Mexico weekly ledger. (Mexico, Mo.) 1855-1956, 1902-04-24
mIssoURrs STATE DEBT
Facts and Figures From Public Re-
cords Show Conclusively How a
Debt of $25.000,000 Was
saddled on the People.

Debt OF SSo,OUU,UUU was
saddled on the People.
JEFFERSON City, Mo-, April H.
Secretary of State Sam B. Cook, In the
latest chapter Of his political hand
book, makes an exceedingly interest
ing subject OF the origin and reduction
of the State debt. In this chapter
given to the press to-day, Mr.. Cook
says:
So much that is wholly at variance
with the official records has been
published by a partisan Republican
press concerning the creation and re-
duction of the State debt that brief
recital of the facts will not be out of
place at this time.
The Republicans make two specific
allegations regarding the State debt,
which, If both be true, would relieve
that party of any responsibility for the
more than forty millions OF dollars,
principal and interest, which the
people OF Missouri have been required
to pay since the Republicans were In
control of the State
First, they assert that the State
debt originated before the Republicans
came into power.
Second, that the railroads, to aid in
the construction Of which the State
bonds were issued, we're not corruptly
or improperly relieved Of their tinan.
cial obligations to the State while the
Republicans were in control.
The first allegation is true and has
never been questioned from a Demo-
cratic standpoint.
ORIGIN OF THE STATE DEBT.
Prior to the Civil War, when million
aires were few, and private capital for
the construction Of railways was as
scarce as it is now plentiful for that
purpose, both the National and State
government were lending their credit
to aid in the building of these great
enterprises, the construction Of which
was admittedly essential to the de-
velopment Of the country.
The National Government, in ad-
dition to loaning its credit, made large
grants of public lands to aid these en-
enterprises,
Missouri, from 1851 to 1857, loaned
her credit to these enterprises, taking
as security for the bonds issued first
mortgage lien on the property of the
road, including not only their right Of
way, superstructure, buildings, equip
ment, etc, but also the lands granted
them by the National Government.
Counties, towns and individuals made
liberal subscription to these enter
prises, and these subscriptions, with
the money advanced by the parties
constructing the roads, all went to
secure the State.
Governor Sterling Price was opposed
to the policy Of the State aiding in
the construction of railroads and
vetoed the measure, but the General
Assembly passed the bill over his veto
by the constitutional majority.
1t should be borne In mind that the
aid loaned by the State was for The
construction Of the main lines OF the
Missouri Pacific, Wabash then North
MissourI Hannibal and St. Joseph,
Iron Mountain and Southwest Pacific
tnow Frisco)
The national government had grant
ed these lines 1924, ,434 acres of land
to aid in their construction, and this
valuable property was also included In
the mortgage held by the State.
Under the conditions imposed by
the Legislature, the State was amply
secured against loss. If, however any
OF our Republican friends are skepti-
cal on this point, they are respectfully
referred to the inaugural address OF
the Republican Governor, who, In
1866, in reviewing the conditions Of
railroads, concluded with this state
ment:
"The roads are ample security fol-
the amounts advanced by the State to
them respectively.
So much for the creation Of the debt
and the security provided.
REPUBLICANs PLUNDERED THE STATE.
Now, let us see If the securities
were squandered and the debt there
by imposed on the people through cor
rupt and fraudulent methods.
The Wabash owed the State In
principal and interest SO, 100000.
The Legislature, which was over
whelmingly Republican in both
branches, in the session OF 1868, passed
this act:
THAT the debt due, or to become
due, from the North Missouri Rail.
road Company to the State Of Missouri
for bonds Of the State loaned said
company to aid in the construction OF
their road, amounting to q, $50, 600
and for interest paid on said bonds by
the State, is hereby sold and assigned
to Henry 7. Blow and
their associate, for the sum OF
s200, 900, which sum may be paid In
any outstanding State bonds, and
shall be paid into the State Treasury
on or before the fourth day Of JULY
next
II BY this act there was fastened on
the State a debt Of s6,760,0OO.
This Republican Legislature die
not by any means limit its corpora
tion debt releasing and State-debt
creating tactics to the Wabash.
IRON MOUNTAIN FARCE.
The Iron Mountain went through
the farce of a public sale. The high
est bid was rejected, and the road
which owed the State over s6,OOO,OOI
was awarded by the Commissioners d
firm by the name OF "a. ]. McKa.
and Others for the sum Of S550,OO0.
The Commissioners rejected bids 70
over a million dollars.
Evidence taken before the McGinni
Legislative Committee developed th
fact that McKay's visible propert
consisted Of a span Of Arkansas mule
aad an open spring wagon, and tha
the "others" associated with him a
purchasers included three brothers O
r one Of the Commissioners, who vote
? to reject the higher bid.
BY this Iron Mountain transactio