The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-06-17
Bale Waggener Pays Respects
to Congressman.
In Matter of That Central
Branch Bond Issue.
HE TELLS The FACTS
Would Cost q. S. $5,5OO,OOO for
100 Miles.
Advises the Missouri Pacific to
Close the Deal.

B. P. Waggener today gave out the
following interview concerning Con-
gresham Neeley's resolution:
THE newspapers of the state seem
to have been misled by Congressman
Neeleys resolution relative collection
of a pretended claim of the United
States government against the Missouri
Pacific Railway company, growing out
of the construction OF the first one
hundred miles of the Central Branch,
west from Atchison, and those news
papers which have commented on 1T,
do not appear to have the slightest
comprehension of facts.
Under the acts of congress of 1S64,
the Central Branch was authorized to,
and did, m mortgage its line for one hun
dred miles west of AtchiSon to secure
bonds amounting to $4,000 per mile,
Or a total of S1.60O,0O0, drawing in
terest at 6 per cent per annum. These
bonds were, by the act of Congress,
made a first lien upon the property.
The government, to aid in the con-
struction of the line. issued a like
amount ($1.6OO.0O0) known as Sub
sidy bonds" which, by the very terms
of the act of congress under which
they were issued, were made second
or subordinate lien to the mortgage
bonds of $1,600,000 first issued. A
large per cent. of the first mortgage
bonds were owned and controlled by
the government, and inasmuch as the
Central Branch had not paid the inter
est on the first mortgage bonds and
the principal had become due, the gov
ernment, being interested as before
stated, made a written demand upon
the trustees of the first mortgage,
that it should be foreclosed and the
line sold to pay the principal and in
terest on the first mortgage, and in
obedience to such demand, the trustees
brought the suit, and in 1898 a decree
was entered, finding that the amount
of the principal and interest then due
on the first mortgage, was over $2,-
100000 and which was decreed to be
first lien on the one hundred miles of
road which was ordered sold to salts
fy that lien, and it was sold for S2.-
800, 900. leaving a deficit on the first
mortgage. of over 100000
Matter of Public Record.
''All this is matter of public rec
ord. The question as to the rights of
the government thereafter was sub
mitted to Attorney General Griggs.
who lin 1899, decided that the gov
ernment, as the holder of the second
lien, possibly might redeem from the
sale, by paying the amount of the
first lien and accrued interest. Again
in December, 1912, certain parties in
Kansas took up the matter with the
President. who referred the matter to
the attorney general, who, in Janu-
airy, 1913, gave an opinion to the same
effect, and later, Congressman Neeley,
his resolution and the mat
ter was presented to the present at
torney general, who concurred in the
opinion of his predecessor.
Would Cost $5,5OO,0O0.
The principal and interest on the
first mortgage bonds amounts to over
S5,5OO,00 which the government
would have to pay in order to redeem
the property, to say nothing of over
5 Il 500, 900 improvements put on the
line, over and above the net revenues,
and if the opinions of three attorney
generals, under three different admin
lstrations, are correct, this is what
Neeley wants the gov
to do and take over one hun
dred miles of road, that can be dupIf-
Gated for less than one half it will
cost to redeem it.
II have no authority to speak for
the railroad company, but if I had.
[ would advise it, without any protest.
to accept the amount the government
would have to pay in order to now
redeem the property from the sale in
1898. The first one hundred miles of
the Central Branch has never earned
the interest on its Indebtedness, and,
operated as an independent line by the
government or anybody else, would
not nearly pay operating expenses
and taxes. The government would
have a good sized elephant on it's
hands, and most costly one at that.
God knows we have enough taxes
to pay. without adding this addition
al burden on the people,