The Lexington intelligencer. [volume] (Lexington, Mo.) 1901-1949, 1904-09-10

the railroads. Bonds so secured 10 the
amount OF SS1,i55.S4O we're issued.
This was the beginning Of the state
debt The civil war came on. and all
railroad companies. except one, default
ID in payment OF interest on the bonds.
One Of the railroads was sold under the
administration Of Gov. Hall, a demo-
crat, and brought the FUR amount due
the state. When the Republican party
came in power. the balance due from
this purchase. Of about $4,000, was
for some unaccountabe reason wholly
released without any consideration to
the state. The other roads were sold
from time to time under the Republi-
can administration, bringing $6,131,-
295, leaving a balace of more than
S25,000,000 due the state. In other
words, this debt of $4,000, 900 was
shifted from the railroads to the peo-
pie. AS to whether there was any cor
ruption in these sales, in view of the
remarkable in which the as
sets, securing the bonds, dwindled
away, is a clear question. Our oppo-
nents claim that the railroads were
sold in the open market for the best
price ~obtainable, and they brought all
that they were worth. On the other
hand, Gov. Fletcher. a Republican, in
his inaugural address in January, 1865,
stated that the railroads securing the
outstanding bonds of the state ARE
ample security for the amounts ad-
vanced to them respectively"
The Wabash railroad owed the state
S6,9G5, 900. In 1868 the Republican
legislature passed an act whereby this
debt was sold for $500, 900 to a private
party. Comment on this transaction
is unnecessary.
The Iron Mountain railroad owed the
state about $1,000, 600. Commission
ers we're appointed by the proper au-
thorities to sell this road to pay the
amount. These commissioners reject
ed an offer of more than a million
dollars and finally sold the road to
one, Mckay, and others, for $3.50, 1000.
The circumstances of this sale were
so scandalous that an Investigation
was instituted by the legislature,
which developed the fact that Nc
Kay's fortune at the time he bought
the railroad consisted Of about one
thousand dollars in money, two Jules
and a spring wagon. 1t also appeared
that three brothers of one Of the com
mlssioners. who rejected the higher
bids, were directly interested in the
purchase.
The Missouri Pacific owed the state
$40, 100000. According to a report of
a legislative committee, the road was
ample security for the amount, but
the same legislature that adopted this
report passed an act relieving the Pa
ciic railroad from payment of all but
5000, 900 of the Indebtedness, giving
$5,7S0,000 of the states assets away
for nothing. The report of a com
mittee appointed by the board Of d.
rectors of the Pacific railroad, which
was filed as an exhibit in the case Of
Lamb and others against the Pacific
railroad and others, in the United
States circuit court at st. Louis, is
interesting in this connection. The
report is as follows: OUR NEXT
MOVE WAS TO ENGAGE OR EN-
PLOY IN OUR INTEREST PERSONS
OF SUCH POLITICAL AFFINITIES,
STANDING AND POWER WITH
THE DOMINANT PARTY IN THE
LEGISLATURE AS WOULD SOFTEN
DOWN OR RENO We THE COPPER
HEAD CHARAC TER OF OUR
BOARD AND ENABLE US TO GO
BEFORE The PARTY ENDORSED
BY SOME HIGH IN THE FAITH.
THROUGH THEM WE WERE LET
INTO THE SECRET OF HOW
THINGS ARE SOMETIMES DONE,
WHEN OTHER M,EBRQ9G sAFE IN.
EFFECAUAL. IT WAS E3hR1BEY
COSTLY FOR AN ORDINARY JOB.
BUT WE WERE GOING IN FOR THE
MILLIONS. THE SUM OF FIVE MIL
LION DOLLARS is THE PRICE, THE
STATE ABATING SIX MILLION
DOLLARS OF ITS CLAIM. 1T WAS
OBTAINED THROUGH OUR EXER
TIONS AND APPLIANCE AT A COST
TO THE COMPANY AND STOCK
HOLDERS OF S57,S1S6O, ALREADY
PAID, AND $134, $1,000 TO BE PAID
THE WHOLE AGGREGATING 1892,
1880" This certainly bears all tbs
earmsrks of boodling.
The Frisco railroad owed the STATE
six and a half million. Commissioner
were appointed and the road sold FOL
$1,300,000. Again the Republican legis
lature became generous, and after thu
payment OF 1925, 900 it passed an &C
kindly relieving the purchasers o
making further payments.
These are not mere surmises, Blu
actual facts from legislative Journals
and court records. This Is the truI
story Of how, under Democratic rule
the state loaned It's bonds, takinI
mortgages on the railroads and land
as security, and Of how the amour
due the state was reduced" unde
Republican rule. When the Republ
can managers deny that there was col
ruption in this marvellous system Q
dnanceering, whereby the amount du
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