The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-07-20

holders Of the stock called upon them to beware
Of the mine upon which they apparently quiet
ly resting Our warnings in some instances, IN
hseded and the collapse ruined those who blindy
placed so much confidence in the statements OF those
whose business IL was, by false statements, 30 to
swindls the public There is not . railroad company
in the country the business Of which afford such
gross extrayagance has been exhibited In the
management Of the finances of such concerns as the
Reading and the Erie. We connect these companies
in remarks because in their rise and progress they
have been alike and because the results realized In the
former sure to be realized in the latter and we
wish to place them side by side buoys to those
who have the Of great works Of inter
nal improvement, against the shoals and rocks upon
which they wrecked We do not wish to be under
stood selecting the Erie the only bankrupt railroad
in the country; for is opinion that there not
solitary solvent railroad company in the Union. 1t
has been recently discovered that several Of the eastern
railroads those which supposed to be the best
managed companies in the country are bankrupt, aud
have for time earned the dividends declared
Until within the past year two have considered
railroads the best and safest investments in the world
and have favored their and extension in every
way in our power But have recently made the
discovery that a system Of swisdling has been
carried on more extensive than in any other in
corporated companies, not even excepting banking
institutions. We not alone in this opinion;
many OF our largest capitalists men who have been
the heaviest holders of railroad stocks and have SUBJ
scrbed literally to every important road started have
arrived at the conclusion aud have sold out their
interests
This is solely the result Of miserable management, Of
speculations the part Of the directors and those
with whom they are connected, in the contracts and
business Of the Of the appropriation Of the
capital to the accumulation Of fortunes, by those
trusted with its expenditure; in few words, in
peculaton of all sorts and in every way Railroads
which should not have cost more than $4,000 per
mile have cost the stockholders than double that
sum, and after the line is constructed at this
great cost there has been annually large increase OF
capital No appears disposed to give true correct
and detailed statement Of expenditures but the sggre
gate is given in such way, that tell where
the money has gone to Public confidence has disappear
ed and the stockholders may be thankful if they ever
realize anything their investments. 1t is very easy
to pay dividends out of the capital, long the
pital lasts, money be borrowed bonds; it is
very easy to declare dividends payable in the bonds of
the company 1t is easy to make low estimates Of the
cost Of road, for the purpose Of filing up subscrp-
tion for stock and when the actual amounts to
FIVE six times the estimated to for it by
saying that the line and grade altered it is very
easy to make extravagant estimates Of revenue and,
butte the falling off to dozen not of which
existed 1t has been very easy to fill up subscrip-
tions to railroad stocks, upon estimates known by
those who made them to be false and to conf
dencs in the statements Of boards Of directors COM
posed Of Of most distinguished men; but 1t is
longer. The time has passed for the successful
accomplishment Of such swindling projects, and the
results Of those recently started have yet to be roa
lied. Hundredss and thousands will refer to our
remarks and predictions relative to the Erie the
Hudson River, and dozens OF others, In different
parts Of the country, after they have been ruined
by their folly and blind confidence In such men
compose the direction Of railroads generally,
and regret that they not governed by our
counsel and disnterested advice We know Of dozens
of instances, where Of moderate have been
compelled to submit to sacrifices Of forty and fifty per
cent their subscription to Of these railroads,
and who but the rich man who stands ready to pur-
chase at the depreciation the speculato
benefits by the poor mans necessity There
Of individual Losses in the history Of the Erie Railroad
management the particulars Of which would harrow
up the soul Of any one but the wealthy managers,
whose folly. extravaganza &C. &C, &c, sc, &C. have
been the Of much suffering and before the
end is reached before the curtain drops many more
and much harder will be added to the lat Not
vibstsndng the long list Of gross and glang acts Of
fraud and personal in the manage cement
Of the property OF Others these strange IL
may seem) find advocates and defenders