The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-05-02

low rs % 1Or ID per cent 5tock.
In April, lSi2, the com pany placed its affairs in
the hands Of assignees who under Its com plicated
endorsements, arising from the nature and
amount Of its indebtedness, by the most skillful
and perseyering Efforts protected its interests, and
kept the Eastern division in successful operation.
AT the annual election in November, 1872 those
previously in the board having declined, with one
CT two exceptions, new direction was chosen, and
William Maxwell, Of Chemung county, was ap-
pointed President.
In April, 1913, the bill known as Faukner's Bill,
was passed, by which II was intended that he State
lien should be released on certain conditions, and
that the bond of the company, for the three mil
lions should be issued first lien on the road.
The object, however, was not attained. The bonds
could not consistently with some provisions Of the
bill, beissued to aid in completing the road No
efforts made this year towards resumption of
the work by n subscription to the stock, or other
wise. Mr.. Faulkner was Senator from Livingston
county, and first introduced his bill for the relief Of
the company, at the session 1912, when it re-
jected but passed. as we have stated, at the fol-
lowing session. The directors in April 1872 stated
that had the bill passed when first introduced large
additional subscriptions would have been obtained
in this city and on the line Of road, favorable
tracts for iron scould have been concluded, and the
road from Binghamton to Lake Erie would have
been put in during the year 1872. The directors
also state that +" the amount due contractors for
work, subsequent to the notification in November,
of the exhaustion of the state loan cannot be less
than S5OO,OOO" The interest due on the State
loan on the LIST April, which the company failed to
pay, they say amounted to about 5000; and, in
explanation Of their sudden emba rrassments they
remark -" In the latter part of December. 1871,
state six per cents suddenly fell to IS per cent the
scarcity of money increased, demands for Temporal
~ loans to the company were made, and the stocks
hypothecated were sold ut prices ranging from
the ~ to 81 per cent"
1t is proper here to state that hen the work was
suspended in 1872 the contracts west Of Binghamton
and thence to Lake Erie, were in such a state of
forwardness, the grading being nearly complete,
that the 2O miles Of road west could have been put
in operation within the time stated, in 1872. This
is proved by the rapid manner in which the western
section has been completed under the auspices of
the present directors, notwithstanding the dclapi
daton Of former work done, and the change OF line
OF the road at various points
AT the election in October, 1913, an entire list
OF new directors was chosen, and Horato Allen was
appointed president. This board, after laborous
examination of the affairs of the company, published
the result in a report The conclusions to which
they came, with respect to the value of the work
which had been done, the operations the eastern
division, and the promise of productveness from the
whole when finished, such to encourage
them to endeavor to obtain the requisite means.
In their view in that of those who preceded them
six millions of dollars nccessaryo complete the
unfinished portions Of single track Of the road
from the Hudson to Lake Erie. AT that time the
amount paid on the capital stock Of the company
81 l9S j9i, and their indebtedness 1897 072 ex-
elusive of the three million State loan. Adding
these to the six millions then required and have
of the road from the Hudson to Lake Erie. Having
failed to obtain the cooperation of the Common
Council of New York for subscription of three
millions TO the stock, by the loan of the credit of the
city, and in subsequent application to the citizens
for the required amount, the directors proposed to
have recourse to the bonds contemplated in Faulk-
ners bill. These bonds, however, were unsaleable,
it being found that they would not bccoms lien
upon the road prior to that Of the State, except in
the event Of the work being finished within the time
prescribed in the law; to accomplish which three
millions beyond the authorized amount Of such
bonds was necessary This result, with partcu-
lar account of their proceedings, they published in II
report To the stockholders, in October, 1874.
At the annual election of directors in October,
1914, the unsuccessful board Of tho previous year,
with the exception of two city and two country
members, retired from the field. The new board
chosen was composed a follows-George Grswold,
Jacob Little, John G. Green, James Harper, Flea
gar Lord, Paul Spoford, Stewart G. Marsh, Henry
l.. Pierson, Henry Sheldon, Charles NJ. I.eupp, ].
w. Alsop, Silas Brown, and Robert l.. Crookc, of
this city; d. :. Dickinson, of Broome; A. :. Diven,
&C Allegany; and Elijah Risley, Of Chautauquc.
This board elected Mr.. Lord president, and imine-
diately, on the lst November, 1914. published IN
address TO the public, showing the condition and
prospects Of the company. "To complete the
entire line of the road" they say "six millions of
dollars is deemed necessary and sufficient Towards
this sum tho bonds legally authorized are an clgi
bic and safe reliance for three millions. Ii Is be-
lieyed to be quite safe TO rely upon the interior
ties for further aid to the amount of one million; 80
that to insure the immediate progress and early ac-
compshmcnt of the entire work, n subscription of
two millions of dollars only isrequrcd. With such
subscription the board would have no hesitation in
proceeding with the work, in the confidence that
further call upon the citizens OF this city will be
necessary.
subscription was accordingly opened; propo-
sails for grading about twenty miles OF the road be-
youd Middlct9wn Orange county. we're received; and
contract for a portion thereof being concluded,
the work was resumed in February, lSt,. Applics-
tioL was, in the meantime, made TO the Legisla-
ture for the necessary amendment Of the Law of
April 1873, faulkner billy The subscriptions.
part of which were made condition Of the passage
Of such amendment, were suspended 10 await the
action of the Legislature. TN the 18th of May,
lsj, law relating to the construction of the road.
the release If the stats claim, on condition of the
completion Of the road TO Lake Erie within TX
years, (cxpiring 18th May, lS,I,) subscriptions 10
the stock, Sc, was passed by tho Legislature. Bs
this law, the original subscribers to the stock In
consideration Of the relinqushment by the state Of
The lien on the road, aud to oher inducements TO
new subscribers, surrendered one half 0f their
shares-thus reducing The old stock from oil. 3i
10 -IjS 67, and Of course lcs-enng the liabilities
Of the company to that amount.
Active measures for taking up subscription, were
commenced in 1915, after the passage OF the bill re-
ferrcd to; the merchants Of the city and other BUSH
ness men coming forward literally, 20 that a sub
-eriItiou Of three millions to the capital stock
sOon secured. Mr. benjamin i.od,r, who had been
successful A. a dry goods merchant, was placed in
thc board a. director, and took "a prominent part
% obtaining subscriptions, besides sustann. the
project w hi own example, Ia subscribing Cor "a
large amount If the stock u became apparent
that thc yctc business men Of the city, instead Of
retired capitalists, were the most probable char,,-
tore 10 buug about the completion Of the work. Ii
vas also desired by some of the directors that lr
Lord should retire from the board, and h. accord
ingly resigned a. President July \, 1915. James
lasrer was appointed President yro tsa. the came
day. bat declined scSing permanently a: President,
and thus lost the opportunity cf connecting hi, name
prominently with one Of the greatest public works
81 the age tu the both August lsl, Mr. hodcr
wa elected President Of the company, and ac-
gtpied The office. lie has since applied him
.C.l With energy 20 the work, until he has finally
the Satisfaction Of witnessing its completion.
10 has been aided by associates IA the board,
rrisngsomc ofour most enterprising merchants and
tther business men. On the 2i.t and I'D OF April.
q committee of the directors passed over the entire
length Of tho road, and were warmly welcomed At
buukiik On the elevation about ten miles east Of
that place. they caught a view Of Lake Eric. from
The cars, aud probably experienced similar feelings
70 those with which balboa first saw the Pacific