Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1852-03-06
CORPORATION SUBSCRIPTIONS.

oil rail- road company, that the amount
of the subscription must be levied upon the
tax payers and heavy burden thus impo-
sed upon the already overstrained powers
of the people. In accordance with this
view of the case, it is not surprising that
many persons are strenuously opposed to
any stock in the rail roads which will so
essentially benefit our county, being taken
by the County Commissioners or Borough
authorities.
1t will be recolected that law has Just
been passed authorising the Rail Road COM
pany to pay interest on all instalments OF
stock from the date OF the payment to the
company, at the rate Of 6 per cent per an
mum, until the completion of the road
The interest thus paid by the company to
the stockholders is to be charged to the
cost of construction. Now let us suppose
that this County subscribes two hundred
thousand dollars; and, for the sake of rem
dering the calculation more simple, that
the whole amount is required to be paid on
the first of July 1852. To meet this de-
mand the County Commissioners will issue
their bonds for sums varying from one hun
dred TO five thousand dollars, those of
small amount payable on the 1st of July
1860, and the larger ones payable in 1868,
all bearing interest at The legal rate from
their respective dates. They will then
hand these bonds to the officers of the rail
road company, and receive certificates of
stock TO the amount of 5000, 900, also bear
ing interest from their date until the COM
pletion Of the road. On the 1st day of
July in each year until this completion, the
County Treasurer will receive this interest
amounting to $4,000 which he will APP
ply TO the payment of the interest on the
bonds. So that the tax payers will not
contribute one cent towards the liquida-
tion Of the interest. In the mean time the
officers of the company will sell these
bonds to capitalists who have funds to in
vest and thus raise the money upon them
without the aid of any taxation of the peo-
pie of the County.
But these bonds will some day become
due and then the principal will have to be
paid.
The rail roads throughout the United
States all are now paying handsome divi-
dend upon the capital stock. Some oi
them pay as high as 40 per cent, others
pay as low as IS or 10 per cent. Now
Erie, iiny9al from the seaboard to lake
hanna, it is universally admitted" IS SS1osiHpe. oiHp
tue most important roads in the Union. and
the amount of business in the transporta.
lion OF products, manufactures and passen-
gers Will be immense. There is probably
no road which will do heavier business
The grades are light and the construction
easy. 1t will be completed at moderate
calculation, in three years, say by the 1st
OF July 1855. The stock which the Conn.
ty owns will then be worth 100000. if
the road pays six per cent, and there will
De paid into the Treasury from the divi-
dends semi-annually, an amount of money
sufficient to meet the interest on the bonds
mus when the bonds do become due. the
Commissioners have nothing to do but sell
their certificates of stock ard the proceeds
will pay the bonds. But this road will
pay more than 6 per cent. 1t will nav %
per cent, and the County will receive S24,.
ooo every year, $4,000 of which will be
applied to paying the interest on the bonds
ana Sl2,ooo to the yearly expenses of the
county. And the certificates of stock will
then be worth double the amount paid for
them and be eagerly sought after and DUR
chased. The County can then sell out one
half OF her stock and realize money enouob
10 meet the bonds as they come TO maturi.
~ and retaining the balance, receive =
yearly dividend of $4,000 from them--an
amount amply sufficient to meet all the
current expenses of the County, witbou,
esort to taxation.
Thus it will be evident that not only do
he fax payers not contribute to the sub- :
crlption of the stock, but they are abso- !
lteiy reliered from the payment of tar for
'o"nfy purposes by the dividends received '
ON the stock. r
in'S is the practical working of the Il
heme, which no man of common pnder- l.
andIns can fail to comprehend and ap- s s
'ove. The road proposed will be of i'm 3,
ense importance TO the public, and everv Jc
n'v'dual in the community will receive F.
calculable benefit. II will give an impe- "
$ to enterprise and industry, and develop E Z
magnificent resources of this valley "A
hlch have been for ages lying barren and "a "
productive. ue m