The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-11-18

l. Issue without legislative sanction.
Not Illegal but the company cannot b sued for the
principal beyond the sinking fund.
Reinbursement appears TO b restricted to what the
sinking fund may produce thirty years hence
esdss the payment Of interest on certificates and their re-
in thirty years. 9l3 against s. 65l which
g. The company pledged BY the certificate to II.
payment Of debt, but merely 70 that Of portion OF
eventual profits.
These figures and calculations exhibit some very curl
ous results The large dividends therefore, paid on the
capital stock Of the different paass forming the COM
bnation have been partially artificial and delusive and
the illusion still apparent in the present position
Of the consolidated oompanys financial affairs The div
dends paid previous to the consolidation capitals
which covered the entire cost Of each road and the net
earnings entirely devoted to that purpose. Now
different state Of things exists There IL Indebtedness
Of than nine millions Of dollars, in the shape Of
bonds the interest which must be paid and the pay
ment Of the principal at maturity provided for before the
stockholders receive single cent in the shape of
dividend The calculations made in the above statement
show that under the most favorable less
than six per cent viii be earned This upon the
capital and with the present indebtednem. This
ia, however, but . part of the amount which
ultimately win be absorbed BY this mammoth, over
grown company. 1t has already been stated that
An expenditure Of fm two to three millions OF DOLLARS
must be made for motive power and rolling equipments
to place the road upon proper basis and that amount
must be added to the funded debt Of the When
that has been accomplished necessity viii no doubt
exist for other expenditures and this company viii
90 on as all other rail- oad companies the country have
from the start done and stu continue to do, steadily
adding TO its Indebtedness until its dividends viii not
only be reduced to the lowest points but the payment
from year to year matter Of great doubt and uncer
tanty the very last moment. We have for years en-
teransd but opinion relative to railroad stocks as
invetmsnr and that opinion daily strengthened and
confirmed by such financial operations the above state
nent exhibits That the general railroad law is uncon
attutonal does not admit of doubt and that the con
hdation Of the Central line OF railroads upon the
tenn adopted is Illegal is equally true. All general laws
granting charters for special purposes whether for bank
ing manufacturing mining, for railroad purposes, are
undoubtedly unconstitutional and will, before the lapse
of many years. by the highest judicial
tribunals of the State they already have been BY tho
highest legal talent Of the country.
It appears by the report of the Board of Public Works
Of Virginia. that for the fiscal year ending on the SOth
of September last the receipts of the treasury, on &C.
count of the internal improvement fund, amounted to
s50s7 42s 81 and with the balance on hand at the
commencement Of the last fiscal year made an aggregate
of l02 4.s 20. There dsbursed during the same
period S5OlOtSZ %. leaving oaidhce Ii LAC Oe1suTy,
on the LIST October. 1862 Of Sel, S45 Ga.
The sum Of SAYS, so7 CO received on account OF
dividends bonus and interest on the productive invest
ments Of the fund and premiums on loans obtained The
amount is s,s4l 81 than was received from the
same sources during the year ending on 3oh September
1852 It estimated that the receipts on account Of
productive investments for the current year, will exceed
BY considerable amount that of the last year The
aggregate outstanding public debt Of the commonwealth
ON the LIST October last is estimated to be $8 75 50
The equated value Of the productive investments held
by the Internal Improvement Fund. the Common
wealth proper obtain which the debt Of the Common
wealth was incurred, is estimated at IS 12l 500. BY
eouated value is meant that amount which, at six
cent ells the OF these stock Therefore, the
outstanding debt OF Virginia. the 1s of October, 1853
less the above value of investments is &c. 215 So
The disbursements account OF loans to internal inn
provement companies to be redeemed in thirty four years,
amounted to ST. 700 O00 The Of 81 l49 552 Sc
paid account of subscriptions and appropriations for
pur roses of internal improvement
yestneps amounting TO 1885, 226 80, which is in
crease 2l2 sc the amount held at the end
OF the sscsl year for 1852.
OF the public debt exstir the 1st day OF January
1852 there authorized be redeemed certain cerf
Gates amounting 1927 s0c. OF this amount thers has
redeemed STA sec 81 and the residue the holders
thereof have not presented for redemption The balance
Treasury to the credit CT the sinking fund.- the LIST
day Of October, 1853, is s13, 754 SO.