Search the Newspapers Browse Newspapers by Date Articles Indexed by Topic About the Newspapers Valley of the Shadow Home

Valley Spirit: October 5, 1859 Go To Page : 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |

TRUTH WILL OUT; The Sunbury and Erie Swindle Exposed!; Petrikins Revelations; McClure's Platform Upset
(Column 1)

Summary: Canal scandal. Allegation that McClure was bribed with some silver plate. Article includes testimony from involved parties.
(Names in announcement: A.K. McClure)

Full Text of Article:

Mr. B. RUSH PETRIKEN, one of the opposition candidates for State Legislature in Lycoming and Clinton counties, having quarrelled with some of his late political associates, is making a clean breast of the manner in which the State was swindled out of her Canals by that rotten concern, the Sunbury and Erie Railroad, and its corrupt speculators, that have taken these gentlemen all aback. Mr. Petriken was one of the active managers in procuring the passage of the Sunbury and Erie bill through the Legislature, and was, consequently, cognizant of all the plots, bargains, wire-pullings and arrangements by which that scheme was accomplished. His position enabled him to obtain correct knowledge of all the doings hidden from the public eye. He is well posted up as to how much money certain members received for their votes, and why presents were given to others. This is the business in which Col. McClure played such a conspicuous part and for which the Service of Silver Plate was obtained. In a letter published in the Janiata Sentinel, purporting to come from Philadelphia, though mailed at Chambersburg, and set up in type from manuscript in the handwriting of Col. A. K. McClure, and which fact we are prepared to prove, he puffs himself for his agency in the nefarious business after the following fashion:--"It (the Silver Ware) is a testimonial from the friends of the sale of the Public Works TO COL. A. K. McCLURE [It will be observed that ho states in his own letter that the present was to himself which makes him guilty of receiving bribe,} for his able and indefatigable championship of that great reform in the late Legislature, and none will deny that the rich tribute is well deserved. During the whole of the protracted and bitter struggle in the House to sever the Canals from the State, and State management--in every emergency Col. McCLURE came to the rescue!" This unfortunate letter, from which we make this extract, fixes McClure's agency in the matter beyond the possibility of his shuffling out of it as he will be glad to do at no very distant day. It will not be long before the public will get an inside view of the mysteries of this swindle and the principal actors in it.

With Mr. Petriken's motives in making these disclosures we have nothing to do. It is enough for us to know that he has voluntarily become "State's evidence" against his former associates. In his . . . [text missing] . . . benefit of the plundered public in general, and Col. McClure in particular, he reveals the dishonest transactions connected with the sale and re-sale of the Canals; and promises further, that if elected, he will institute such inquiries as will establish the fact of the most astounding frauds in that affair.

Among other charges, he says it can be made manifest, by proof, that the Canals were sold for $2, 000, 000 less then they could have been sold for, the same kind of payment being received--that in each sale the Directors and Officers of the railroad were parties purchasing--that all the sales were made in the short period of one month from the time the canals were conveyed to the railroad, in a secret manner, without notice of when they would be sold, or the kind of payment that would be received; and that notwithstanding this secret manner of sale, much larger sums were bid by other parties, before the present possessors had consummated their pretended title under law.

On investigation he says it can be proven that the West Branch and Susquehanna Canal was sold for $500, 000, in promises payable twenty years hence; but before the sale was consummated under the law, $750, 000 were offered for that part between Northumberland and Duncan's Island, (about one-half)--and such witnesses as Judge Jordan and Wm. I. Greenough, Esq., of Sunbury, will prove it.-- Mr. Petriken says the North Branch Canal was sold for $1, 500, 000 in promises payable in future, and that before the sale was consummated an offer was made by other parties of $2, 000, 000. The Deleware Division, a Canal which under State management cleared six per cent. per annum on the sum of $4, 000, 000, was sold for $1, 775, 000, $75, 000 in hand, $100, 000 in the stock of the company created, $400, 000 in monthly installments of $40, 000 and $1, 200, 000 in promises to pay twenty years off. Before this sale was made, other parties offered $2, 000, 000, and no doubt if the world had known the terms of payment $3, 000, 000 could been had. Inquiry may prove, says Mr. Petriken, that two or three persons in his own district own more than one-half of this stock, for which they paid nothing but the guilt of the wrong to the people, and on which they realize at least $30, 000 annum!

We have never doubted that the time would come, sooner or later, when the secret history of the passage of the Sunbury and Erie bill would be made public, and we are not likely to be disappointed. The parties to that fraud are already quarreling over the spoils, and in their eagerness to criminate one another, are making disclosures that will open the eyes of the people to the disreputable means by which the Commonwealth was plundered.

Mr. Petriken's Statement.

FELLOW CITIZENS:--I propose, in the event of my election to the assembly by you, to enquire how the officers of the Sunbury and Erie Railroad have discharged the TRUST confided to them by "an Act for the sale of the State Canals."

In this inquiry I think it will be made manifest by proof that the Canals were sold at $2, 000, 000 less then they could have been sold for, the same kind of payment being received--that in each sale the Directors and officers of the Railroad were parties purchasing--that all the sales were made in the short period of one month from the time they were conveyed to the Railroad, in a secret manner, without notice of when they would be sold or the kind of payment that would be received, that notwithstanding this secret manner of sale, much larger sums were bid by other parties, before the present possessors had consummated their pretended title under the law.

To illustrate, I believe on such an investigation it will be proven, that the West Branch and Susquehanna Canal was sold for $400, 000, in promises payable twenty years hence, but before its consummation under the law $750, 000 was offered for that part between Northumberland and Duncans Island,--about one half,--and such witnesses as Judge Jordan and Wm Grenough, Esq., of Sunbury will prove it.

I believe it will be proven that the North Branch Canal was sold for $1, 500, 000 in promises payable in future, and that before the sale was consumated an offer was made by other parties of $2, 000, 000.

I believe it will be proven that the Delaware Division, a Canal which under State management cleared six per cent. per annum on the sum of $4, 000, 000 was sold for $1, 775, 000.

$75, 000 in hands, $100, 000 in the stock of the Company created, $400, 000 in monthly instalments of $40, 000 and $1, 200, 000 in promises to pay twenty years off-- before this sale was made other parties offered $2, 000, 000 and I have no . . . [text missing] . . . had.

I think it can be proven that in all the sales made a portion of the Directors of the Railroad were parties in the purchase.

The enormity of the wrong done to the Commonwealth will be thus made manifest and when inquiry comes to be made as to the owners of these Canals since the sales, it will be proven that a few individuals, who perpetrated the wrong are in receipt annually of princely incomes.

To illustrate this--The West Branch and Susquehanna Canal is represented by stock $600, 000--by bonds $500, 000; the interest on the bonds is $30, 000--the revenue about $100, 000 leaving $70, 000 to divide amongst the stockholders. Enquiry may prove that two or three persons in this district own more then one half this stock, for which they paid nothing but the guilt of the wrong to the people and on which they realize at least $30, 000 per annum.

But inquiry I think will make the Delaware Division the most startling fraud.-- The Brother of the President of the Sunbury and Erie Railroad is President of this Canal. It was organized with a stock capital of $1, 200, 000 and the $100, 000 stock held by the Railroad. I think it will be proven that this capital has been doubled making in all $2, 500, 000 in stock and $1, 200, 000 in Bonds and debt--and that it pays the interest on this debt and a dividend of 8 per cent has been declared on the stock.

Many say we know great wrong has been done but how can it be remedied?--My answer to their inquiry is this: By the act for the sale of the State Canals, the Sunbury and Erie Railroad company is made Trustee to sell them, the State agreeing to take in part payment $3, 500, 000 of the Railroad company's bonds, payable in the future, and three fourths of all realized over and above that sum in such payment as the Railroad company should receive, and the other fourth of the surplus the Sunbury and Erie keep as compensation.

If this position be correct, then the only way the Sunbury and Erie Railroad could legally sell was by public sale--and no officer of the Sunbury and Erie could become a purchaser. Surely in the ordinary affairs of life, the Law holds that a trust sale must be public, and it holds with equal force that a Trustee cannot be a purchaser at his own sale, hence the sale of the canals is void and the remedy is to create a new trustee to carry out the design of the "Act for the sale of State canals."

It is as to the truth or falsity of the charges made that enquiry is designed to be made in the Legislature. Then the parties who denounce me can have the privilege of doing it in a legal manner, and at the same time have their lips hallowed by kissing the Gospel of God, if they have belief in Him.

Then an approximation to truth can be reached or a multitude of souls be damned for false swearing. Then it will not be an allegation against allegation without the restraining influence of an oath.

Fellow citizens, if there is nothing wrong, why are those people accused, so uneasy. Because they dread your wrath, when you come to know by proof--no allegation--that they are living in princely magnificence, on the revenues of a canal built by your sweat and toil and by them fraudulently obtained.

B. RUSH. PETRIKIN.

Franklin County Teacher's Association
(Column 4)

Summary: Something about a meeting of the teachers association. Unfortunately, almost totally illegible.

Married
(Column 5)

Summary: Married at German Reformed Parsonage on September 15.
(Names in announcement: Rev. Samuel Phillips, David Anderson, Carter Christiana)

Married
(Column 5)

Summary: Married on September 29.
(Names in announcement: Rev. Samuel Phillips, William Aughinbaugh, Maria Miller)

Married
(Column 5)

Summary: Married on September 29.
(Names in announcement: Rev. S. McMurray, W.B. Clapsadle, Mary Kuhn)

Married
(Column 5)

Summary: Married on September 29.
(Names in announcement: Rev. S. McHenry, Mary Weavil, George Gelwick)

Slanders Against General McAllen
(Column 3)

Summary: Spirit says it has avoided commenting on county-level Opposition candidates, but Transcript has not done the same. It keeps attacking McAllen, the Assembly candidate.
(Names in announcement: Gen. McAllen, A.K. McClure, James Brewster)