Democrat and sentinel. [volume] (Ebensburg, Pa.) 1853-1866, 1856-04-23
: From the Philadelphia Inquirer.
Interesting Correspondence Pennsylvania
Railroad.
LETTER NO. Y.

Deacon, and others
Esteemed Friends In my last [ detailed
some proceedings of the Board which l con-
scientiously believed that my duty as Direc-
tor compelled me to resist. became, there
fore, placed in an antagonistical position with
my associates. And now, being put upon my
defence, hope my late colleagues, with their
laurels green, will bear with me patiently |
whilst detail calmly few more matters about !
which we disagreed. The question is not now
who was right or who was wrong am en-
deavoring to point out the reasons for my be-
ing so unceremoniously and secretly disposed |
of on the day of election
There need be alarm about exposing the |
secrets of the Board. All these notions |
about keeping stockholders ignorant of the
transactions of their own agents, are, to say
the least. ridiculous. The anxiety about Sc
crecy VIII never exist, when Directors and
officers of the company are conscious of hau-
ing performed their duty nth a single eye to
the interest Of the company The first time
perceived that the President treated the
Board as mere cipher, was when he started
a new passenger hue from this city at twelve |
o'clock, NJ. This was a measure of great
moment, invol wing a large amount of money, |
and required deliberation and calculation.
But, Notwithstanding its magnitude, it was
done in the name of the Board, without the |
Board being consulted, or even knowing of
it, until it was done. Attention was called
TO the circumstance of thus permitting the
Board to be treated with indifference. Ny
associates were reminded that the words of the |
charter were that" The President and Di- |
rectors, for the time being, are empowered to
exercise all the po,cers granted to the corpora
fion." If the President were alone to exer-
else all the powers, there was no use for
Board of Directors. 1t would in this way be-
come meIe automaton. My words fell un-
needed. The next thing I noticed was, that
the President went off with all the poacers of
the Company, to represent it in Railroad
Convention in New York, without any author
ity from the Board, and without single mem
ber, so far as [ recollect, knowing anything
about it. This convention was held in great |
state at the St. Nicholas Hotel, and lasted |
several days, making regulations to bind all
the Companies thus represented. The New
York papers published the proceedings, and
when our Directors were asked by the citizens
what it meant, they were obliged to acknowl- |
edge that they did not know. The President
had gone and taken the keys with him. The |
President would also repair to Harrisburg to
procure supplements to the charter, without
ever consulting the Board, and explaining the |
object and necessity of such legislation. These |
frequent applications produced disgust Oh the |
part of our State authorities, and rendered |
our Company unpopular at Harrisburg
During the winter just passed, having OBJ |
served in the Inquirer that bill was reported |
in the Senate, by Mr. M'Clintock of Allegheny, |
for the Pennsylvania Railroad Company"
/ wrote to Senator to know what it meant |
He sent me the bill The first section was to
perfect a title to property in Pittsburg The
second section was for the singular purpose of
enacting, by the authority Of the State, that
the Pennsylvania Railroad acns completed in
the meaning of the second section of the sup
plement to the 9th of March, 1S4S" There
was notable discovery that the road acas COM
pleted l looked at the second section refer
red to- and found this yery acise provision, viz
=" That the Directors are authorized to pay
the shareholders, in each year, interest at the
rate of g per cent, per annum, on all install
ments paid by them, which interest shall be
charged to the cost of construction and continue
to pay the same until the road shall be compile
ted; and that until the period for which
dividend shall be declared, all the profits and
earnings Of the said road shall be credited to
the cost Of construction Could anything be
wiser than this provision What then was
the object in getting the Legislature to enact
that the road loas completedP Are there not
one hundred miles of the second track vet to
lay? There could be but two objects in view
in procuring this legislation Either to get
rid of paying that 6 per cent, to the sharehol-
ders, or to carry the profits and earnings of
said road to some other purposes ttan the cost
of construction. Not understanding the OBJ
ject, and not knowing who was the prompter
| informed the Senator that the bill did not
emanate from the Board of Directors of the
Pennsylvania Railaoad Co, that there must
be a snake an it and desired him to strike out
all after the first section. This was done 1t
afterwards appeared to me that accidentally
struck the President, who was the author of
the bill, but who never condescended to ac-
quaint the Board with his intention. or acith
its object. The President went to Pittsburg
sometime late in the fall, to see about, as |
understood, the building of a separate depot
for Leech Il Co But it appeared afterwards
that 1t was upon more important business
When he returned, he laid before the Board
printed document, stating 50 that John Ed
gar Thomson had agreed to lease, for twenty
years. the Ptttsburg and Steubenville Rail
road" That said Thomson and his associates
were to furnish the means to complete the road
and derive all the profits over six per cent"
DC &C. This matter was published in the
Plttsburg papers, and copied into our papers
before our Board knew anything about it.
From these publications the impression was
made that the Pennsylvania Railroad Comnanv
was to furnish the means to complete the road
Means were taken, however to let the public
know that our Board had not the least iutima-
tion that anything of the kind was in contem-
plation- This could not be done without
crossing the Presidents path. l declared
against all 't entangling alliances" with other