The herald., 1893-10-23
AN ATTACK ON GEN. SHERMAN,
Stories Prompted by His Enc
mics Which He Refutes.
r. H. Mcdonald Charged With Insti-
eating the Affair.
The General Gives an Exhaustive State
ment Which Shows That the
Attack Is Absolutely
Baseless.

The San Francisco Chronicle of Sat-
urday prints some old stories against
Gen. M. II. Sherman of the electric
railway. The stories are all baseless af-
fairs, concocted by enemies of the gen.
eral, and have been industriously clrcu-
lated hereabouts by that class of people
who are always anxious to throw mud
at successful man. Not one OF the
papers down here would print the stuff,
it having been thoroughly Investigated
and found TO be without foundation, in
stigated, as said, by interested persons.
In fact, former member of the Chroni-
cle's staff was down here for several
weeks working up the story. and was
given by General Sherman every oppor-
tunity to investigate everything he
wanted.
THE GENERALS REPLY.
The generals reply to the affair as
printed in the Chronicle is as follows:
M. III. Sherman was seen last evening
by Chronicle reporter, and this was
the story he told with reference to the
charges, which he declared are instig-
ated by the McDonalds:
1.-THE Phoenix Water Works company
is a corporation organized under the
laws of the territory of Arizona. 1t has
a capital stock of 81 900. coo and bonded
Indebtedness of $250.000 have third
interest in the company, the Pacific
bank has another third and the remain
ing third is owned jointly by Jerry Mil
lay and T. w. Hine of Pn@nix. The
property from the start has been man
aged by MIR. Hine and Mr.. Millay. The
company has so years. franchise for
the whole city and has an income suffi-
cient to paw the interest on the bonds
and all expenses of operation, With some
money left over each year for improve
ments, which, OF course, become neces-
sary in growing city like Phoenix. The
company has always been prompt in
caring for it's interest coupons, and has
never defaulted payment. The Pacific
bank purchased l40 bonds at par and
received % bonds as bonus, while the
stock cost the bank nothing.
"Now with reference to the Phoenix
City Railway company. This was also
incorporated under the laws of Arizona.
1t was stocked for $500, 900 all of which
was owned by myself and friends. The
company issued l66 bonds. These were
purchased by the Pacific Bank. The
company has the franchise for the whole
city for period OF so years, and also q
franchise for lighting and power, with
the privilege of erecting poles for elec-
trio lighting and for running electric
cars on every street in Phoenix. The
railway is operated partly by electricity
and partly by horsepower. 1t is earn
ing enough to pay its expenditures and
the interest on its bonds. None OF
its payments have ever been defaulted
when they became due.
'sThe Los Angeles Consolidated Rail-
way company has a capital stock of &c.
O00, 900 and ITO miles Of street. railway
trackage, % miles of which are operated
by cable, 43 by electricity and 90 by
horses and mules. The consolidated
properties cost about 80 100, 600 and are
bonded for $3,000,000. The Pacific
Bank has $580,00 in theee bonds for
which it paid s37S,000. The Pacific
bank owns one-twelth OF the stock of the
Consolidated Railway company which
was given it as bonus.
~ understand that it is claimed by
the McDonalds that had something to
do with their bank Investments in the
Gila valley, A. T., ana their ownership
OF the Mohawk canal and land COM
pany. in which they invested a very
large sum of money. This is totally un-
true, as Judge Waymire of this city and
G. II. Norton of Yuma, A. T., will tes-
tlfy. The Pacific bank had this invest
ment for something like year before |
knew that the bank was interested in
the Mohawk canal scheme.
"As to the charges of arson | have
this to cay l did own the buildings
in Prescott, they did burn up and a man
Lost his life in the fire. At the time of
the fire | was away. What insurance
received was not adequate to the loss
sustained, as Mr.. Ives of the Fireman's
Fund, who was one OF the adjusters at
the time of the fire, will bear me wit
ness. The charge that / had anything
to do with the fire ia totally false.
"In regard to the cattle deal, may
say that l have been largely interested
in cattle and cattle ranches in Arizona
for many years, and am still interested
to considerable extent. l never sold
any cattle to an English syndicate.
My dealings have all been with butchers
and cattle buyers, who have made their
purchases on the ground, paying go
much per pound. All charges OF q
fraudulent cattle transaction are false"
Mr.. Sherman then went on to speak of
the charge that he had improperly in
fuenced legislation. ''It is true" said
ne, "that the corporations with which l
am connected have been interested in
different bills before both the California
and the Arizona legislatures, but any
charges that l have used money for any
improper purpose in connection with
legislation are false and malicious in
every particular"
None of the books of any corpora.
tion with which I am connected have
been destroyed" continued Mr.. Sher-
man. "The charges that any moneys
or securities have been misappopristed
by me are untrue. These charges were
fully investigated not long ago as far as
the Los Angeles Consolidated road is
concerned by men of unimpeachabl
character, including j. NJ. Allen,
William Alvord, Lowell White, John
Mckee and others of this city, Judge
Bicknell and others of Los Angeles and
Attorney f. B. Smith and others.