The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-07-09


cent; Reading Railroad u; farmers Loan, n. 1t has
been very dull inactive week. in the stock market.
Our observations upon the market from time to time
| appear to be taken by some with uncomfortable
dsaste 1t depends however upon the relative posi-
tion the parties towards the peculiar stock apparent
" interfered with whether they bulls bears
We profess to stand sentinel upon the watch tower
prepared at all times to challenge promptly who goes
there whenever feel that the interests of the many
are to be affected by any party or clique.
Thus remarks about Erie railroad stock are the
result Of careful examination into the facts of the
case and settled conviction that the company have
right to hold out false lights by which the public
injured merely because they think that the work
must be completed to Lake Erie, at all and every
hazard.
1t is great work one that will benefit the city Of
New York vastly that New York ought to build;
one that she doubt will build We profess be
warm friends to this noble enterprise any in d.
recton; but hall steadily oppose that highly
surabe policy which finds in studied cone.ament the
means Of success. We do not hesitate to assert,
that If fair and honest statement of the rece pts
aud expenditures since the road opened to Bingham
ton given to the stockholders if the directors
would make plain memorandum Of all the accidents
to motive power all the charges placed into that
thomess reservoir construction account, it would be
made to appear that every dollar expended for
both upon bonds and stock actually borrowed there
not being cent Of surplus earnings properly appi
cable for such purpose If we right in this view
of the then submit every properly constructed
understanding whether the investments constantly
commended to people Of moderate means to be
condemned, aud whether wide spread injury not III
tmatey fall upon those who wholly unable bear
1t is precisely in character with that of the
Erie where, in order to sell their bonds every par
tice of important information in regard to the cond
ton Of the company is studously kept from the public
eye and statements to misleal aud deceive
perseverngly and industriously circulated The
abominable management of the Harlem aud Erie aud
the certain overthrow which is to follow upon
their heels with odium other enterprises be they
good bad, and Is certainly, a matter be ssri-
ously regretted.
1t is not to be disguised that all kinds OF stock pro-
perty is selling at prices fully equal if consider
ably beyond it's value. To excite any amount of specu
lation in Wall street, never was more difficult. The
public have become sick of trading In articles managed
by who consult nobody's interest but their
There is not day that powerful evidence
against Incorporated companies does present ITSELF
calculated to shake confidence and dincne people to
deal in th,m.
The Hon A. G. Flagg, formerly President OF the
Hudson River Railroad has written letter in relation
to his administration, which is destined to srcse
no Uncomfortable influence upon the public mind in
regard to these matters. The sentiments il contains
those which we have long advocated, that
make apology for quoting passage two from it,
for the benefit Of those interested in railroad stocks
generally.
1t appears that Mr.. Flagg and MIR. Alley have
been turned ont Of the direction of the Hudon
River Railroad, simply because they advocated tn,
tTaordinary policy Of borrowing money first, and
tracing to expend afterwards the modern method
being the exact contrary Mr. Boorman and his friends
had determined to build the road to Albany at any
hazard and Mr.. Flagg he able 10
make himself sufficiently acquainted with the
diton Of the work to opinion stated frank
ly, that the construction of the Hudson Railroad to
Albany 142 miles in length, would cost much
expended originally In constructing the Erie Canal 363
miles in length From the moment that Mr.. Flagy
made the fatal mistake to have such opinion, aud
t. utter IT, he not the for Mr. Boorman. In
this able Justification Of his administration, aud of him
self, we find this remarkable paragraph
g insisted that policy which deemed prudent
in the Of the finances Of the State in
all respects applicable to the affairs OF this company
and urged that prudent course essential to the
protection and vindcston Of those directors whs so
cited subscriptions aud promised the payment Of
per cent interest to ockholder that the system of
finance adopted in the charter Of getting subscrp toa
Of three millions and paying interest it, without
any earnings from the road but by issuing more stock
on which interest must also be paid required great
prudence and circums pecton in those Who had the
management q 1t, to preserve good faith with the
and the who were to take ten
and in some cases twenty per cent of the Of
their contracts in stock at par that the 100000 OF
stock which the charter authorized to be issued to
interest would be exhausted In November 1872 aud It
inds Pc able that the at command should
be 90 applied AS to get section Of the road in opera
ton to enough to pay interest TO stockholders az
| ter November that the company was already mp-
Gated for million beyond its colectsble means and II
million half million more OF contracts made,
embarrassment might follow, and the road be sold
the claims Of the contractors or on the payment
OF bonds and In this way into the hands Of as
tocatou Of SPECTATORS, perhaps for half million Of
dollars and thus acrifce the entire interest Of the ORR
| gipsl rtockhoiders"
Every word in the above is applicable to nearly all
the railroad companies in progress Of
in which MIR Elsgg is not director II is clear that
such system Of nnsncen meets with his unqualified
condemnation and II Is equally clear that he lets this
company down with much he possibly can,
from fear that the public will take the alarm and,
by withdrawing all confidence from its present mana.
gers pass the work into the hands Of set OF specua
tors to the Wholesale injury Of the original stock
holders
In aluson to the report published By the Board in
F,bruary, Ar Flagg makes of the following Ian
guage
The report published by the Beard In February sub
fequrnt TO the full report from the chief engineer in
relation to the amount work and the difficulties
which had caused increase OF expenditures beyond
the contract prices did not present TO you the cond
ton Ct the work with that fulness shch thought the
occasion required. Instead Of being informed Of the
! quantity 81 excavation and Of cmbankmcnt which the
chief engineer had given with cxactnes. and which
would have shove you Of the results produced by
the application 81 go large an amount OF your money
the report states page 49, that S3l5O2 10 had been
! expended in grading, pilng and bridging " and at
page u after concedng that you had right tA0Pect
something as to the progress Of the work. The
port literally gave you nothing Alth ugh the report
II the chief engineer then before the Board instead
of showing the progress Of he work from this authentic
sstement where the cubic yards and the feet and the
miles q work done given, the stockholders
Informed Of What they had been repeatedly told before
that the work Is under contra and In OF
structon TO Poughkeepsie; and they were also told
what of them knew before that large number OF
the stockholders had the work for themsevcs In
the flying steamboat excursion the 10Th November
when the bon touched for brief period at half dozen
| points, on working line Of ~ miles.
These vague ref,re with the average number OF
men and teams the work b.equent to the steam
beat review Of the working line in November closed
~