Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1839-01-10
From the New York Commercial Advertiser.

IFrOm the Dew hOrk ""'s''''>''
SroNINGroN RAIL RoAD.-The New
York Times of the 4th inst. publishes
letter from Colonel a. Hamilton, chair
man of the committee Of the Stonington
Rail Road Company, appointed at the
meeting held in New York, addressed
to the President of the company, and q
copy of the correspondence that has
passed between the chairman Of the
committee and the United States and
Girard Banks of Philadelphia. This
letter gives more information as to the
state of the affairs of the company than
any other document which we have
seen in print. ....'.
The writer states that lie personally n2.
piled to the cashiers of the Bank OF the U.
States, and the Girard Bank. for assistance
lin cxtricating the company from their em.
| IbarrassIncnts. The banks. however, rciuseu
/ to advance any farther sums for the purpose:
II They suggested that, inasmuch rs most OF
the stockholders are purchasers at reduced
prices, they can best afford to sustain the
| company in its difficulties and, should such
| Investment prove Improbable, the loss would
| be eouitaby divided. The banks have al
| ready paid more than the originally estimated
| cost ofthe road, and, while the income arising
| from il has been exceeded by the current
| expenditure, they do not consider themselves
| authorized farther to involve the interests OF
| their stockholders in the enterprise.
H The letter states that the money expended
II by the company was more than double the
| chartered amount of its capital and while
| the estimated cost Of the road was ,2OO,OUO
dollars. This is attributed to administration
al mismanagem and more particularly 10
| lavortism in the distribution Of the stock, IN
| making large appropriations Of the shares 10
particular individuals The effect Of this was
re epeated suspensions in the progress OF the
work at great expense, until its completion
was finally procrastinatcd to period of ex-
travagance, when the prices OF labor and ma
terials became excessive.
The road, it is stated, is located and con.
structed with extraordinary judgment and
excellence, and that there are strong grounds
to anticipate, if the company should be re-
| lieved of its debts, that at no very distant
period its stock muy become fair subject Tor
investment.
II 1t is estimated that, at present, the income
of the company is not equal to It's cxpendi"
lures.
The remedy suggested for supplying tho
wants Of the company IS, to invest the direc'
tors with authority to impose assessments on
each transfer of stock, but rs an ehectuai
exercise of such power would require tho
voluntary consent of every stockholder to
render it obligatory on all, it is proposed to
make application for Legislative amendment
of the charter, to meet the proposed object.
Doubts are expressed whether legal authori-
|Ity could be vested in the direction to assess
the stock while in the possession OF its pres
ent owners. Those who become stockhold-
ers, after an assessment shall be made, can
interpose no valid difficulties, as they are
purchasers with notice, and consequently
voluntary contributors. 1t is farther proPos-
ed that the new adventurers should be en-
titled to additional stock on account OF their
contributions or, at their option, irredeema-
ble certificates, bearing interest co-equal with
the dividends.
The letter SAYS: at would be worse than
useless to disguise the fact that the compa-
ny's affairs are so absolutely involved in dif-
iculty, that unless some prompt assistance
be brought to its succor, it's rights, property
and privileges, will be adjudged to its credit
ors. The road is now under attachment and
other claims will soon take the same course I;
the only question now remaining for legal
H inquiry to decide is, whether the road shall
belong to the attaching or mortgage credit.
ors"
II The letter of the cashier Of the Girard
Bank uses the following language :-"No
II disposition exists on the part OF our bonrd OF
directors to increase the amount we already
have at stake in the said company's concerns.
Il Neither would VIC consent to be party 10
any arrangement which would require pro
rata subscription to new stock; nor TO come.
at this time, under nny engagement to extend
the period of payment Of the March bonds,
so far as we are interested in them"
Il The letter farther s,ntcs that it is not the
desire of the Philadelphia banks to coerce
the directors of the railroad into the adoption
Of measures for their special security.
Il The letter of the cashier of the Bank of
the United States says-"I can only express
the opinion which know is entertained by
the board Of directors Of this Bank, that no
II farther advance would be made to the COM
pany, either by direct loan, or by new
subscription to the stock of the company
Nor do think the board would be willing to
extend the payment of the bonds of the com
pany falling due in March next"