The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-01-08

ment 10 likely to b productive not, whether IL
would be better to lose the instslmens already paid
than to pay up those falling due and trust to ui
mate earnings OF the road for returns That Is
net now the question, the point at ISSUE at this
nsnt, IL the power of the company enforce the pay
meut OF the nstalmsnts unpaid from the original sub
serbers to the stock 1t Is argued by some, that the
fact Of the company having opened transfer backs
and permitted stock to DO Transferred vtstss their
claim upon the original stockholdsrs il being In the
opinion Of many tsot acceptance Of the second party
on the part Of the company. This may Do point for
settlement in Of the courts Of the State In
our opinion the case Is clear enough It stands By
the terms Of the subscription certain individuals bind
themselves to take many shares In the capital stock
Of the Hudson River Railroad Company, for which
they agree to pay hundred dollars per share In
instalments payable ct the optic Of the company,
ut certain stipulated periods This . contract
much a. note Of hand or any other written oblga-
tion and not individual whose name is asd to
that subscription can, responsible, avoid the pay
ment Of instruments in arrears, II his stock has been
sold twenty times over, and transferred many times
on the books of the company. If an individual can
avoid contract In the way contemplated by many of
the original stockhoders Of this company there
safeguard dependence to be placed by any moor
Of the Cstskl and Csnsjohare Railroad we have
precedent for the position by the Hudson RI
Railroad Company. The original subscribers the
stock Of that company had paid up several instamsus
On each share when the work suspended, and the
property of the company seized by the creditors and
sold. The iron forming the track, the cars, locomo
tives &C., did not sell for amount sufficient to lqui
date the claims and the creditors compelled the org
nal stockholders to pay up the nstaments in arrears
until their demands satisfied. There are many
in this city who at this moment have distinct
collection Of the large amount paid under these cir
sumstances Us though it happened but yesterday.
This lie the only precedent call to mind in the
history Of incorporated companies In this State but
tho New England States, among the manufacturing
companies, occurrences Of this kind are common.
We hope some Of the original stockholders in tn
Hudson River Railroad Company will carry this
question int the highest courts Of the State that 1t
may be finally disposed of, that the subscribers to
stock of all companies hereafter formed may know
what responsibilities they assuming
There being NO doubt In our mind, of the issue of
any contest between this company and the original
stockholders 1t remains to be what the Of
this difficulty u.s. why the stockholders refuse to pay up
the instaments due, and why they prefer sacrificing
the instruments already paid, and forfeit the stock
The to these questions is plain enough 1t 10
the fact that they have lost what confidence they
might have had, at the commencement, in the board
Of directors and in the management of the financial
affairs of the company. Tho excursion recently made
along the line of the road, and the address Of the
chief engineer Of the work. convinced many who pre-
viousy in doubt, that the extravaganza in
expenditur and the tame incompetsncy in manage
ment exhibited in the Erie and in nearly every other
railroad company In this State visible in this. It
was stated officially that the road would cost four mil
lions Of dollars completed to Poughkeepse, the
distance to Albany from which the natural inference
was that 1t would cost at least eight perhaps
ten millions Of dollars to Albany This alarmed those
who have heretofore placed confidence In the original
statements Of the company and their fears have been
confirmed by every authority since consulted. 1t
fortunate for tho Erie Railroad Company that its
stock was paid up in full before the expose Of the
gross Encouragement and enormous expsnditu was
made. The Hudson River Railroad Company have
been equally Indifferent to cost and the managers
Of both of those roads have long account to settle
with their stockholders. All that has heretofore been
considered necessary to get up company il the pub
cation Of list Of directors composed CT Of
wealthiest and most distinguished citizens and the
publication Of an estimate putting down the cost at
about one.han what It ultimately proves to be. This
has created public confidence and the required SUBJ
scrptiops have been obtained This system Of
has exploded, and it will require very long list Of
Of wealthy and distinguished individuals to In
duce the public to trust their money with those they
know nothing more about than the reputation they
have acquired for csitain species Of hnsaoerng and
for mailing the most out of any position Of trust In
which they may be placed We have had toe many
wealthy and distinguished mon In the management Of
railroad AID other companies, too many Of them
have out Of the Weather and dis.
tingushed for certain than whom they
went in; and it is fortunate the public getting
their eyes open. Millions Of dollars will be saved to
the middle classes by the developments which have
recently been made.
When We compare the management Of all our incor.
porated companies particularly railroads, with those
Of the New England States, astonished at the
difference. Here, 1t appears A. though the companies
created for the benefit Of the directors while at
the east they created first for the benefit Of the
and second for the benefit of the public
a