The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-10-15
AF|FTY MILLION
DOLLAR STEAL
by Mark Hanna's Deal Last
Summer--G Governments
to Lose That Sum.
AN INFAMOUS JOB
COMMENCED BY CLEVELAND
AND TO BE CONSUMMATED
BY MCKINLEY.
M'KENNA TO GET HIS REWARD
There is Evident Collision Between The Gov
eminent Officers and the Syndicate Which
Has Arranged to Buy in the Road
After Wrecking It.
New York Worldly
New York Worldly

Tue Union Pacific Railroad may not
have been conceived in sin, but it was
6wought forth in iniquity. From the
earning of the first spadeful of earth un-
Gil now almost everything that has re-
hated to it has been a swindle and
scandal.
Not the least of these swindles, not the
least scandalous chapter of the rail-
roads history, is that which lis to be
consummated in November, unless the
president shall interfere to prevent
blackening of his administration more
clustering in its shamefulness than was
even the Cleveland secret dicker for
sale Of government bonds to a syndi-
cate of the Presidents friends for many
millions less than they were worth.
Thirty-three years ago the government
naned to the Union Pacific Railroad
Company $33, 100000 in bonds to aid
In its construction. On these bones
the government has paid interest ever
since The net debt is now $4,000, 900.
Tt was in the contract that the rail-
road company should repay the bonds,
principal and interest. 1t has not i'll
Sact repaid even the interest.
The robbers who controlled the com
pany pocketed the, bonds and loaded
they could not pay. BY bribery and cor
Eruption. involving the expenditure of
S525.000. through r. G. Durant they
secured an act Of Congress which made
the governments lien a second instead
of first mortgage. They then issued
first mortgage bonds and pocketed the
proceeds.
After taking S112,000,0O0 directly and
indirectly from the Treasury the COM
pany was confronted in 1894 with the
obligation to pay. Thereupon it pro-
ceeded to wreck the property so as to
leave the government as nearly as posi-
bic nothing to levy upon. 1.-Two streaks
Of rust and right of way" boosted one
of the swindlers, were all that the gov
eminent would get.
But in spite Of the wrecking the prop
erties are valuable. They are abun-
dainty able to earn interest on an enor-
NOUS capitalization. The line is still
the most direct one between the Atlantic
and the Pacific. So the government has
decided to foreclose its mortgage, and
cell the road
Here comes in syndicate. 1t pro-
poses that the government shall give up
$20.000,000 or so Of its just claims; but
that is not all that it proposes. The
evidence presented in the World leaves
no room for doubt in any honest mind
that there has been collision between
this syndicate and government officers,
eollusion intended to give to this syndi-
date an advantage worth scores of mil
lions, every dollar Of which is to be
taken, by fraud from the people.
The sale is set for the early days Of
November. Its terms are such as to ex-
cIude all actual competition. 1t is stip-
ulated that certain enormous cash pay
ments shall be made which no syndicate
could possibly arrange to make in actual
cash within the brief time allowed. and
which If made would bring chaos to the
money markets of the country. This
shuts out all real competition at the
sale and gives S20,0OO,0O0 to the syn
dictate ar a mere bonus.
For this bargaining syndicate can
make the payments because it holds
practically all of the first mortgage obi.
cations of the company, and under the
adroitly arranged terms of sale these
bonds are to be accepted as cash.
This syndicate can therefore buy the
road for $20,OO0000 less than the gov.
ernment's claim, while nobody else can
buy il at all. The road is worth vastly
more than the governments claim, and
there are those, as the World will pre-
sently show, who would gladly give
more. But in order to do so, under the
proposed terms Of sale. they must raise
S115, 100000 in cash within about thirty
days-a manifest and intended impossi'
bility.
In brief. by collision with government
officers this syndicate has arranged t.
cheat the government ont of 500, 100000
and get the property for greatly less than
Il is worth.
If carried out as proposed, it will be as
great fraud upon the government, as
big swindle of the people, as any other
OF the long series of Pacific railroad rob
berries.
1t is the plain duty of the administra.
ton to stop this steal.
1t is the duty of the President to ar.
rest the "hold-up," to make the terms OF
sale such as will permit actual compnti
ton, and If possible to find out and pun
fish those of his trusted lieutenants who
have planned it, if any such there are
THE HISTORY OF A CRIME.
How the Bankers Dictated Terms n