The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-12-30

make immense contracts for railroad iron ct prices
much above what other companies have paid! We
do not know what amount OF railroad iron has bsen
manufactured by this iron company for the Erie Rail-
road; but know of contract Of ten thousand
tons at $67 per cent making aggregate cost OF
S675,Oo0. The quantity of railroad iron can now
be purchased At $42 $45 per ton, at which price the
aggregate cost would be $4,000 S25 less then
the contract price. This Is not all. Soon after
the above contract was made, II discovered
that railroad iron could be imported cheaper than 1t
could be manufactured by this iron and coal mining
company and they suspended operations put out their
furnaces and discharged their hands, but held ON to
their contract with the railroad company, because
thsy could import at cost of ferty-two dollars and
deliver at SCI SO per ton. This is a profitable
business and perfectly legitimate in every particular
and the contracts the company fulfil in this
way the money it will make. The only objection
the stockholders Of the Erie Railroad Company have to
IT, is the loss Of $255,000 contract. When
these individuals connected themselves with the iron
snd coal company they should have resigned their
places in the direction of the railroad company
II il not difficult, with many similar to this in
mind, to account for the enormous expenditure Of
money on comp aratively such Q short line Of road
The miserable management Of the financial affairs of
such an extended work, is clearly illustrated in the
prices paid for materisf and to contrac
tors; and where there are 20 many outlets from tbs
treasury, the most thorough investigation was abso.
lutely necessary, even in the smallest items to pre-
vent such an immense cost as has already been sad
died upon the stockholders tits well know that such
Investigations have not been made even ordinary
economy has not been praotised but the contrary
II is almost the universal remark Of those who have
had dealings with the company, that the ma agsmen
appeared to think there end to the resources
of tho company; that 1t was impossible to exhaust
the treasury. They have found the bottom of their
money chests tho last cent Of the six millions dollars
in cash has been more than one half
Of the CAPITAL company has been used up bs
sides constructing debt of three millions of dollars
the road not half finished These facts that the
company cannot controvert and the circumstance OF
no detailed or any kind of report having been made
to the soekholders during the three years and s,x
months the present board Of directors have been in
Office looks as though the managemen was UNWILLING
to rive publicity to the actual state OF affairs
In another part of this days paper, will be found
report of the opening Of the Erie Railroad TO Binc
hampton A large party Of stockholders went over tho
road all of whom well pleased With the work and
the ction of country through which 1t passed r.
ppeared to be the universal opinion that when inisb
ed IL would be the most important road in the countrv
OF this there is doubt and completed to Bnc
hampton it will open to this city important trade
which has heretofore been attracted to Phadelnhis
But In our expedition of the affairs of the wa
have had In view the interest of have
endeayor.d to open the eyes of those Interested before
II IL too late that the extension of the road to aks
Erie may be ensured and all the benefits to all classes
origin allv contaminated secured,