The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-06-28
THE HILL BLOWOUT
MOTIVES THAT MOVE A MOGUL
A Correspondent Gives his I'm
preston of the "True In.
wardneSS" of the Guilful
Great NOrtherner.

WdrOneSS OF the Ou4l1ul
Great NOrtherner.
By JOHN H. BURKE
The present Great Northern SyS-
tenn was originally started as the Min
nesota and Pacific having grant of
lands from the Federal government,
but by reason of financial troubles it
failed and the grant passed to the
St. Paul and Pacific. Which COM
pany in turn failed and went into
the hands of the court. A man
named Farley, of Iowa, being appoint
ed Receiver. In May and June, 1879,
it was sold under DEGREES of fOreclOS-
ure issued out of the United States
court and the End District Court of
Ramsey county, In relation to this
a daily paper of June, Sth, last says,
that in 1873, and IA, James j. Hill
in connection with Donald A. Smith
and N W.. KittsOn commenced &C
curing defaulted bonds of the St.
Paul and Pacific, and the same paper
says that in 1876, in connection with
Donald A. Smith and Gen. Stephen
of Montreal he began active negotia-
tions with the Dutch committee in
Holland resulting in the purchase of
the bonds of the St. Paul and Pacific
road.
We have heard great many tough
oil frOr, hut
this is the first time we have seen
any intimation that the Holland
holders of the bonds and stock of the
ST. Paul & Pacific ever got thevalue of
a Picayune for their interest therein
and in this connection it may be
we'll to state that the last report of
the Railroad Commissioner of this
state shows that at the time of the
foreclosure sale of the St. Paul and
Pacific it's obligations were:
Bonds and interest. 500, 600, 900
Capital Stock. ............ 6,5OO,OOO
Total. 80. ........... $39, SOC, 900
This was all wiped out by the sale
to the Manatoba company which
Immediately issued:
LIST Mortgage bonds. ......$ 100000
End ....... 100000
Fully paid stock. ....... 15.OOO,OOO
1t may follow then as natural
deduction from the above,
1St that Holland and other
bond and stock holders
got for their. ............ 500, 500, 900
Not to exceed. ....... 100000
I'd. That the full legitimate cost of |
the Manitoba road in this state was
not calculated to exceed and did not |
exceed $S,OOO,OOO
3rd. That the $4,000, 900, End mort
gage and 100000, stock making
$23,OOO,OOO in all represent wind, wa
ter, brass and cheek.
If we remember Alright, suit was
tried in the u S. court brought by
Farley against James Hill and Kilt
son to compel them to divide the
profits, swag, or what not, on the deal
since it seems that Farley the then
a rake-off from the profits of the
sale he was to make as an officer of
the court, and as natural sequence
President Hill could not see his
way clearly to cOuntenance such an
immoral transactiOn-which refusal,
according to the complaint, left
FARLEY Gin the SOuD.'
From the Minnesota House Journal
of 1891, at page 461, it appears that
the state of Minnesota had conveyed
to the Manitoba under the congress
sional grant 1902, OS1 .43 acres of pub
lie land, and that the Eastern
Minnesota claimed, under the
swamp land grant, 1866 acres or
3 62S, 745.43 acres in both.
From page 464 of the same book it
appears that the Manitoba company
put it's grant at 1,747 ,44O.51 acres in
stead of 3,2O2, OS1 43 acres apparently,
but as to this there may be some
error, hence we will take statements
that we know to be authentic.
The report of the commissioners of
the General Land Office for 1887 and
'S8, at page -, gives the United
States grant to the road as follows:
ACRES.
MILL Iluc ,0lU, QUO. ~
St. Vincent Extension. -. l, 799 ,311 81
Total. .........,.....3 3, 100 ,S2O SO
Then by what authority, and for
what moving considerations have the
state officials conveyed to said COM
pany 1902, .43 acres or nearly 1OO,-
600 acres in excess of the grant, and
why do not the governor and attor-
ney general take steps to recover the
same.
But this is not all. The hOggish ten
denotes of this great anaconda were
not satisfied, for by the report of the
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