Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1855-09-27

toned are:
l. That the State should give the Rail
road Companies authority TO borrow on first
mortgage enough to complete the roads as
now planned, the Stale holding a second
mortgage.
2. The State 10 give the same authority,
but to hold her security in the form of stock
preferred over that Of all olhcr stockholders,
which is equal in amount TO thatheld by
State.
The two first propositions are very near
" similar, that is whether the State retains
the security of a second mortgage, or Of
stock preferred over all other stockholders.
In either event the present stock, equal in
amount 10 that that would be held by the
State, must be sacrificed before the State
loses anything. In which of these forms
the State security is retained is only mat
ter OF convenience, and will not materially
affect the progress of the roads. In the
event, during the progress Of the roads, that
the State had 10 pay any of the interest, it
would be easier to sell out portion of the
/ preferred stock, rather than have TO sell
/ the whole road under a second mortgage, as
the same value would attach 10 preferred
stock that would 10 the second morigage;anu
then it ght add TO the credit of the first mort
gage bonds with foreign capitalists to show
certain amount Of stock as security, instead
Of half that amount, and one-hali of second
mortgage. But this is Of secondary impor-
tance, for we do not believe, with prudent
management, that the State will ever have
to sell to pay interest or principal.
While we recommend liberal legisl alton
TO enable the companies TO procure the means
to construct these roads, we would also re-
commend very stringent legislation TO secure
honest and economical management. This
last, in the bill pending before the State
Senate, it was attempted TO secure by
providing for two State Drectors-a Board
} Of Public works not having enough contro
TO give the odiun that, as shown by every
experience, attaches to State works, bu
enough to have control over and compe
prudent and honest management by requir
ing a sufficient sinking fund TO be establish
ed for both Railroad and State Bonds, anc
also renewal funds to keep these road
> in condition Of first value; all this to b.
provided before the stockholders could hav,
any returns from their investments.
We would therefore recommend the fol
lowing as an outline for general legislation
That tie State gire to the Railroad Compa
t nies the prtr,icges Of moHgaging these road
for enough TO complete them, and no more, re
serving 10 the STATE second mortgage Q
preferred stock, as may be deemed most adUl
saJle. That the Companies berequired 10 pro
Uide sinking and renewai fund: and that hon
est and prudeat management be secured By
e controlling Board of Public Works; constar
publications oftheir affairs, and such othc
Z, provisions as may be compatible 1rih a td'
q progress ofMe w0h.
Inc ldllToau coTIOTalLOHS we ltprCscN
Il are composed as follows, the whole stoc
. being about $3.50, 600:
II Taxpayers in city and coun-
=, ty Of St. Louis .... ...... $i,25O,OOO or 53-l(
. Taxpayers in counties on
e Pacific, Rail Road holding
10 stock ...... '..... ....'.'. 590 600 or VI,
Taxpayers in counties on n.
II NJ Railroad holding stock 535, 600 or S-lC
Taxpayers on 5. w. Branch
holding stock ...... 100000 or J-lt
j, Corporate stock Oh the Iron
10 Mountain Road. ...... 100000 or 3-lt
individuals in ST. Louis, Cav
eraglng eacl S ,G6d) ...... 100000 or lI-lt
>, IUdivduuS IN county (ave7d-
gug each $780, '''''''' 31O,OoO or o-l'
This represents q voting population
'e about 81 800.
.' By, these Directors are elected from amor
"" the public spirited men who are willing
serve. They receive no salaries; have l
le perquisites; no means of specuIa'ions
lie lands over any one else who takes the trol
e. BILE to inquire, and if they have such
or means OF being present more frequently, "
SO are not aware, and DO not believe /! has ev,
l. been used. The Directors have only Il
= privilege of being abused, in their corpora
st capacity, by dissatisfied individuals, {
nc which there are many everywhere with
c. without reason, )who would not dare do so
" them individually. The Directors ha
to been, and of necessity must be, chosen Irc
ly among the most prominent citizens, as
Is ing the best known to the stoc >holders.
III We have above stat
o' briefly the outlines OF the Railroad inte't
. as in our judgment it now stands, from
II perience derived from our present posiil
~ OF trust--positions that we DO not desire
III hold longer than until those interested sh
o' find others that they prefer shall assn
- the responsibilities. As citizens OF
'" State we are deeply interested in its P