The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-07-14

rest nearly fifteen million Of dollars has to be paid
this year 1t is true the interest on three millions has
been provided for for the next eighteen months but
If the company does not anything more than it's
expenses all the payments for interest are added to
the capital and swell the cost of the road II between
eight hundred thousand and one million of dollars are
added annually to the cost Of this road independent of
the enormous cost from the folly and ignorance of
the management exhibited in their contracts and
in every item Of expenditure, before the road is
completed to Lake Erie it will be rather an
expensive affair. 1t must be borne in mind
that the interest another year on the deficiency
this will amount to between 500 900 and s. pay
which will require an income Of 100000. At this rate
the concern must soon explode. Nothing in the world
can long stand such an enormous drain. Where the
money is coming from to pay for all this, is than
the board Of directors any else can tell; and
when the of supply of capital dry up there
must be collapse Iii most extraordinary position
for any company to be in and If the board eff directors
were much interested in the progress work
in its financial condition, as is generally supposed
they must be overwhelmed with the difficulties and
barrassments with which they surrounded. The
time is at hand when we shall receive proper
need of credit for the have steadily and
firmly pursued in relation to this aud all other compa
MES similarly situated. The Erie Railroad Company
is rotten to the very core and expose will con-
firm our predictions.
Ia connection with this matter we annex an extract
from the London Standard Of Freedom of the I'd Of June
it will apply particularly to the railroad move
ments in this country -
MODERN BUNDLES AND THEIR CAUSES.
The same were, Of course, still at work Ac-
emulation upon accumulation CT interest still went
Ii became nearly i'm possible to find before, en-
ploym.nt for surplus capitalnas these chains from
the toll OF an over taxed people are syled-when a
new source Of speculation and investment invent
ed which in extent has rivalled indeed the
astounding operations between 1928 and 1926. This
the railroad mania which took its rise from the
source we have pointed out 1t was really "a leap in
the dark" No one really knew the proper cost of u
railroad except men who were not interested in tell
Ing the truth. For some years no knew the cost
Of working and wear and tear upon any of these
lines; and for many the statements given
studiously falsihed The astonished reader may ask
how men should be so deluded and so long The ex-
PLANTATION is easy. The spirit of high gambling ruled
all Those most prominent in the planning of lines
really the most Indifferent to expense either of
formation or working, as well to fnal results. Rail-
rays in fact, we'e made 70 gamble ruth Utility and
economy unheeded. Statements passed uncontra-
dctsd because final results not looked those
most active in the stock Engineers did they pleased
Attorneys and lawyers helped on the game aud black
leg directors - shutiied the cards cogged the
dce'' As the case required The end has been delu-
sion unequalled since the days of the South Sea
and the Mississippi schemes" the ultimate effects of
which we fear. veto come We well nvince ed
having had access to real facts connected with this
matter that even the disclosures made only
beginning. When the eyes Of the public have bssn
fully opened, they will see how Just the epithets
applied to these speculations by Mr. Robert Gardner
of Manchester, when that gentleman examined
before the committee an Peels Bank Act last year.
We have heard the statements of OF the recent
committees Of Investigation to- because they
make the" working COST Of a railroad sixty per cent
on the receipts Now We have had access to facts
BEARING on this matter. and affirm without hesita-
ton, belief that there not hafa dozen lines
in the kingdom, the working Of which does not cost
more than sixty cent the receipts per annum,
ard that some will be found to cost than seventy
per cent As n safe rule, would say" Take the
gross receipts deduct interest Of capital borrowed
the remainder, II any is profit So much for rail-
ways as investments more serious consideration Is
what Is to be done with the debts Of these
No now will renew their debentures, which, being
mostly for 4" seven years fast running out.
Probably they amount t. sixty seventy millions in
all 1t is q grave question how they to be met
when due what will be the ultimate fate of these
immense engagements and II is one which would
recommend for solution to the qdpus of the lead
ing Journal who to enjoy fishing in these trou
bed waters.