Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1909-05-15


Sc P. Farley came into the st. Paul &
Pacific Railroad in 1873 as Receiver
for the United States district court,
the first division of the st. Paul & Pa
cific, as then known, had the line from
st. Paul to Breckenridge and the
branch to Sank Rapids; the other
company, known simply as the St.
Paul & Pacific Railroad, had the ex-
tension from Watab to Brainerd and
the line from St. Cloud to st. Vincent,
in all something more than four humid
red miles of track. Farley not only
put these in order, but he completed
connections with the Canadian Rail
road at the frontier. He still further
proved his capacity when, after three
or four years of his receivership, the
Minnesota legislature passed an act
providing that unless the road should
be completed to certain point within
certain time it must forfei it part of
the rich land grant whereof the peo-
ple's representatives had been so
liberal. Judge John F. Dillon author
lied Farley, as receiver, to construct
this extension and to issue receivers
debentures for the expense. So the
receiver built one hundred and twelve
miles of new road and saved the land
grant," says Mr.. Russell.
Four facts connected with this OPP.
Grafton are important, he summar-
ICES:
"First, Judge Dillon limited the cost
of construction to $4,000 mile, and
this sum must include station build
ings, grounds, side tracks and equip
ment.
''Second, the receiver built and
equipped to one hundred and twelve
miles for less than the limit fixed, ex-
pending only about $1,000 mile,
some stretches being done for 1925
a mile. Kindly remember this. It is
a good fact to have handy when you
encounter the assertion of gentlemen
in the railroad war that it costs $780,
600 to $75, 700 mile to build rail-
road.
"Third, the receiver filed with the
court detailed accounts of every item
of expense connected with this work,
and every citizen can go now and see
in the Office of the clerk of the United
States district court at St. Paul
Mimi, exactly what it costs to build
and equip railroad when the work
is honestly done.
"Fourth, the construction company
with the alias, as before noted, ex-
pending the money of the lowly and
ignorant foreigner, had charged up
$4,000 mile for construction in the
same region and had done the work
so badly that when the receiver took
charge much of the track was unsafe"
J. ). Hill, at that time, was local
freight agent of the road at ST. Paul.
Securing the cooperation of Norman
W. Kittson, George Stephen and Don
aid A. Smith, first mortgages were
presently and quietly obtained son
more than 500 milhs of operated rail-
road and 1850, 6O6 acres of land, on
the understanding that they should
not be paid for until the road should
be reorganized. This was done in
1879, the Canadian brotherhood form
ing the st. Paul, Minneapolis & Man
itoba Railway Co., of which George
Stephen was president; Norman w.
Kittson and Donald A. Smith, direct
ors and James J. Hill, general man
ager. Whereupon there was appoint
ed master in Chancery who, on the
14th day of June, 1879, sold all the
property of the two st. Paul & Pa
cites to the St. Paul, Minneapolis &
Manitoba Railway Co. for $5, 7s0, 900
one of the most 70 mantle
events in railroad history, and too ro-
mantle for those that did not share in
it.
''For presently came the sale by
the St. Paul, Minneapolis & Manitoba
Railway Co. of the greater part of the
land for $13, O6s,Ss7, followed by the
sworn testimony of the receiver that
the property sold for $6,7s0,0o0 was
worth at the time more than sic, 000,-
900.
"There was also issued by the
brotherhood 100000 of st. Paul,
Minneapolis & Manitoba stock, for
which not one cent was ever paid into
the company's treasury, being in
fact the purest water that ever
gushed and gurgled from the financial
rocks. Of this stock Mr.. Hill, Mr..
Kittson and Mr.. Smith took twenty
eight thousand eight hundred and
twenty three s:,ares each being one