New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-11-28
Compulsory Subscriptions 20 the Canada Rail.
road
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4
| road.
| FoS lhs rnbanl
Statements have recently appeared IN the
newspapers IT, the effect thit several OF the Railroad
| Companies between Albany ard Buffalo have sub.
scroed TO the stock OF the proposed road through
Canada, called the Great Western Road. Thus state
meni is not wholly correct Ii IS believed that, as
| yet. none OF the rotds have subscribed"
| The Utica AID Schenectady Road, un.er the Pres.
idency Of Mr. Eras;us Corning. uossd 10 Subscribe
| $sooOCO, provided the consent % tso-lhirds IN
| amount OF rs stockholders should be obtained.
There was difference Of opinion m the Board Of
| Directors as 70 the propueiy Of mekIng the SUB
scnp.on-a portion Of the Directors being strongly
| opposed 10 Il, and one OF them entering a formal
| protest against the action Of the majority OF the
| Board.
Among the Directors OF the Utica asi Syracuse
Railroad Company, IL > understood tina. there IS
equal diversity OF opinion as 10 this measure and
iha. molety az leas II not majority Of the Board
are openly hostile to IT, The Board OF Directors OF
this Company have rot vet voted upon the question
OF subscription, but circulars have been authorized
| by a Committee o. the Beard, and have been issued
to take the opinion of the stockholders in relation
! tOit.
In the Albany and Schenectady Company and in
| the Syracuse and Rochester Company, il is also
known that there a difference of opinion upon this
| subject, among the members OF their respective
boards
Commencing with,hese symptoms OF internal con-
royersy among the Directors, the question is now
presented 10 the stockholders, and If ,wo-th,rds IN
sent it is proposed to make the subscription spite
OF the wishes and rsnonSirances OF the rem sining
one-thmd.
This is a most remarkable state Of things, and it
suggests the natural Inquiry, what is the obect M
rlelr. which IS considered So important as To Justify
this attempt 20 array portion OF the stockholders
against the OTHER, and oy the mere force Of Hnbers
10 compel unwilling parties to invest their funds in
foreign speculation
The prstsnse is. that the completion Of the Canada
Road will increase the business upon the central
liue OF Railroads through New York.
Although this result IS very seriously doubted by
many stockholders yet If 1t is correct, 1t amounts to
this that the Railroad Companies OF this state are 10
be permitted 10 invest their funds In building Kali
roads out of this State, wherever they would form
extension Of their own line, and thus, either imme-
distey remotely, tend to Increase their business
II this principle is sanctioned what followsi The
Canada Road is more than 200 miles distant from the
nearest point Of the Utica and Schenectady Road,
which proposes TO take $20Oo00 OF iisstOck. Ii the
Utica ard Schenectady Company can take stock IN
road 900 miles oil, why not III road 1900 miles OIL
provided only that II is part OF the same general
l,ne II it may invest 100000 in such road. why
not s2CCO000. II it may own apart of the stock and
thus build part of the road why may 1t not own the
whole of the stock, and build the entire road The
principle is the same and II the Legislature author
ICES the Railroad Companies Of this State 10 specu-
late OH the funds OF Foreign Companies at all, they
may, with equal proPriey. permit them TO do II TO
any extent which they may deem their interests 10
require.
1t is proposed BY these Companies to take $780,
900 IN the Stock OF the Canada Road, and at last
OF the Companies has announced To Its stockholders
that can pay It's proportion OF the amount (S2Oo,
000) without interfering With It's already large an.
Rual dividends. nthis is so, this s20O,00O should
be divided among Its stockholders aud then let those
who desire to make this Investment subscribe md
tidUGNy, leaving tie other stockholders 10 act inde-
pepeenily upon the subject.
But there is consideration here, affecting parties
other than the stockholders in the roads.
Al the time OF the adoption of the present Constl-
tuition, the railroads between Albany and Buffalo.
running along the line of the Erie Canal, we're
chargeabe with tolls upon property transported oy
them during the season OF canal navigation. Ihese
tolls we're pay able into the State Treasury. and
formed portion of the revenues of the State, which,
by the Constitution. we're sscredly pledged TO the
payment Of the principal and interest OF the STATE
debt Ii was claimed by these companies that the
tolls were burden from which they should De re-
leved and under the pressure OF railroad lobby,
unelualed In the history OF our State legislation,
the passage of an Act was procured last winter, re-
heYiug these companies from the payment 81 tolls.
This act was OF very questionable CONSTITUTION
aliiy and If 1t shall appear that the money mus
withheld from the State Treasury Is to DO expended
in foreign State, in the construction OF line oil
railroad forming Ink III the great chain OF pro-
ected Canada roads designed to extend through the
entire lensth of Canada West, by way OF LONDON
Hamilton, Toronto and Kingston, to the ST Law
rence-thus carrying the trade and travel OF the
West, north of Lakes Erie and Ontario, and en-
tirely hey ond State and Its works OF inter-
nal improvement 1t 10 high timo for the Legislature
TO revise their action and restore the tolls which
the law had imposed and which the Constitution
has appropriated. Railroad companies whose earn
ngs enormous that they divide their 10 or
I5per cent. per annum, and still have ample funds
left TO embark ia railroad speculations IN foreign
States can hardly complaint If they are required 20
pay into the Treasury OF the STATE whose legisla,
ton created and protects them, reasonable toll
upon property the trans portation OF which they d.
vert from the public Canals.
II these Corporations, with their inflated capitals,
already increased by extra dividends 10 three ana
four times their original amount, can continue their
large dividends and still afford the means 10 embark
so extensively foreign enterprises, II is quite clear
that a line Of new and nyai roads from Albany TO
Buffalo, which be built for one hilf the amount
of the stocks of the present Companies, would be
most productive investment and nothing would
conduce more surely to the construction OF such
line than a successful combination OF these Compa-
MES, as now proposed, to build up, through Canada
a road coniessedly hostile to the majority oil the
railroad interest OF the State OF New-fork.
The projected Canada Road, 1t Is estimated, 10y
those who urge this subscriplon,) can be built Tor
about %, OO0. The means are proposed 10 De
procured as follows
+ Stock tnh &c IN Canada by Municipal Corpora .,..
(. Do. DO Individuals --.-.-.---------.------ Io9oo
8 Do. yet 10 be procured oo o0'SVo
S Do. subscription TO be obtained IN the oni ooo ooo
TED STATES ty,,
s. A d,Jt to be cont acted BY the Road --. 2659eoe
Total 81 tOO,DVO
Here. then, It appears that the stock Is all to be
taken with the existing incumDrance oil oeo' OF
equal amount.
The history of railroads shows that estimates OF
cost when put forth with view to obtain suoscrip-
tons are very unreliable. Ii IS saier TO rely upon
ascertaned facts than upon any conjecture oil En-
gineers or Committees.
II is sad that the general face of the country IN
Canada is much like that in Michigan We Will as
sumo therefore that his Canada road may be built
and equipped for the same cost as the Michigan
Central Road which is the same length, 22s miles.
Assume also tia; this cost IS represented In the
same way BY
81 63s 0CO Capital StOck.
81 900 go Debt.
50 $3.50
Assume also that the annual cos, for operating me
road rHcludlng interest IS equal 10 that on the
Nichgan Genital Road for the year ending lst June,
1881 belne according 10 q cir official report sol5 800
Now rs perfectly well understood that the pro
pfouosed Csnada Road. for most OF rs distance,
passes through country which Is thiniy seIa.o'