The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-08-16
THE FARLEY, SUITS.

How the Bonds were Acquired
from Holland Holders.
THE BONDHOLDERS' AGENTS.
By JOHN H. BURKE.
CONTROLLING THE POLICY OF THE
ROAD.
On July 81, 'S8, Mr.. Hill writes the
Hollanders about the poor crops, the
bad roads, etc. (see Elk. 84), and on
Aug. "a of the same year he writes to
Stephen about the splendid crops, in
quiries about lands, and great value
of the property. See Hill Elk. 121.
Under date of Feb. 10, '7S, Mr.. Hill
gets letter saying: "In short, you
should now look upon the property as
ours" Hill Elk. co. And July 80, rs,
another; showing how the Premier
would execute certain papers relat-
ing to the Pembina branch. Hill Elk.
%. Dec. "a, '7S, one of the members
wrote Kennedy & Co. requesting
them to have Farley do nothing with
the business of the road without con-
sent of Hill and Kittson. Hill Elk.
page 149.
Dec. 30, rs, the same party writes
Hill telling him he has no confidence
in certain employe of the company
and suggesting successor. Hill ex-
hibit 80.
Same to same Jana, 70, suggests
Hills ordering certain materials.
Hill Elk. "a. And same to same Jan.
4, 10, suggests that Hill see Grand
Forks people about subsidy; also to
see about building certain lines to
keep out poochers Hill. Elk. IS.
Same to same Jan. I, 10. "Don't
like to see working expenses of our line
60 per cent while n. P. is Al per cent"
Hill. Elk. Sc.
Same to same Jan. II, '79: "Am glad
you are looking after our Dakota in
terests. We must put on a bold
'front.'" Hill Elk. 81.
Same to same Feb. IA, 10: II have
a wire from Mr.. Farley that he has
withdrawn rates beyond St. Vincent"
Hill Elk. 43.
On Feb. 1919, the directors of the
1st Div. ST. Paul & Pacific were Geo.
Stephen, j. J. Hill, r. B. Galusha,
John S. Barnes, and Jno. G. Mean
drew.
From the foregoing it will be seen
that Hill and his associates had and
attempted control Of the policy of
the road long before it was sold un-
der the DEGREES.
THE FORECLOSURE SALES.
BY the agreement of March II, rs,
Mr.. Hill and his associates had Sc
cured control of bonds as heretofore
shown to be paid for at nominal
percentage of par, in either cash or
bonds of new company to be formed,
with interest amounting to $25, 225,-
114.86, and including certain receiv-
er's receipts issued to them about the
year 1878, amounting to about $780,
600, made over $26,OOO,OOO that they
could afford to bid, using the bonds
as payments, since they could not be
called upon by the Hollanders to put
up more than certain agreed sum
anyway, and of course at the sale
no one else could bid such a sum
without putting up the $26, 900 in
cash, and as consequence bidders
were barred. Moreover, Hill in try
ing to secure said bonds had, by the
admissions of his own letters, re-
moved or bought off his leading COM
petitors in the securing of the bonds,
or the securing of the road. See Hill
Elk. 39-123. and his own testimony.
For all the properties of the roads,
including 100000 of bonds held by
them, and including the lands, roll
ing stock, ETC., there was hidden
81 100000 in round numbers, for Hill
ct al paid fraction less than $780,
600 in cash; and for the balance sur
rendered about $4,000, 900 in claims,
hence you can see they were surren-
dered at very low percentage on
their face value.
The bonds were sold for 100000,
leaving about So, 100000 for the road,
land grant and all; or about $4,000
a mile for a road and land grant
which the Manitoba, in it's report
two years later, says cost over $4,000
per mile for the road alone.
Was the sale fair?
COST OF THE ROAD.
Farley, in his report the court,
shows that the cost of $2104 miles of
road to have been $1,825, 500. ID; or
about $4,000 per mile. And of the