The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-12
NEW YORK HERALD, MONDAY, FEBRUARY II, 1855.

Syracuse and Utica, 1888; Syracuse and Rochester,
l64; BufiAlo and Rochester, l84; and Mohawk Val
ley, Q road never made, or intended 70 be made,
1853.
The total cost of the whole road IL represented to
be $50 1853, 423, Of which smount $40, 773 1913 Ia debt,
and the balance, $23, 0s5 600, capital paid In. The
length OF the road between Albany and Baffalo Ii
only z9S miles. and the entire length OF the whole
line Of the roads above mentioned, now called the
New York Central Railroad, Ii 504 miles open.
The part Of this debt which was crested to repre-
Gent the prices these stocks we're selling at when
the consolidation was made, above the amount Of
capital actually paid in. which is supposed to DO
about the whole debt Of $40, "a, 1923, and perhaps q
greater amount, is entirely fictitious. The law
limiting the dividends 70 ten per cent annually up.
on the amount Of capital actually, fairly, and bo-
nestly expended, viii not justify the payment
Of the principal and interest upon bonds made
and issued in confederation Of the fictitious
prices paid at the board Of Brokers for the stocks.
These bonds, to the amount created to represent
the prices the stocks were selling at above the cap
ital actually paid In and used in constructing ard
equipping the roads, should be extinguished or de-
clared void by our Legislature, or at least the rates
Of freight and fare should be reduced for the benefit
Of trade and business facilities, to such o degree a.
TO produce no more than ten pet cent annual divi-
dend on the amount Of money actually paid in and
expended in the manner contemplated in the law.
II viii be very difficult, unless an sppraisement ID
made. to ascertain the actual legal capital Of this
road, Is q large amount Of the capital Of the respec.
tive roads was injudiciously expended in the CON.
~struction Of them, and paid back to tho stockhold-
ers In the name Of dividends, commencing from the
organization Of the roads, long before the same
were completed or had earned any money. It is
certain, however, that the whole 504 miles open is
not now worth, and probably did and surely should
not have cost, more than SIS 900, 600, which is
10000 per mile, and that the same can now be
built and equipped for that sum. This estimate is
made by a comparison with the cost Of other roads
which were recently built. The Br ,oklyn city rail-
roads, which were built last summer, with the best
Of materials, and fully equipped, only cost. includ-
ing Che taking up and ~repsising Of the streets,
$4,000 per mile; and the Illinois Central Railroad,
which is 73l miles long, including equipments,
about I'll, O00, 900, which Is 500, 900 a mile, when
the labor snd materials Of every description were
extremely high.
The Central Railroad has lately declared two
semiannual dividends Of four per cent each; but
the interest on the $40, 773, 1928 Ia also paid out of
the earnings, which, added together, will equal divi.
dends OF at least sixteen per cent, indirectly maze
in violation Of the above mentioned act OF 1850,
which restricts all dividends to not more than ten
per cent annually on the amount actually expended
In constructing the road. The above roads we're
appraised at double the actual cost Of them when
they were consoldated-some of them having re-
peatedly increased their capital to pay or the cost
Of repairs and expenses, which should have bsen
paid out of the income, and for the purpose of indi-
rectly making dividends above the amount author.
lied by Law. Many commenced paying divi.
dends TO the stockholders soon after the sub.
scription was made for the stock, before the compile
ton, Of the same or anything had been earned. This
course was pursued by the Utica and Scheme stady
Railroad, which is supposed to have been admira.
bly, managed from the time Of the distribution of
its stock. In the year 1910 il paid O dividend Of
twelve per cent, with o yearly incre asing surplus,
and afterwards made several extra dividends; but
at different times increased its capital, which re.
duced the cost Of this stock TO sixty per cent to the
original stockholders.
With the three millions Of bonds lately issued,
the capital stock and unpaid bonds now amount to
$50. 1855, 423. The stock was sold at l22 in the
Bosrd Of Brokers, on the 27th day Of June, 1854,
and has since been sold AZ low as &c; but the latter
price Is fifty per cent above its value. No charter
is now required to auth orize any person or person
to build railroads. Any number OF persons, no.
less than twenty-five, may form o company for the
purpose of constructing, maintaining and operating
a railroad for public use, In the conveyance Of per.
sops and property, and make ard Hle articles Of
association in the CHI e Of the Secretary Of State.
A direct route from the Hudson river at Albany to
Buffalo, may be made much less than two hundred
and ninety eight miles, and, ct the rate OF $50, 1000
nile, IL would cost less than 80, 200. 600, which Is
about one fourth Of the capita; stock and debts Of
the New York Central Railroad. The business and
income OF this road during the past year have far
exceeded the amount Of the same In all proceed.
Ing years, and, indeed, all expectations, and
greatly diminished the revenue OF the
Eiie Canal, and the profits Of persons en-.
gagged In transportation on the same; not
witbstandiDg which 1t is now said, the rates
must be raised to enable the company to pay divi.
dends, by the very men who were directors OF the
companies composing the Central Railroad before
the consolidation, which year after year, from the
day Of their organization, paid dividends Of 10, IL,
ard IA per cent, and some Of them extra dividends.
The article OF agreement by virtue Of which this
road was organized has never been published, or
its terms publicly made known; but Il should have
been filed In the Comptroller's Office; and whstever
Its nature may be, the Legislature arc required TO
reduce the present. rates OF freight, fare and other
profits, pursuant to the SD section Of chapter I4O
Of tbe laws Of 1850.
The annexed statement exhibits the quantity aad
value OF foreign dry goods entered at this port tor
consumption, for warehouse, and also the wi.hdra.
ais from warehouse, during the week ending and in
GLIDING Thursdsy, Feb. 8, 1856
MOVEMENTS or FoRnoS Oar GeoDs.
Entered for Consumpt,on.