This extension was also
granted; but with the condition that
100000 acres of the land granted to it be
set apart and reserved to the state. to
pay those debts due our citizens. This
extension the HOllanders also again
stubbornly and foolishly refused to &C
cept, and the road went into the hands
of receiver (Afr. Farley and soon after
was sold under a foreclosure of the
mortgages upon it. Evidently these
Hollanders had no idea of what the
future possibilities of that railroad
were, and do not appear to have had
forethought enough To investigate.
1t was after these gentlemen had con-
cluded to let the enterprise 90 by de-
fault, that MIR. Hill appeared upon the
scene. With that sagacitY for which
he has since become noted, he discerned
the magnificent future for that railroad
which has been realized in the Great
Northern railway system, and he set to
work to induce capital to join him IN Sc
curing the st. Paul & Pacific railroad,
which was then going begging for a
purchaser. He had been engaged with
Commodore Kittson in the transporta-
ton business of the Red River of the
North, and he knew the possibilities
of that country, and through that
was enabled to enlist Mr.. Kittson
after which it was easier to enlist S l.
Donald A. Smith, Mr.. Stephens and
| others. / personally know that at that
could join in the enterprise, and that
Mr.. Hill solicited and urged all of our
citizens who were supposed to have
| money to do so. All such had an op-
| portunity to embark in his enterprise,
or organize one of their own. But the
| truth is, that he alone seemed to realize
what the future had in store for those
| who would JOIN with him and make it a
| success. In common with many others,
l, at this time, heard him predict
and describe, with an accuracy that
today is marvellous to me, the future
| growth and development of the region
| of country which would be land is now
traversed by and tributary to his then
projected railway. 1t then appeared to
be the improbable idea of an enthusi-
asst; today behold it all a reality. He
| succeeded III enlisting capital to buy
| this railroad and its land grant and
| rights and franchises. and bought 1t at
| the highest it could then be sold for:
and who can say that. as things then
| appeared, it was not all it was then
worth? Ii not, why did not others bid
for il?
| Mr.. Hill and his associates undoubt.
| eddy purchased that railroad at a bar
| gain, but in doing so they simply took
| advantage of the circumstances which
rendered it possible Tor them to do so,
and of an opportunity that was then
open to others. Whatever ground the
directorate of the Great Northern rail-
road. with Mr.. Hill at its head, NAV
have furnished for criticism, as to its
conduct and management, 1 am salts
fed that there IS none for insinnating
| that these Holland bondholders and
stockholders were defrauded by Mr..
Hill and his associates.
Now, as to the decision of the court
which Nh. Burke sets forth in his com
munication: That decision was simply
upon the legal question raised upon the
demurrer to Nh. Farley's complainD a:
to whether person acting in the tidu
ciary capacity of receiver, could legally
enter into such contract as he claimed
to have made with Messrs. Hill anC
Kittson. AS receiver. Mr.. Farley wa:
an officer of the court, and the condem
nation of the transaction by that cour
was aimed at Mr.. Farley, who, it should
be borne in mind, was in that sui
claiming that he had while such re.
ceiver entered into an agreement
with Messrs. Hill and Kittson BY
which he was to aid them in purchas-
ing the bonds of the Hollanders
This is manifest from the syllabu:
(head note) to that decision giving
the substance thereof. Had our cor
| reSnOndent nnrSued his Investigation