Middlebury register. (Middlebury, Vt.) 1886-1937, 1897-10-22

an act OF congress Whlch made the gov
ernment's lien a second instead of first
mortgage. They then issued first mort
gage bonds and pocketed the proceeds.
After taking $l12,OOO,000 directly and
indirectly from the treasury the com
pany was confronted in 1891 with the
obligation to pay. Thereupon it pro-
ceeded to wreck the property so as to
leave the government as nearly as pos
sible nothing to levy upon. 1.-Two
streaks of rust and a right of way"
boosted one of the swindlers, were all
that the government would get
But in spite of the wrecking the prop.
critics are valuable. They are abundant
ly able to earn interest on an enormous
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
sell the road.
Here comes in syndicate. 1t pro-
poses that the government shall give up
10000 900 or so of its Just claims; but
that is not ali that it proposes. The
evidence presented in the Worlds news
article leaves no room for doubt in any
honest mind that there has been collu-
sion between this syndicate and govern
ment officers, collision intended to give
to this syndicate an advantage worth
scores of millions, 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-
clude all actual competition. 1t is stipu.
lated 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 900 to the syndi.
cate as a mere bonus.
For this bargaining syndicate can
make the payments because it holds
practically all of the first mortgage OBJ
legations 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 S20,000,00O less than the gov
ernment's claim, while nobody else can
! buy it at all. The road is worth vastly
more than the governments claim, and
there are those, as the World will pres.
emily show, who would gladly give
more. But in order to do so, under the
proposed terms of sale, they must raise
S1l5, 100000 in cash within about thirty
days-a manifest and intended impos-
sibility.
In brief, by collision with government
officers this syndicate has arranged to
cheat the government out of $4,000 ,00O
and get the property for greatly less
than 1t is worth.
How the collision came about and who
were parties to 1t constitute a second in
stalment of the story which the World
will relate hereafter.
Meantime enough is printed today to
show that these sales, if carried out as
proposed, will be as great fraud upon
the government, as big swindle of the
people, as any other of the long series
of Pacific railroad robberies.
1t is the plain duty of the administra
ton to stop this steal.
1t is the duty of the president to ares
the "hold.up," to make the terms OF
sale such as will permit actual competi
ton, and if possible to find out anC
who have planned it, if any such there
are.-New York World.