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Chicago daily tribune. [volume] (Chicago, Ill.) 1872-1963, February 24, 1875, Image 2

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meditated. Ilia confession, made In German,
was translated, and Is as follows s
I left Hamnelfs linuw Jnrt after nnrpfr on the
evening of the murder, and went dircct.y to Homs-
Mpstl: 1 called M a nml drank twoglnrwof
beer; tint was nil I had that night; after leaving the
ralnmi I went to n grocery-* tore kept by a German
and pnrchnvcd tome cigars nml 5 cciitv worth of
wndy for Hie children; 1 don't know the name of tlm
florrJici'i er, »mt 1 bad been there several times; think
I tvns nt the store about u o’clock In the evening ; J'»l
«fl I wsa about leaving, It tamo Into my head that 1
MUST HATE HAMNETT'S MONET.
I thought ho had a great deal of it in inn house, and,
a* I frit po fiiteor nil at oneo In lay bead, I thought I
land ret it. 1 went dlroctlyto the house, hut dim t
know how I got them. X suppose I nnmt havo i«rn
Mil of my mind. After getting Into ibo house, I found
Mr. and Mr*. Hamnett had not coins homo. It occur
ad to tuo (hat. to get the money, I must kill the cull
firm, I found the ax In tho kitchen, and, taking Inst
wllh me, I weld up into the room «hovu the kitchen,
•rhero ilnhcri Hmllh and my»rlf slept. The Iwd was In
the corner of tbo room, ami |v.i\v that Hubert was
•hepiug soundly, with hi* face to mo. I look a posi
tion at die from of the hed, and
WITH ONF. PLOW KILLED THE JlOt,
He never moved ; I cant *.iy how it «;.« that the boy a
throat was rut. I may have struck him twice, hut he
never groaned. Afler the boy mȤ dead, I went into
the adjoining room. whero’.Ma and little Emma were
sleeping,—one in the corner, nnd tho other lu the hed
occupied by tho children, near tlm centre. Both of the
HUlo girls wore eioeplug. I struck Ida Ural, and aha
never moved.
I THEM RAISED THE AX
and slmck at Emma. Hho uttered a cry, and 1 hit her
a stjcoml time. Hhe did not groan again. After this I
went down stairs, and look* position just inside Iho
door of lbs room adjoining the kitchen, anil walled
fur Mr. snd Mrs. Hamnett to coma home. Tboy came
between (U and 11 o’clock, Mr. Hamnett camo into
Pio room first. I wan standing so that ho could not
see me, and 1 struck him from behind, using tho
same ax;
UP. FELL TO THE FLOOR.
Air*. Hamnett came rushing into tbo room, and, as
elm passed mo, 1 struck her, but did not kill her. She
shrieked once or twice,
“O OOD, JOHN 1
and then X struck her a second blow, which killed her
iiiHlantly. Mrs. Hamnett and tho baby were tho only
one* 1 hit twice ; the others wore killed with one blow.
1 nml the ax all tho time. 1 committed the deed lo
get Mr. Hamnett's money. I swrehert Mr. minuet! s
pockets, and obtained his pocket-book. It contained
only SIS in paper money. I found Mrs. Hamnett a
Ki-ket-bnok on the sewing-machine; thcro was only
cents lu it. I looked over the house, but
ALL TUB MONEY I OOT
wr.a tIS. The *llver ntnucy I sjxul yostcrdav I
brought with mo from Germany. I did not get it
from the house.
Sly only motive for doing (hi* deed wm to get tlio
money. 1 uavor bod any 111-fooling toward* any of
tUeliamnelU! I alwayo liked tbo little children, and
always bought them candy when I went to HoraeUcad.
The boy Smith ami I were good friends, and I
ALWAYS LIKED MH. AND MRS. HAMNETT.
1 did not flro the house, and it was not a port of the
plan to cover up tlio murder. When searching tho
bouse 1 pul on oil-lump tn the ■lttlng
room, ond, when nulling away from tho
building, it was overturned. 1 thought it would go
out; 1 aid not think tlio house would hum. As noon
as I left the building, I proceeded at ouco totbo rail*
road, and walked direct to Pittsburg; I stopped at tcv
eml places, but don't know the names : came over to
llttahurg, and wont to see my friend utter, on Venn
avenue. After leaving llalerV, 1 crossed over tho river
to Allegheny, and went to several breweries to got
work; purchased a now suit of clothes.
Tho munlorcr bang to-day who in hie 231h
year. Ho bad a mother (but no father) living in
Uormany. Tho above confouaton, stated to your
correspondent, waa truo, except that ho would
add that ho
GJIATIFIED I!IK LUST
nprm the child Ida. whom, she having made an
outcry, ho determined upon killing. Finding
that little Emma saw him, ho also killed her.
Tho noire bad awakened tho boy, whom then ho
also killed; and thou, tn order to shield himself,
ho determined upon killing Mr. ond Mrs. Ham
nett. Since tho reading to him of the death
warrant, the prisoner hod expressed no remorse,
but a regret that bo had to live ho long. Ho
took a groat interest iu reading a German Testa
ment, cent him by his mother.
CRIMINAL BRIEFS.
TRIAL OP A LAW-BOOK THIEF.
S,i<ctnl pitvateh to The Vhteaoo Tnoune.
Ottawa, 111., Fob. 23.— Tbo trial of Bird Blck'
ford upon an Indlclmout for bloating books from
tbo Supreme Court library was continued In tbo
Circuit Court to-day, and elicited couoidorablo
interest. Williams, tbo Librarian, swore in
substance that, on ono occasion, bo found Blck
ford in tbo library in tbo evening, at closing
tlmo. Calling tbo attention of'ono of tbo dorks
to tbo faat, bo dosed a certain window, fastened
it, and wont borne. Returning la tbo evening
later, be found tbo window unlocked, |
and on tbo following morning two vol- 1
umc3 of “Austin's Jurisprudence" wore
missing. Tbo "Eleventh Illinois Reports"
also disappeared. Port of a sot of
Illinois Reports were missed In August, *jVH.
They were from No. 1 to No.ll Inclusive. Throe
volumes of tbo law library woro also taken; also
ono volume of United States Reports, and eight
or nlno text-books. On another occasion tbo
witness was aroused from sloop by sounds of
somo ono walking in tbo library. Ho wont tbora
*nd board tbo front window go down, and thou
saw some ono get in a buggy and drive away.
Next morning, there were missed about
forty books, enumerated by tbo witness,
including somo Hlmola Reports. In tbo
middle of August, 1872, two wings
woro added to tb« Court-House. The library
room being enlarged, tbo books bod to be pack
ed in cases 5 carpets wero tacked over tbo cases,
and a night-watch pnt on. Later, as tbo build
ing reached completion, tbo watch was with
drawn, when sumo more depredations woro com
mitted upon tbo books, and another largo num
ber stolen, tbo witness giving tbo names. On
cross-examination, tbo witness stated that tbo
Library is open every day except Sundays, and
sometimes on that day. Tbcro woro two in
stances when books taken from the
Library bad been mysteriously returned. At
torneys commit books la tbo Library continually,
and mav raise windows lludiug tbo room too
warm, Alfred H. 'laylor testified to llndtng
Bickford and another lawyer in tbo library ono
Huuday, They bad come, when tbo door was
locked, through a window. William W. Colo, of
Callegbon's law-book bouse, Chicago, swore that
Bickford bad bought two lots of books from that
bouse, one lot consisting of volumes of the Illi
nois Reports. This was hi October, 1873, Ho
paid for the lot $105.60; considered Uno remark
able thing to llud books with names and marks
on them. Had bought books with the brand of
tbo Illinois Law Librory ou them from different .
parties, but remembered of getting none from 1
Bickford so marked. The bouso buys second
hand law-books. Witness also examined a lot of
books sold to Waite A'Clark, Chicago, Nona of
them had the library brand ou the them. They
wore Illinois Reports and other law-books. Mr
Ellis, of Chicago, sworo that Bickford had offer
ed to sell Illinois Reports In Chicago. Martin
A. Uowoil, Jr„ testified that, when ho first know
Bickford, in 1870, ho had very few law
books. Witness and Bickford wore at tbo
Supremo Court library in tbo spring of 1871—In
April—to look up somo authorities. Bickford
took down a number of text-books and laid them
on a long table at tbo end of the library, next to
(bo front entrance, under a window, Bickford
told witness that those goods are the propoity of
tbs people of the Rtato, and for tbo uso of tbo
bar, and, as all tbo lawyers of Ottawa bad sup
plied their libraries from tbo Supreme Court, bo
did not seo why bo should not do likewise j that
be proposed to mako a raid upon tuts library;
tbo witness declined. Tbo witness further
swore that on a subsequent time, next day, bo
saw books at Bickford's oflico bearing tbo stamp
of tbo Illinois Law Library? that Bickford
showed Uira then ope book which ho (Blokfurd)
swore was worth its weight In gold, U being tbo
Eleventh Illinois, and out of print... Witness
testified to seeing a carpet-sock full of law
books tbcro, minus backs, and to have seen him
cutting backs off from books and burning
tbo same, tbo bocks bearing the Htolo
Library stamp, He swears that bo
saw lu Bickford’s possession books from No, 1 to
No, II of the Illinois Reports, Tbo witness also,
when Bickford showed tbo Eleventh Illinois,
Eoiutod to the stamp of tbo Illinois Law Library
umod In tbo back, and sskud if bo (Howell)
know of any way to got It extracted or taken out.
Witness replied "No." Also that (bo witness
saw Bickford toko to Chicago a lot of books with
out b*cka, and In s couple of weeks a lot camo
buck by express to Bickford. Ou tbo package
being opened, Bickford remarked, to the witness,
"This U o much better and safer way— having
them robouud—than to try to erase the brand. 1
The witness bad watched these things, and kept
account of them, to use in future, as be bad
legal business with Bickford, and, having been
swindled and beat put of money by lawyers be
fore, took those memoranda (o uso, but bad lust
tbo papers, having destroyed them, thinking
tLcm of no further use.
THE BOY MURDERER.
Spteiat Uitvutch to Uu Xeuri vr* Utrail,
jjobtox, Pob, 20.—The rare spectacle of pro
conociug the dcath-wmtepco upon a Juvenile
tuurderur ww witnessed Id the Supreme Court m
Uili city this afternoon. The unfortunate of
feudor ru J«e»e Pomeroy, the boy flood, wbo
vm recently couTlcted of tboipurdorof ahttlo
boy named UUUo, and yUo has ahw confessed
to the murdering of and (ho otnelljr butchering
of n httlo nli l named Katie Curran. lie la also
the panto youthful llond who tortured so many
cliildroti in the Buburbaof Boston a year or two
fci jjv direction of the Court the clerk asked the
prisoner If lie had anything to flay why sentence
of death should not ho pronounced uuon him, to
which ho replied dißilncttylhatho had not.
Judge Gray then addressed the prisoner, say
ing that ho had been tried upon a charge of mur
der ; (hat ho had been defended by able counsel,
who had dons everything; possible lo aid in bis
defense; be bad had tbo process and power of
the Commonwealth to further Resist him: but.
after an tmpaitial trial, the Jury hat! found hint
guilty of murder in the first degree; the verdict
being based not upon the Idea that the murder
watt committed with premeditated malice, but
under circumstances of extreme ferocity and
cruelty, lie would not allude In detail to these
circumstances, which could hut cause him pain*
The result of them would bo an example to all
others who should hereafter be disposed to
gratify a morbid love of cruelty, bpon the
verdict roudord, the Court had no discretion in
imposing the sentence that is fixed by the stat
ute. Accompanying the verdict, the Jury had
sent a recommendation of mercy, hut that rec
ommendation could havo no effect on the Court.
That would bo soul to the Executive of the Com
monwealth; but whether ho would yield to its
pravor was impossible for tbo Court to deter
mine. His Honor thou said It was his duty to
remind (ho prisoner of the importance of turn
ing ids thoughts to an appeal to the Eternal
Judge of all hearts, and to make preparation
for the doom which awaited him. ,lodge Gray
theu imposed the only sentence formnrdorintho
first degree—that the prisoner ho remanded to
the custody of the Sheriff, and bo kept in close
confinement until such time ns the Executive
may, by ids warrant, order when ho shall suffer
death by hanging by the neck.
In pronouncing the sentence Judge Gray was
very much affected, though the fatal words wore
spoken In a clear voire,
D,'I'AUU ,11 «, UIU»t
Tho person in tho court-room who seemed to
appreciate tho solemnity of tho occasion tho
least was tho doomed boy hitnttolf. Ho pre
served that calm, stolid, ami indifferent manner
which characterized his appearance during tho
trial,—not moving a muscle or seeming to care
for tho fate which awaited him. After tho
soiitouco ho was removed to tho Jail, whoro he
will remain until tho warrant of Gov. Gaston is
Issued. Efforts for a pardon will probably bo
made, but it is doubtful If it will bo granted.
MURDER AT ROCHESTER, IND.
Special Corrruvonilenoe of The Chicago 'l'rihune.
HociiESTEn, lud., Feb. 21.—Last night, about
10 o'clock, our usually quiet town was thrown
ipto a fever of excitement by tho report that
John 8. Wallace (sou of Bobcrt Wallace, propri
etor of tbc Wallace House, at tbla place) had
been murdered at a bagnio kept by one John D.
Van Dckarr, in tho northwest part of town. In
quiry revealed tho fact tiiat. about half-past 9
o'clock, John 8. Wallace, iu company with Amos
Bolby, Kin Green, and Dobolt, had gone
there in a sleigh, and, upon being refused ad
mittance, Bolby kicked tits door down ; and,
when tho party had not into tho sleigh propsro
to leaving, Van Dokarr emptied the contents of
one barrel of a double-barreled shot-gun at tho
parties.—the load taking effect lu Wallace's left
side and one hall striking Uolby iu the hip. Im
mediately after the shooting occurred, the par
ties drove to tho Wallace House, whore young
Wallace breathed hla last.
A party, headed by Sheriff Moon, Constable
Stiles, and Marshal .Mackey, proceeded at once
to tho Van Dokarr House, succeeded iu captur
ing Van Dokarr, his wife, and two courtesans,
and murchcd them to the uilico of F, 11. Herman,
J. P., who adjourned to the Court-House. Van
DeUarr waived au examination and wont to jail.
The worncu wore coniluod in jail also, and held
as accessories to thocrimo. After the arrest was
made, such exclamations as “Hang him!"
•• Siioot him! •' “ Burn his house I " etc., could
he hoard uttered by our heat citizens. Selby ot
present is doing as noil as could bo expected.
The murdered man was but about U1 yearn old,
and wan connected with some of tho heat fami
lies of the place.
A DETECTED FORGER.
Special DUmtch la The Chicago JVRiiifK.
East Hacksaw, Mich., Tub. 20.—1’. 11. An
drews, a member of tho Arm of Allou, Andrew*
£ McCliutock, iQßUrnuco agents of tins city, has
been detected forging indorsements to paper and
has admitted the charge. Eleven hundred dol
lars of that class of paper has al
ready come to light, and an examina
tion of the books thaws that Andrews
swindled the other members of the firm to tho
extent of some 65,000. Andrews’ connection
with tho firm has boon severed, but it is under
stood no criminal proceedings will bo made,
lie has resided hero for several years, and tho
developments create much surprise.
INFESTED WITH OUTLAWS.
•Special Diepafeh to The Chicago TVtbim#.
liXronTK, Ind., Fob. 23.—Again our elty is In
fested with a sot of blacklegs and incendiaries.
Seymour's foundry was fired lost night by some
miscreant or miscreants, and but for tho proulpt
action of our firemen would have now been in
rums, tioveral houses have been entered, but,
as far as known, with no success to tbo wonld
lio robboiu. Tho city authorities are doing all
in their power to protect tho citizens.
OARROTERS ARRESTED.
Special Dmxilch to The Chicago Tribune.
SrniNarjKnu, 111., Fob. 23.—Tho two men who
garrotud and robbed Mr. James L. Hudson, a
hardware merchant, on a public thoroughfare in
this city last night, it Is supposed, have both
been arrested, One was arrested by the police
hero last night, and tho othor at Jacksonville
this morning. Tho letter, when arrested, hud
on his person a watch corresponding to the one
lost by Mr. Hudson.
MURDERED AT A HOUSE OF ILL-FAME.
Special Duvatch to The C’Meant Tnonnt.
Louanspout, lad., Fob. 23.— Saturday night,
at Ilochcster, Ind., 23 miles north of here, John
J. Wallace, proprietor of tho Wallace House, of
that place, was shot oud killed by John D. Van
dorcarr. keeper of a house of prostitution, Into
which Wallace, with three others, had been try
ing to gain admission. Considerable excitement
prevails, with sumo talk of lynchiug Yaudoruarr.
PETTY LARCENY,
Special Ditr-aieh fa The Chuaao Tribune.
Duoyuus, 0., Feb. 23.—Oliver Tocher and his
son Frank, the last two of tho Pittsburg, Fort
Wayne & Chicago car-robbers, pleaded guilty to
potlt larceny, and wore sentenced to pay a
lino of *ls each, and to he imprisoned in tho
County Jail tou days.
ARREST OF COUNTERFEITERS.
Boston, Feb. 23.—William and George Young
wore arrested at Plainvillo, yesterday, charged
with uttering counterfeit United Btatcs cur
rency. At the house of George wore found
tlatos aud dies (or tho manufacture of (fac
tional currency; also plates ror printing *SO
National Bank notes.
MURDER TRIAL AT JOLIET.
Special Dltpokh fe The ChUaao Tribune.
Joukt, 111., Fob. 23.—The easo of Henry
Westphat, who was indicted (or murder at
Beooher, Will County, Hi., a short time since,
has been on trial siuce yesterday, aud was given
to the j my to-day.
CUT HIB HEART OUT.
St. Louis, Mo., Fob. 23.—The Ulobf'e special
from Kansas City says an old man named
Donahue, 70 years of ago, got into an altercation
with his son yesterday about some corn, aud out
his heart out with a knife.
MICHIGAN ODD-FELLOWS’ INSTITUTE.
Spefial eputeh to The CKitiWO SVibimr,
X.ANuiBO, Mluh., Feb. 23.—Tho Commlsslonore
of the Odd-Fellows' Institute In this city report
to the Grand Lodge that they are solicitous o
placing before all the lodges of tho Htate a his.
Tory of tho Institute. They deny that they are a
clique to pervert the Order to selfish ends, and
demand a full investigation of the charges made
by subordinate lodges. As tbe work of building
E regressed it became necessary to borro«r*l0,000
y mortgaging the property. To raise this, it
became necessary to asses* each member *l,
which has oomo m slowly, aud tho Commission
ers have hoop embarrassed. The amount drawn
from the Grand Lodge during tbe year is *7,017.
There is due the contractor a balance of «1,413,
and they ask for *5,000 or *O,OOO more.
CHECKERS.
Bfteiai Diipatefi fat Chicago Ttiiunt.
KatnuKUV, 111., Pel). 23.— Wyllio, tbe cham
pion checker-player, left hero to-day for Lafay
ette. Prom tAfayotto he goe« to ludiauapolls,
Cincinnati, and Buffalo, lie played about 180
I'aiuca duriug hie wook'aatay lu tlda city, aith
Messrs. Ponvule (the Illinois champion), ftimis,
W. O. Swaunoll, amV others. losing a game*
(Ponville 3, Hwaunoll 1), and JO draw* (Pouyilje
13, Ktitiia J, Thompson •).
THE CHICAGO TRIBUNE: WEDNESDAY. EEUHUARY l i 4, 1875,
THE RAILROADS.
Ulsiory of (he New Credit
SloltilSer.
How the Eiver Roads "Wore
Loft Unfinished and tho
Funds All Spent.
Causes Which Led to the
Present Railroad War.
Early Antagonism of tho Baltimore
& Ohio and Pennsylvania
Uoads.
Meeting of the Stockholders at the
Burlington and Quincy-
Current Rumors.
Constitutional Requirements ns
to Dii’ectors of Illinois
Itoiuls,
Fresh Complications Between tho Erie
and Atlantic & Great Western.
THE NEW CREDIT MODILIER.
discoveries op tub bondholders or tub c., o. a
Q. LEASED tINES.
Sptfial Corrttvotultnce <\f The Chicago TYibune,
Boston, Mass.. Fob. 19.— Thn recent discover
ies of tho unfortunate ami deceived bondholders
of tho Chicago, Dubuque A Minnesota, and tho
Chicago, Clinton & Dubuque Hoads, familiarly
known as the “Hiver Hoad," marks tho end of a
remarkable ora in railroad construction,—an ora
which was only possible under circumstances
which cannot occur again. Tlio building of such
rondo was tho outgrowth of tho land-grant sys
tem which has at last got Its death-blow,—a sys
tem which permitted tho building of roods far in
advance of the demands of trade. and solely for
the purpose of getting the lands which wore
given to tho owners of tho franchise,—a
franchise which iu itself represented tho
only assets of a corporation whoso debts were
never loss than $25,000 a mile, and as much
more os tho managers could got anybody to
trust them for.
Until Wednesday, no statement of these roads
bad ever been famished to any one except the
Directors. Then the bondholders and tho pub
lic got thole brat inkling of tho condition and
standing of tho Companies.
TUB CHICAGO, LUDCQUE A MINNESOTA
in tbo older of tho two corporations. It was
originally incorporated iu January, 18GS, as tho
Dubuque & MacGregor Hallway Company, tut
tho title was changed in February, 1809, to the
Dubuque. A Minnesota Hailroad Company,
and, iu January, 1871. to tho Chicago,
Dubuque A Minnesota Hailroad Company.
This road was authorized to Issue $lO,-
000,000 of stock, bnt not ono dollar
was over paid In, and it was intended to run
from tbo City of Dubuque, in lowa, northerly to
the Town of* Winona, in Minnesota, along tho
west bank of tho Mississippi Hivcr, but actually
runs no farther than to tho Town of La Crescent
in that State, while a branch called tho Tnritoy
Hiver branch loaves tbo mala stem about 27
mllaa from Dubuque, and runs up tbo Turkey
Hiver in a northerly and westerly direction
toward the Town of Fayette. Tho distance from
Dubuque to La Crescent on tho main line is
HR miles, all of whiob la built with 13.&1 miles of
siding iu all. Tbo length of tho Turkey Hiver
branch is about 63 miles, of which 10 miles is
built and .47 miles graded. Tbo principal con
nections of (his road are aa follows t At Du
buque, with tho Illinois Central and thence, by
way of Forrester and the Chicago A lowa Half
road wlih tho Chicago, Burlington A Quincy. At
La Crescent with the Minnesota Southern and
tlio Milwaukee <fc fit. Paul. At Fayette it was
intended to connect with the lowa Bactflc, which
is as yet only partially built.
Tho Dimeters of (his read as veil as the lover
road up) to Jauuary, 1873, vero J. K, Graves,
President. aud a Board of Western mou. In
Jaouary, 1873, tho following oQicera wore oloot
od: President, J. K. Graves, Dubuquo ; Di-
rectors. J. A. Bhomberg, Dubuquo j J. P, Joy,
Detroit j J. M. Walker, Chicago; Nathaniel
Timor, Sidney Bartlett, J. W. Brooke, 11. 11.
llunuovoli, J. A. Burnham, Boston ; Treasurer,
The road waa built by
J. N. Denison, Boston.
lowa a inesißHiFPi ooNsmucrriotf company,
under contract dated Feb. 10,1H71, tho provisions
of which vote that tho Construction Company
should “ construct. Iron and equip " tho rood
from Dubuquo to La Crcscont, and also tho T.
Bivor Bronch, tho equipment to bo tiret-class,
and should receive in payment §25,000 per mile
iu bonds, not over 437,500 per mile in stock, and
11 all subscriptions, tax aid, donations now or
vhlch may hereafter bo made.” tho Construc
tion Company to build at Dubuquo a repair
shop, aud to supply it with necessary machinery
and tools. “ Tho stock and bonds la bo issued
and delivered as faat aa the Construction Cora-
panv may from time to timo require tho ex
penditure by tho Construction Company of its
assets, including Us capital Block of $300,000 in
the construction of tho road, in ease of tho As-
sets being Inaufliciout to complete tho road, to
release tho Construction Company from all fur
ther liability, aud tho llailtoau Company receive
tho road in Us unUnished stale. Tho parties to
this contract vero tho Chicago, Dubuquo A Min
nesota llallroad Company, represented by West
oru Directors on ono side sod tho Construction
Company on tho other, represented by those
sumo Directors, tho Eastern and Western men
each holding 7-H of the stock. Under tills con*
tract the bonds of the road voro sold at IK> cents,
under tho direction of J. N. Denison one, of the
Directors of the railroad, a member of the Con
struction Company, and Chairman of tho Board
ol Directors of tho Chicago, Burlington A Quincy,
and tho proceeds turned over to tho Bresiuout of
tho Construction Company. Mr. J. K. Graves,
from time to time as he called for the money.
Mr. Graves) had immediate and Mr. J. B. Joy
tho general supervision of tho work. Mr. Graves
turf $173,009 of tho money rained hv the ualo
of the bonds of tho river roads to help build a
railroad in which ho was also interested, the
lowa i'acillc, which was intended to nm from
Fayette, Die terminus of the Turkey Blvcr
Brunch, across lowa to Fort Dodge, a distance of
133 miles. This sum has never been returned,
ami still remains a claim against the lowa racing,
with collateral security of U»o lowa Facilio bonds
of a par value of 4291,000. This claim, however,
was assigned before tho appointment of a De
ceiver to tho Chicago, Burlington A Quincy as
collateral security for tho debt duo the Chicago,
Burlington A Quincy by the Bivor Boad, fur
tho payment of the coupons of June, 1373. apd
(or other purposes.
The lower road, or the
CIIICAOO, OLIMTOS * DDBDQOS,
rims from the City of Dubuquo southerly along
tho west bunk of iho Mississippi Bivor tu Clin
ton, in lowa, a distance of 39 miles. Of this dis
tance 43 miles aro built and 13 graded, while
(hero are 3 miles of siding \ but tho parr that la
merely graded consists of three detached por
tions, ono of ous-haif mile in tho City of
Dubuquo. where tho tracks of tho Illinois
Central are Used; another of 6or 0 tmlos
near fiabula, where the tracks of Babula.
Ackley A Dakota Bailruad aro used; and tho
tuird of 7 miles near Clinton, where tho tracks of
the lowa Midland (under tho control of the Chi
cago A Northwestern) are used. The principal
connections of this road ore at Dubuque with tho
C., D. A M. aud tho Illinois Central, and at
Clinton with tho Chicago A Northwestern. The
want of a bridge across Iho Mississippi at Clin
ton (tho only bridge at present built being In the
bauds of tho Nortunestcro Boad) prevents a con
neoUou being mudawilhtho Illinois Grand Trunk
Bailruad, one of tho branches of the Chicago,
Burlington A Quincy. The want of this opppyo
tlou deprives this road of almost all the advan
tage which it might have pained from tho traUio
auaiautos ol the Chicago, Burlington A Quincy.
This road was originally organized as the Du
buquo, Bellevue A Mississippi Uailway Company,
to build a road to the Town of Bellevue, but its
name and purpose were changed, aud it became
known undents present title January, 1379.
The road woe hailt under a contract with the
JUVfctt BOiO OOMI-AMY,
of which til a Kiatoru Dirootorooauod tM4 of tho
Htook, uudor an amended contract of July %
1871, which provided that tho Coualructwa Oon-
pany shall eonitruet, bridge*. He, iron, and sntt
al'ly e'i«*.ip lire road from Dubuipio to t'llutou,
m iiig parallel roads when by ho doing Urn con
struction of ilia road “can bo obviated," and
for the supervision nnd management of said
construction amt Iho further payment of tho
mnu of $150,00(1, (lie amount of its capital stock,
tlm Construction Company shall rocelvo all
bonds and slock of tbo llaitroad Company IhhuoJ
mid to bo issued. And if tbo siesta nro not
enough to complete tho road, tho Construction
Company shall ho relieved from fiuthor obliga
tion and* shall reooivo the laud grant, stock, and
bonds. That is. Ibo contractors wore lo receive
nearly 40,000 acres of laud at from s.l lo $0 an
aero; they were to havo Mi tbo bonds end
stock of tho road Issued nnd to ho issued; and if
they found that their capital wan exhausted be
fore tho road was completed, they worn at lib
erty to abandon it. 'Hint was
A CONTRACT NOT TO ROILD THE ROAD, HUT TO NOT
mitLD IT.
Tho debt of tho roads as tboy stand to-day Is
not easily ascertained, but tho following may bo
considered an approximate statement:
llnmled debt 0., 11. A M.
Bunded debt C., O. A 1).
Total bondeddebt ..$3,025,000
Due U., 11,1: Q., caeh advanced secured by
land grant..;, ...$ 60,(XX)
Due O. 1). ft Q„ cash advanced secured by
olatm on the lowa I’arillo 0V,072
Duo C., H. ft Q., cash advanced eouifons ac
enred by claim on Iho Jowa Pacific 920,480
Duo 0.. I), k Q., work on Turkey Utvor
ilranch, somirod l>y moctiaiile’A lien 101,000
Duo C,, IJ. U Q., taxes 8,000
Total I 61 i,m
Dno C-ir iVmi'iuv aUil nfcurrd by lion ou
ohm—oM .luoUH C>m»tnit;ilo<t Company.. 109,000
Other Uiullng ilobl glrcu by J. M. Walker.... CU.OUO
Total, any
WUKJIB THE E4RNINOB WENT TO.
Thonctonrniu/r* from January, 1N73, lo the
timo of (liq appointment or tbe Heooivor appear
by the trio) balance of Jam JO, 1870, to have
been oh followw
C., I), k M
0., C. Ill)
All those earnings wero paid over to Mr. J.F.
Graves, and wont to pay tliu debt of the Con*
struotlon Companies.
UOWTUB OUIOAOU, IIUIU.IN(1T0K A QUIKOT IS IK-
xr.nr.sTKi).
It should bo said to tho credit of Mr. Joy that,
of thirty-eight different classes of bonds put
upou tho market since ho has been iu the man
agement of tho Chicago, Burlington k Quiucy,
thoso aro tho first on which interest has uot boon
promptly paid. In support of his statements as
to tho economy with which thoso roada havo been
built ho gives tho following table of roads built
by tho Chicago, llurliugtou k Quiucy:
A'amegffood. .icfuof coif. Ltntjth,
American Central.... |I,U7.VH3.is 60V {37,008.43
Dixon, I’eo. ft lUn,.t DM.orto.flt Ut.bBT.SU
Canhage h Bur ; «2:1, 790.33 :«i*f ‘M.7UO.W
HI. Grand Trunk.... 1,451,M.»f Sii.UT.SS
Krohuk k Bt. Paul... 1,478,ftHT.1f 42 45-100 34,732.10
Ott., Oiw. hF. Itivcrl i,.m«.M.oy imf S-'i,7Hrt.cn
Peoria k Hannibal,. .1 0M.y03.il 32.Hf 6U.Ui3.U4
Quincy A Waruw...| 1)32,343.43 113,43,',18
iAvtraflf.
n. kM.R. In Neb...l 8,f178,83X89 HU 00,7.12.10
C„ I), k M. H. It M.fiW.BOO.OO HU 2.5,317.07
O. C. kD. It. R 11,4 Ui ( (H,O.OO CO 24,103.00
irkoy Ulvoi
•Including $700,000 to finish Tu
tluolmling |OO,OOO for complctfn
.Wo—TUo cost of tbo Inst three i
equipment and nucblne-sboin. Tl
nwiln to Chicago. Burlington k Q
the road only, they having uo equl
thupi.
iff.
roads above Includes
ho cost of tho branch
2uluoy above, la for
iproent or machtut-
I’rom time to time, for twenty-five years, that
Company has boon compelled to put bonds upon
the market lu ardor to control roads building
across aud parallel to it, for the purpose of tak
ing away its business. Those wore 8 per cent
bouds, aud wore taken at HO. Those roads were
projected, oxtoadiug 200 miles north and 200
miles west Bom a point 80 miles above Du
buque, and would command, ultimately, an im
mense business. Thu object of tbo Chicago,
Burlington & Quincy Company was to secure
that business for itself. Tho plan was presented
to tho Board of Bivectore of the Chicago, Bur
lington k Qulncv, and the reasons why they
should give assistance wore fairly presented.
Statements of tho amount of hufllnosa, and tho
amount of money raised in the West,were given.
Tho result was a 40 per cent traffic guarantee by
the Board. These constructions wore then
formed, and Mcssis, John A. Burnham. Sidney
Bartlett, Nathaniel Thayer, John W. Brooks, and
J. N. Dennison were given seven-fourteenths of
the stock in one company and nine-fourteenths
in the other. Then, Juno 7, 1871, J. N. Denni
son, Chairman of the Board of tho Chicago, Bur
lington .V Qulnoy Directors, Relied a circular of
fering to tho stockholders of that road 91,000,-
000 of tho bonds of the Chicago, Dubuque &
Minnesota, stating that tho Company had re
ceived large local contributions, lu audition to
tho stock payments, to aid in building the road.
On March 7,1872, the second circular was issued
from the same office, offering to tho stockholders
of tho Chicago, Burlington A Quincy $1,81)0,001)
of tho bonds of the Chicago. Clinton k Dubuque,
and $1,000,000 of those of the Chicago, Dubuque
and Minnesota, ami stating that (ho main line of
tho latter was to Uo opened through early iu tho
season, and that “ business on tho portion of the
road In use fully equals tho expectations enter
tained before tho road was commenced"; and
that both classes of bonds uto " secured at tho
rate of $25,000 to tho mile of well-built roads on
favorable routes, with business connections In
suring tholr success beyond a reasonable doubt;
and, with traffic contracts, their securities would
seem to be very desirable for investment."
. At tho time when tho first circular was issued
tho Chicago, Dubuque k Minnesota was subject
to the very onerous and oxtraor dinary- contract
heretofore spoken of, and the amendment of a
like character had been made to tho contract on
tho Chicago, Clinton & Dubuquo lluad before
tho second oirouior was issued. That is, while
the ciieulars end bonds themselves limited the
security to a mile of road for every 925,000 of
houds, these contracts were In fores which wonid
oblige the railroad’corporation to accept tho
road if thoro were but ainllu of road to every
$60,000 of bonds. Gould those Directors of tho
Chicago, Burlington & Quincy, who seem to havo
boon at that tuno members of the Cmiotrucnon
Company whioh hold thouo vary contracts, have
been ignorant of the existence of tboso contracts
and their provisions ? Again, iu spite of tho
circulars aud tho bonds themselves limiting tho
issue to 325,00(1 a mile, tho Directors of tho
Chicago, Burlington it Quincy and of tho river
roads allowed uu Issue to ho mod? of much
more thau that amount, without taking the
necessary precautions to insure tho building uf
tho road, or tho application of the money to that
purpose, lu snort, bonds for 837 miles of road
were issued, while of this distance 55 miles were
only partially graded and without rails when ac
cepted by tho Ballroad Company. Thoro wore
lu addition, however, 16K miles of sldo-tracka.
THE DEFAULT ON THE BONDS.
The coupons wore paid regularly through De
cember, 1878, tho «smo being paid partly from
tho sale of tho bonds themselves, and partly
from the receipts of interest on money and
ponds on hand but not needed for nao. In tho
cave of the Chicago, Dubuquo A Minnesota tho
amount paid (or interest froai tbo sale of bonds
was $372,01)0. while the Chicago, Clinton A
Dubuquo paid $03,000 of interest from the same
source, The first default would havo occurred
iu Juno, 1873, hut the Chicago, Burlington &
Quincy advanced the money to pay this coupon,
or purchased the coupons of that date, and thus
the period of default, as for as the bondholders
are concerned, was delayed till Deo. 1, 1873,
while tho Company still owes (or the coupons of
Juno 1.1873.
Oct. 1, 1874, tho Chicago, Burlington A Quin
cy took uouacßsion of the river roads, it being
expected that tbo arrangement for funding cou
pons aud teasing the road proposed laet autumn
would he satlefautorliy carried out. Though this
arrangement fell through, tho Chicago, Burling
ton A Quincy still retained possession of the
roods till tbo appointment of the Becelvur ou
Jap. UorlO. 18y6, During this nossosetou by
tho Chicago, Burlington A Quincy that Company
spent upou tho Turkey lilver Branch, in grading
and bridging, SIOI,OOO, for which they consider
that they hold a mechanic’s hen upon that por
tion of the road.
Tho result is, (hat some of tho Directors of tbo
Chicago, Burlington A Qulnoy, who were associ
ated as members of the Construction Companies,
allowed Mr. Craves to misappropriate money
enough to have completed and equipped tho
roads handsomely, instead of shabbily aud insufi
flowntly as at present, and, further than that,
have virtually pocketed all the earnings of the
road since lUTu.
THE CHICAGO. BURLINGTON & QUINCY,
AaKPUbUKSTUro QV TUB BTUUUIIOLUKUS.
The meeting of the stockholders of tho Chica
go, llurliuglon Ai Quiuejr Hailroad which will bo
held at the oftico of the Company to-day prom
ises to ho an excited and meet eventful one.
Tito light against the present Directors com
menced at Dosttm by Metiers. Forbes end Orle
wold will bo continued at this meeting, The
parties are now evenly divided, and It la hard to
toll which aido will win the day* BUwo Messrs,
Forbes and Uriswold havo issued their card to
the atookhotdera asking for their proxies, they
have received a Urge number, and it U predicted
In some quartern that they will succeed, Hlioulti
this lm the on--', tho inanagouioniot ihoChlcagn,
Burlington A Qnlnoy will pass into entirely. dif
ferent hands, ami Mr. 0. R. Burkins, for
merly Oimetiu Superintendent of tho IhtrUitgum
A Minnunri llivor Unilroad, m mentioned for tho
position of President, in place of J. M. Walker,
iltn present incumbent. But, net only tlio Chi
cams Burllniitnu A Quincy Unilroad will be af
fected bv a victory of the opposition, but llio
Michigan Contra! Railroad, which linn nearly tho
name Directors, will also receive nn overhauling.
It in claimed by pome that Mr. Joy linn already
written out hln resignation, and will band it to
the Director* m a day or two. in cane thin ru
mor proves true, Mr. J. W. Brooks, former
President of this road, or aomo oilier Boston
man, will, H In rumored, bo elected to tho vacan
cy. Both tho Michigan Central and tho Chicago,
liurllnglon A Quincy aro mostly owned by Bos
ton men, ami It is said (hat this light
wits inaugurated for tho purpose only of
ousting tho Western mon who have now
control of them, and tilling their places with
Ucitom men, oud It is therefore styled a light of
the Bast against the Went. Unilroad men and
capitalists look forward to the result of to-day's
mooting with uoasual interest.
.*(,(21,000
. 1,800,000
THE RAILROAD WAR.
SPECIAL PEATDUKB OP THE CONFLICT.
o‘iwrtd Correefxuulenee of The Clucaao Tribune.
Baltimore, Feb. 20.— One fact tbo railroad
war makes vividly conspicuous! tho easy mas
tery of tbo situation which Us remarkable finan
cial condition gives to tho Baltimore A Oulo
Ilailroad. This is the moro noticeable inasmuch
as it is exorcised in spite of grest disadvantages.
It, therefore, indicates tho prestige and iniluooco
which tho Baltimore A Ohio Bead will obtain
when these disadvantages aro removed. Tbo
present contest Is not of special importance in
.$ 071,000
it self, being simply a renewal of tho struggle of
last year, and will probably bo terminated shortly
by a similar accommodation of interests. Its
phases aro Interesting as Indicating tho respect
ive aims of tho great antagonists and tho meas
ure of buccobs that rosy bo oxpooted to follow
thair efforts. Some review of occurrences an
tecedent to tho present war will show how
IMfliAOAnr.E IS TUE HOSTILITY
. H2.n0.2i
.$370,250.(10
between thorn, and will aooount for tbo boat and I
vigor with which tho present content le carried on. I
As is frequently pointed ont, the financial pol
icy of tho Baltimore k Ohio Hoad is unique in
railway maungomout. In other roads, invest
ment of earnings is represented to tho stock
holders by some certificate of indebtedness, such
as a stock subscription. In this way it becomes
an increase of capital on which dividends must
ho earned, or, lu other words, it is railway
••water," The stockholders of tho HaUlmoro k
Ohio Hoad content themselves with moderate
yearly dividends, and surplus earnings go into
improvements which facilitate and cheapen
transportation. In this way investments havo
been made which now aggregate a surplus
fund of over 98a.QOO.UUO. and widen,
although productive capital, is a non-IntoroHt
boarmg debt, tho stockholders finding their
return in tho increased value of their
stook. Under tbo policy, of tho Pennsylva
nia and other roads, this vast sum would have
hcuu added to capital account, and an obligation
would havo boon Inclined to return dividends
upon it. Tbo ptlnciplo of railroad economy
noon which the financial policy of Mr. Garrett is
based, and tho value of which tbo condition of
his Company demonstrates, would many years
ago have been applied to tho
Branch.
SOLUTION OF TUB I’IIOULKM OF CHEAT* TBANSPOII-
TATIOS
had not tho paralvsis of war struck down his
Slum), Upon the occurrence of thin event nil the
oitimoro k Ohio Company could do was to
make tho most ol present advantages in order
to fit itself for renewed exertions after tho War
should cease. At this time the only railroad
communication to Washington was by tho Wash
ington brunch of the Baltimore k Ohio Hoad, and
this monopoly was very profitable to it. It
charged higher rates for tho transportation of
troops than any other railroad in tno country,
aud tho constant movement to aud from Wash
ington of the hundreds of thousauds of people
having business at the Capital also poured
ouormous revouuos into tts treasury. Its west
ern connections were frequently broken by the
vicissitudes of war, as tho lino of tho road passed
through tho northern portion of Virginia. This
placed it at a disadvantage in competing for
through business, which was thrown largely
into the hands of the Pennsylvania Road. That
Company, in ardor to nrnko a Southern con
nection. scoured tho Northern Central, running
from Harrisburg to Baltimore, and thus com
pleted a railway system in the Northern States
extending as far south as Baltimore. The Balti
more k Ohio Company, naturally desirous
of retaining the monopoly it enjoyed,
and which the ravages of wur on its main scam
made necessary to it, refused to enter into any
through arrangements with tho I’cuusylvaula
Hoad. It would uot permit tickets to bo sold or
baggage checked from points on the Xhmusyl
vania Hoad over Its road, and it was not until
July 1, 18t>8, that a contract was made by which
through rates wore established between New
York and Washington.
TUB mTTKU ANTAGONISM
between the Pennsylvania Hoad and Uifl Balti
more .V Ohio had its origin iu the disagreements
consequent upou the above condition uf aifairs,
Hovur&l brushes between tho two Companies,
terminating in one instance in an open rupture,
intensified tUo feeling of hostility, and detor
nmodßcott upou a scheme of competition, Napo
ooulo in itu magnitude. Under bis auspices the
Baltimore A Botomao Ballroad was built,
ostonsiblv a local railroad flora Baltimore
to Pope's Creek, ou the Potomac Hirer,
with a lateral branch to Washington. Hut, as
the counties which had Invested their money to
build tho road from Baltimore to Pope’s Crook
booh found out, the road was virtually tho
Washington branch of tho Penutiylvaula itood,
aod was tho coouecUug link lu the Southern
routo controlled by that road. A tunnel a inllo
and a half long was constructed at an expense of
nearly $3,000,000, running through tho uorthoru
seotiou of tho city, under tho Lous of streets, In
order to oouocot tho now road with the Northern
Control Hoad, already controlled by ticott. The
Cautou Company, of Baltimore, had at tho satno
tlmo constructed the Union tuuuet and railroad,
in order to make their lands ou tho oast side of
tho harbor of Baltimore a tidewater terminus for
railroads entering Baltimore from tho north and
east. By means uf this connection, direct rail
communication from New York to Washington
and the Bouth was established via the Baltimore
A Potomac Hoad. By those gigantic enterprises
the Pennsylvania Bond
OBTAINED SOU* BUrEBIOU ADVANTAGES
over its rival, as, of the 888 miles of road he
twcon Woshmgtou and Now York, it owned tho
DO miles of road between Philadelphia and New
York, as well as having its road between Balti
more and Washington, which latter was os much
as the Baltimore A Ohio possessed. The Phil
adelphia. Wilmington * Baltimore was and al
ways has beau neutral, aud the Union Ballroad
is merely a toll road, open to all roads who may
oaro to ueo its tracks. Poaaeuslng (his great Ad
vantage, Bcoft thought that ho was master of
tho situation, aud iu December, 1873. the Penn
sylvania Hoad
CLOSED ITB fdUB FROM PHILAPKLPUIA TO MEW
YUUIC
against tUo Haltimoro A Ohio Hoad* The re*
suit Hu a war which conclusively demon
strated the gigautlo strength of tho
Baltimore A Ohm JU*uJ. Although it had
not then completed Ua lino to Chicago* and
could uot sliiuo at that sensitive a|>ot of tho
I'epiiaylvauia Hoad with much effect, rate* to
all points in tho West reached by it wool Jump
ing down with astonishing rapidity, ami to
figures that made Boolfc etaro ami whistle. lu
deed, each wan the thoroughgoing aoal of the
Haltimoro it Ohio Hoad that Id quo Instance it
overreached Ueolf, At one time, wjiou the Hal
timoro A Oblo’e rale to Pittsburg had boon re
duced bb low as to the surprise of tho (ravel
ing public, the I'suosylvaula Hoad offered the
same Haltimoro A Ohio Upsets at f4, and kept
up tho supply for a few weeks. This was douo
by buying up tho Haliimore A Ohio's tickets iu
Philadelphia, taking off tho tickets of thoThiladel
phia, Wilmington A Haltimoro Hoad, and selling
tho rest of tho ticket covering the road between
Baltimore and i'ittsburg, by which process uot
only tho Haltimoro A Ohio Hallrood undersold
on its own tickets, hut a small profit waa made.
About this time tho strike of the locomotive en
gineers occurred, which embarrassed tho J’eun
sylvaula Hallrood somewhat, and Hoott began to
lusq stomach for the light. As ho wae vlnually
master of tho iluo between Haltimore and Now
York, he thought that ho should obtain some
concession* au compensation (or bis advantages,
but the lUUimoro A Ohio Railroad would uot
accept any proposition but
AN VqDITA&PHJJIVIfION
of through business between tbo two roads.
Negotiationa were brat I*kuu hy the I’ommyl
vaula Itailroad though the agency qf tho Phila
delphia, WUmlugtou & Baltimore, stuck at tbla
point for a long time, and at one time the Venn*
sylvaula Railroad seemed to have made ila ulti
matum that tbo Baltimore & Ohio lUilroad should
make a ooiiDootlon with the Baltimore & Roto*
mao Hoad near the city, no as to eoud all through
trains via the Baltimore & Potomac tunnel. tho
enormous cost of which had iAmk all proms on
the latter road. This alao was rejected, and.
after haring lasted from Peoomber, IWO, tQ the
middle of April, 187 i, tho war was terminated by
each rood having tiro through trains between
Washington nmi New York. Tlicro is no liner
Dioco of road in tlio country than the double
trnok lino of tbo Baltimore A Ohio Hobjl between
Washington nml JJalllmoro, wheroos, tlio Baltl
muro A I'otnmao Bond In Hnglo track. IB not jot
llrmly settled, ami line suffered greatly from fresh
ets. Homo accidents hnyo also prejudiced the rub
tin against it, so that the Baltimore A Ohio Road
still mnintalne a monopoly of local tiavol ho
twoon Baltimore and Washington. During the
tight tlio i’onUHjlvanln Bond limited iU tickets
to tbreo days, and supplied only tbo ordinary
current demand, while tbo Baltimore A Ohio
Road sold its tickets freely without limit, so that
groat numbers were taken up in speculation. It
is a striking proof of tbo magnificent ability of
tlio road that, notwitliHtandnig this whole
cutting of rales, and notwithstanding the gen
eral depression of business, Us report for tlio
tlaenl year ending Kept, ill), 1874, and time In
cluding the period of tho war, showed net earn
ings of $5,530,11)9.75 out of a gross revenue of
$11,917,090.43. and that Its not earnings for tho
mem Atom showed an actual Increase over tho
preceding year of f 83,2(11-80. i
THE PRESENT FKllfT
is nnlr a ropolltlon of the ono above described,
aggiavatcd. however, by the completion of iho
Baltimoro A Ohio's lino to Chicago. It is being
waged by tho Baltimoro A Ohio to compel the
rcnnsylvonia Bond to rcopeu communication for
it with Now York. Tho most galling thing of all
to Scott U, that after a twelve years’ light, In
which bo expended millions to obtain tbo ad
vantage, tbo Baltimoro A Otiio Road should
coolly ignore It, and, planting itself upon tbo
solid rook of its financial condition, compel him
to forego it. Thus, in bis letter of tbo 18th
ust., lie says to Oarrott:
You h»vo uni afoot of railway nor o dollar’* worth
of property north of Baltimore, nml yet you have en
joyed through business connections Mid arrangumoute
for the inUTClianco of tratUc. And it seems to me
most unfair that you should attempt by tbe course in
dicated lu your message, to coerce otlur parties Into s
policy that tn'Rhl result In great Injury to tho property
they represent.
AH TO TUB IMMEDIATE CAUSE
of Scott’s action In cuttingotT the Baltimoro A
Ohio Road from Now York, It is doubtless duo to
the quiet cutting of rates of tbo Baltimoro &
Ohio Road. At tbe timo of tbo Baltimoro con
ference, when tbo other railroad magnates en
deavored to press Iho Baltimoro A Ohio Road
Into the Saratoga compact, Vlce-Prcaldout King,
who was present at tno conference, announced
tho policy of his road to tho writer, in this wise:
“This road lias never signed any compacts of
thu sort, and nover will. Wo moan to do our
own busiuos* in our own way, and at snob rates
as wo cbooso to establish. Wo do not
wish to war with anybody, nor wilt wo
intentionally provoke one, out no road or combi
nation of roads shall dictate to us tbo terms up
on which wo shall do our own business,” Mr.
KAg presided over tho vast interests of tho Bal
timore A Ohio Hoad during tbo long period of
Mr. Garrott’s absence in Europe. In accordance
with tbo Bottled policy of las road, bo refused to
bo present at tho Saratoga conference, and tbo
Baltimore conforonco was virtually un appeal
from bis dccesiou to Mr. Garrett, who had just
returned homo, and tbo result was that tho bitter
indorsed his notion and roafllnncd itis decision.
Tneso declarations of policy bnvo but ono moan
ing, and that is, that tbo dictatorship of tbo
Pennsylvania Hoad in tbo West has been beckon,
and that tbo cheap rales of tbo Baltimore A
Ohio Bond will regulate tbo transportation tax.
It has boon
IN PURSUANCE OF THIS POLICY
that It reduced rales from tbo West, and al
though, from motives of policy, refraining
from overt action in tbo East, wbilo its Now
York connection is under control of tbo Penn
nvlvanla Itoilrond, it has been wall understood
by tbo business community that very favorable
rates could bo obtained from its ngouis, and cut
ting has been going on for sotuo timo between
the agents of tbo two roado. An amusing in
stance recently occurred in tbo caso of tbo
Kiralfy troupe, who desired transportation to
Pittsburg. Its manager wort to tbo agent of
tlio Pennsylvania Bond, and obtained tho special
rates allowed to theatrical companies. Tbo
agent was afterwards surprised to Und that they
went by tho Baltimore A Ohio Hoad, and, on in
quiry, found that they had obtained
better ratos from tbo latter road, and
bad sold bis tickets to a “ scalper,”
making a profit on tbo transaction.
Tbo agent was oxcecdoniy wroth, but says that
the Pennsylvania Company controls 7.OUU miles
of road, and that as bo has telegraphed to every
agent to llx things for tbo Kirallvs whenever
they want to do business, ho thinks bo will get
even with them.
At tho present writing hostilities are still pro
grossing, and
FURTHER dAkOHSTRATIONS
may bo expected If on accomodation Is not soon
arranged. Tho Baltimore A Ohio Hood has
roado arrangements by which it receives freight
in Now York, transporting it by sea to Baltlmoro,
whore, by its magnificent terminal facilities,
transfer is mado directly to tho cars.
It will not allow its business to be
subject to euab suspension!! any longer
than it can help, and tho writer bos good
reason to bohovp that it has already control
of a road now building, which will give it a lino
from Philadelphia to Now York in uooub a year.
In time, it will undoubtedly control its own lines
from Now York as well as Uaitimoro, to all points
in the West and South.
An sntoipiUo, which ban not attracted any
public attention which la of interest to tho North
and West, is a plan for establishing
ANOTUKtt UAIUIOM> CQ.SKKCTJQH
between Chicago and Baltimore, whtcU will bo
tibortur than any in existence, apt! will bosbortor
than tbe Baltimore <V Ohio Hoad even wben tbo
lino between Centralis and Pittsburg iu finished,
and couuoction made via tbe Oouncllsvillo route.
Tboro is a road known U Maryland os tbo West
ern Maryland, which runs from Williamsport
in that State to Baltimore. It is almost
wholly owned by tbo city, and is
a mere political concern, therefore in a
wretched condition. It attracted tbo attention
of lidward Vernon, tbo well-known railroad ex
port and editor of tbo American Jtaiheau
Manual, who saw that by utilizing sumo linos of
road already built, and building some shore con
necting lines, it could bo extended to Johnstown
on tbo X’enusylvauia Hoad, making a abort-lino
connection with tbo West from Baltimore, tra
versing both tbo Broad Top and Cumberland
coal regions. 4V company was formed, which
mado a proposition to the City Council for a re
lease of tbo city’s interest under certain condi
tions, wbloh wuro refused. Since then bo baa
gone to Europe in tbe interests of tbo scheme,
and with an understanding with Scott on the
subject. When it is considered bow strong is
tbo rivalry between tbo Baltimore <V Ohio Hoad
ami tbo Pennsylvania, and bow groat is tbo
ability of tbo former, it cannot but lie perceived
that tbo result will go far to tho settlement of
the problem of cbeap;transportatlon.
RAILROAD DIRECTORS.
TIJEY MUST PE uniZCKS OV ILLINOIS.
To (J)a Editor </ J'Aa <?/«k«j/o Pnbnna .*
Chicago, Feb. 23,— Art. XU 800. 11, of tbe
Constitution of tbo State of Illinois, contains
tbo following 1 “A majority of tbe Directors of
any railrpad corporation, now incorporated or
hereafter to bo incorporated by tbo iawa of this
State, shall bo citizens and resident* pi this
State.”
lloro ia an explicit declaration of tho funda
moutal law which la ao plain that bo who runs
may read. The article of which tlila provision ia
a pari was adopted by an almoat unanimous vote
of the people, „ ....
Why Is tt not enforced? Is the Constitution
of tbo great state of Illinois a mere rope of
sand, (hat it may be disregarded with Impunity ?
Tbo moat powerful and Influential railroad cor
poratlou iu tbe UUto,—tba Chicago, Burlington
& Quliiey,—a ooporatlon deriving all Ua Qb&r
torod fraucliUoa eioluslvoly from tide Bute, la
to bold an election to-day for thirteen Direotois.
Tbe alleged misappropriation of a large amouut
of tbo funds of this Company to purposes and
for uses unauthorized, or at loaat without tho
knowledge of some of JU Directors, baa for tbo
fl«t lime l» Us hWonr waled a, conflict of opln
ion amongat its stockholders. Both parties pro
ttosa a Hoard of Directors of wlsiob eleven are
uou-realdeut. residing principally |u Boston, and
but two of wblob araciUsons of this Htato, Tbo
election, whichever party wins, will bo a palpa
ble and diroot violation of the Constitution, Tbe
President of tbla road is an old and able lawyer.
Neither be »or hi* associates can plead Igno
rance.
Nor can it bo claimed that thin constitutional
provision la injurious to (be value and rights of
tboir property. Too very disclosures which have
been given to tbe public concerning tbo manage
ment of this corporation Is an argument against
the wisdom and policy of permitting a few capi
talists In Boston, however respectable, to man
age the affairs of the Company.
Tbe Interests of tbo stockholders In «U rail
road corporations, uo less (baa tbo Interests of
tbo people of tho State, are to be benefited by
enforcing this provision of the Constitution of
tbe State.
1 have only singled out tho Chicago, Bur
lington & Quincy Hoad because of the gen
eral attention now directed to that road- hot
other corporations as well as this one be re
quired to comply with the previsions of the Con
atitution. |f they do not, it is the duty of tbe
Auoruey-Oeoenvf of the Htato to institute the
proper legal proceedings to compel them to do
ao>
Yoa, Ur. Editor, aided la incorporating this
provision in tho Constitution. It received lb,
sanction of a largo majority of tho Cftiivontinr
that formed tho Constitution, and was tnlonn)
by an overwhelming and almost unanimous voti
of tlio people. How much longer shall it be di*
regarded i A Citizen.
AN OLD FIGHT RENEWED.
COMPLICATIONS 11CTWSVS ,111* KlllK AND ATLiW
TIC A nnKAT WESTERN. IT ’
ffprcinl itinvaUh to The Chieapo Tribune.
New York, Bob. B3.—Vroib complication,
hnvo arisen between tlio Brio and Atlantic 4
Groat Western Railroad Companies, and non
ho former refuses to;carry out tho terms of (hi
lease made about a year ago. Kvcr since th<
completion of tlio Atlantic A Great WcMen
lino, tho primary object of its ownon
lias been to socuro tho amilgatnallci
of that enterprise wllli tho Brio
During tbo Oould-JFisk administration of* mi
Brio a long and bitter litigation was ended {>«
tbo action of that Company m Icaeirig the Allan!
tic A Great Western. Tbo latter Company
which bad been In financial trouble over sinri
its formation, was forcloscd and g 0 !(
under s second mortgage In
1871, and tho Brio lease (ermlnaled
In September of tho some year, tba Brio Com
pany surrendering tho property. In Decemlei
it was reorganized, and was under tbo presaai
management until a abort time ago, when J. n
Dovoreux, I’roflidcni, was appointed Ilocoivcr
After tbo revoluUou in Brio, when Biacborfulieln
A Goldschmidt obtained control, and tbo tao»
reform administration bad got fairly to wots,
.TAMES M'HKNUT CAMS TO THIS CODNTnv,
and believing the only practical Hotticmcnt ol
the troubles of the Atlantia A Great Western
Railway was in its consolidation with tbo Erie,
bo. endeavored to olfoot such union, After re!
malnlng hero a considerable timo, ho wcot
away with tho assurance that some * r .
rmigemont looking to tbo cad ho bad in vtev
should bo mado? but tho punllo omerv made n
tbo timo prevented tbo consummation of (Id
plan until last year, when Mcllomy again cam*
10 (bis country and literally forced tbo hasp
which provided that n percentage of tho oaminri
of the road, beginning at 28 percent and endiri
at GO, should bo devoted to tbo Atlantic A (iresi
Western as rental. This lease was signet,
scaled, nml delivered, and ratified by (ho stock
holders of both Companies. It was made ngainu
the wishes of tbo Brio managers, but onacconct
of this tho relations with Bischoffsboim, yjc-
Uonry, and tbo American managers
HAVE KEEN VIOLENTLY SEVERED,
and tlicir several Interests are divots?. Ten
Erie managers tire indifferent to the wishes o|
the English capitalists interested in tlio sever*!
enterprises, bavo repudiated the lease of tLt
Atlantic A Great Western. nml decline to ctm
out its terms. Tliis has creator! a groat deal ul
bitterness of foellng among tlio lioldern of tki
Atlantic A Groat Western securities. Inquiry of
tlio leading manager of tlio Erio continued iL*
statement that Ills Company bad conelndH
not to carry out tlio terms of tho lease. He stat
ed that, llmluig tbnt tlio failure of tho Atlantic
A Great Weslom Hallway was inevitable, (bet
bad concluded not to assume control of it, with
all tbo possible disadvantages of bankruptcy.
Tbs appointment of Goit. Bovoroux as Itcceive:
bad relieved tbo Brio of all obligations rohtbj
to the lease.
A NEW RAILROAD
was about to begin on tbo line of tbs Clovolsni
Columbus, Cincinnati A Indianapolis Boilruid
Developments In Erio and Atlantic A Grev
Western have combined to moke tbo slock am
bondholders of connecting roads wary o
further complications with tboso cutcnirim
Tills is especially true of tbo Cleveland
Columbus, Cincinnati A Indianapolis, nblcU
next to tlio Erie, is tbo most imporum
link in this chain.' Its vnluo may bo learner
from tlio efforts to gain control of its capita
and stock, $15,01)0,000, Tbo necessary eon
trolling interest over 07.500,000 was secant
by the Atlantic A Groat Woatorn in March, 1871
and tbo present management was installed. Tbi
intention was to loose tbo toad to tbo Atlantic J
Groat Western, but so much indignation waa et
ched by tho proposition that tbo Ohio Logislv
tore paused a law prohibiting tbo leasing of an}
road in tbo BUto milct-s throe-quarters of tit
stockholders contented. As tno Atlantic
A Gruat Wcntcru people did not
control tbnt amount, the project tut
abandoned, and possession of tbo road kept h
maintaining cuntrolof over half tho stock. Xodt
this it was necessary to
RAISE MORE HONKY,
and tbo Atlantic A Groat Western Company Issoej
what was known as Westorn extension errtii
cates and bonds,amounting to about $10,000,00),
of which $7,500,000 wero represented by tUie«
year certificates, and tho rest guaranteed by !!■
Erie Hallway, with collateral security in U>
shape of stock of tlio 0., 0., C. A I. Railffir,
Tbo collateral security was deposited it
tho bands of tho Trnuicoa to tbo nomio*
value of tbo bonds thus placed. AccoidinaU
tlio published trust neon, by which the ttii
guaranteed tlio Interest an $210,000 of tho bouJf,
tbo voting power nf tho stock was vested in til
Erio Hallway. Tlio Western extension certifi
cates having tho samo protection as tho bonis
through a lilco deposit, tho stock-voting poti
or is presumed to rest with Wio Trustees
os tbo stock is In thdr custody, ludiviJul
fltockboldors uro now opposed to a continuance
of tho mlmniHtratiop of tbo Atlantic A Grets
Western and tbo Erio Companies. With a vis*
coNCENrnATiNo opposition,
circulars have huon uonfc to tlio . Rtoo’ibo’il>
era, aoldng them to forward proxtci
to bo used against tbq prcueut
Board. Lelaml Bros. ,t Co., bankers,
Nassau street. oro at tbo bead of tbo opposUioa.
and Sir Jobn Swinburne, 0110 of tboTrualcMof
tbe Western extension securities, la acting vntb
Ibom. Tboro is a question, bowsvor. wueilnj
tbo opposition will bo successful, ns tbo voiic|
powers of so large an amount of stock l«inj
lodged lu tbo intercut of tbe Atlantic & tired
Western and Brio will probably nullify
tbo efforts of Independent Htocliuoldcra; but
if Hir Jobn Swinburne is allowed to vote on the
Krio stock sgocoss is certain. Tbo ejection mil
bo bold March 3.
'ibe light bolwren the Baltimore A Ohio and
tbo Punnsylvama Hoads continues, but witkqnt
change or the involving of other roada tUeiem.
MISCELLANEOUS.
tub TPX.EDO, rnouiA * w.vmw iuiuvat courts:.
Tho Receiver of Die Toledo, Peoria «V Warn*
Hallway Company, A- -Lawrence IlopUlns, tiled»
long petit jon yesterday iu United Hiates Cir
cuit Court asking for an injunction to rwUb Q
tbo collection of a tax for W4 on tbo cApital
etocU of tbo Company. After netting out tin
proceedings by which bo was Appointed k**
eoivor, Mr. Hopkins faya that tbo
in Illinois nma through the Counties c*
Iroquois, Ford, Livlngstoo, MaLoen, Woodferd,
Tazowoll. Pooria, Pulton, McDonough, H l *
cock, aui) Henderson, In May last Die officer*
of tbo Company lllod a sobodmowith (hoAuhwr
of Public Accounts, rating tbo Company’s tum
ble property at and stating that w
stock Lad no market value. Tbo Board or
Equalization raised Ibis ursussmonl to eLdv
titiU, and also (vsaeesod the capital slock at ¥»•'*
030. Tbo Hoccivor, tboroforo, askod for an *“*
Junction to prevent tbo collection of thbicapmjj'
slock tax, and it waa granted by Judge Brua
nioim ogamst tbo County Collectors of an u®
countiou iu lllinaia through which tbo road raw*
tub rauHBTi.YANU uaiuioad, .. %
Tbe oluccrs of the Pittsburg, Fort ttayae*
Chicago Itatlroad aro expected In the city
when they will take some measures w Iff AUj h
the reduction of passenger-rales from this enr
It Is understood that faros on this road wm JJ*
reduced to tho same Humes as Mwwawtfi”
tbe HaUlmaro’ifc Olflo Balhoad. with tbo differ,
once that they will limit (be use of the
tickets to fivejjays, to prevent them from bti|s
bought up by scalpers and speculator*. *V
ebaugo wifi be made to Now York, to k®°P *
other lines out of tbo difijoulty. It w. howerer.
bardly possible that they can bo kept out on
light for any length of time, as, with rate* at**
to X'hlladelphla, people can go to New 1
tl&86, and therefore peed not pay *£-}• . Hn .
Tbo Baltimore & Ohio is still jw'JJ
a largo amount of tickets, Tboir
trains aro now crowded with through
and yesterday they wore compelled to ait-t a»*r.
ditioual alcepiog-car to provide accowuuwauu
officers of tho Pennsylvania Railroad
very sore about tbe present state of
they give vout to tbelr feelings ou
casion. Yesterday the Western Qouoral
Agent of tills road reprimanded Mr. Bam* \ •
tbo Secretary of the Board of Trade, yor) ** ..
ly (or the favorable notice ho had gived 1°
Baltimore i Ohio i)i bis onuual folW;*
llaudolph replied that he had giro* l, J*{J t Jp,«
and figures, and If thoflo were unpalatable to
other hue ho could not help it.
THE CHICAGO, DASVILUS 4 YiacrS** 8 .
.Sixcwl VtumU'ti t* J'ht L'huaao /ciSU'*'* 0 f
mxvau. 111., Fall, 33.n-Htu.tUt ‘'"ffi’n,
(bis county, attached six locwpouvcs thu “yj a .
lug belonging to tbo Chicago, Banvil o « *
couues lUllroad at the Company* »:' 0 {
shops at this place to satisfy a Joint t “ 0 /
♦20,000 against tho Company and ‘ u
Michael Kojleyand Charles Men* *oik
Dished them by the former, -jh#
done for them by the lilw-

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