The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-18

Increased cost in year 1924 2S3
1t is well known have clearly sho wn, that por
ton Of this great increase in cost caused by taking
in outside lines roads which have to do with
the through business Of the Central Company than any
road in New Jersey. The addition OF more than seven
and half millions ofdoars to the cost of this companys
roads in year, is small affair compared with the
arocous swnde pacsed under the act Of constellation
The fraud Of that act must appear every annual report
made The Legislature requires every railroad company
to state the cost of its road its capital debt &c., aud
the Central Company il obliged to state the cost OF ts
line ndependcntof its capital &C. These returns must
often made exhibit to its ignorant and ususpecng
stockholders the fact that the acknowledged cost of the
road ranges between fourteen and fifteen millions OF dol
lars, under the total Of the companys capital floating
and funded debt The act of consolidation added at one
stroke OF the pen that the nominal cost Of the
road.
The net earnings of the company have to provide for
the interest fifteen million Of Indebtedness before tho
stock receive fraction Of dividend. The actual
acknowledged cost Of the road exceeds by nearly
millions of dollars its capital stock The fifteen millions
added by the issue of bonds to pay for imaginary roads
and for imaginary value roads actually existing, is
equal to about forty per Of the total amount of
stock and bonds outstanding. This forty per ceat
represents real value any than the two millions
Of New Haven Railroad stock issued by Robert Schuyler
represents value. The stock issued by that distinguished
individual amounted to forty per cent OF the total stock
and bonds of the New Haven Company and that issue
deprecated the entire capital and debt of the company
than fifty per cent; and when it is known that
the issued stock be compromised at dis
count, the old stock and bonds continue enormously
depressed. The central consolidation clique in ssu-
ing fifteen millions Of bonds, showed great
deal moro shrewdness than Schuyler, for they
sadlled the company with debt which precedence
all stock and secured fair market value for TIL r
bonds by compelling the stockholders to guarantee their
payment. Schuyler issued security OF less actual value,
for 1t must be cassed with the old stock Of the New Ia.
Company. In law there may be great deal of diff
ference between the acts of Schuyler and those of the
Albany consolidating clique The former has been
PEELED to fly his country and live in foreign land
outlaw execrated by the widows and orphans whom he
has beggared while the latter franks in all the elements
of character and business capacity among the best
in the State" II there is any moral difference between
the issue of two millions of New Haven Railroad stock by
Robert Schuyler and the issue of five millions ofNew
York Central Railroad bonds to pay for railroads which
never existed we should like see the distinction point
ed out.
In opinion, and in the opinion Of all who clearly
Understand the matter, they both par and they
must exist in the community where guilty of either
sustained and ranked among the best men-a very
loose condition of public morals to say the least Had
the New York Central Railroad Company discovered
Schuyler among it's managers who had fraudueny issued
five millions Of stock the entire capital would have been
dpreciated from forty to Fifty per cent? but the Issue Of
the amount Of bonds, representing value
than schuyler's stock, initiates the value of the
psnys capital and the stockholders appear to rest per-
fectly contened They know not Of the volcano upon
which they sleeping. We have sounded tho
note Of warning In season. II the stock
much depressed as Exile we would advise The
stockholders to hold on, and IL something could
not be done towards reforming the extravaga zee
and Encouragement Of the company's fnances bu. it
is much inflated beyond its real value, that those who
wish to avoid the loss which must surely result from
present policy pursued by the directors cut them
selves loose without any great sacrifice, and find uvc
ments tor their money in roads which not only have
something TO show for the money expended in their
structon but roads which earn the dividends paid 10
stockholders.
The capital stock funded and floating debt of the New
York Central Railroad Company, according to the INST
reliable reports, are as iolows:-
New YORK CENTRAL RAILROAD 1855.
Capital stock. $23 eS5, 100
Funded debt Observation-Disclosures. .......... 14587,st5
Floating debt. Observation-Disclosures. 10000 70
Total. :...... ACKNOWLEDGEMENTS. $50, 553, las
Cost of road and equipments (see Engineers
reporD.. % 907, s74
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