The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-04-25
will be further railroad Delinquency on the Is, Of May


Railroad Company Of Illinois failed 10 pay me inte-
res. que on lts first mortgage ten per cent bonds
rms Is NE mos important and drdceM act Of rdnpsd re
pudoton 'chtoh has ever taken place in this country The
directors and stockholders Of this company among the
richest capitalists in the city OF New York. and several Of
uieh nave been and shl among the leading owhers
and directors of the Illinois Central Railroad The Great
western Railroad WAS begun in 1862 and has Just been
completed Is 1874 miles length, extending along the
latitude Of 40 deg from Naples on the Illinois river direct
~ through The central and most fertile portion Of Illinois
70 the state line of Indiana Here it joins the great line
az miles long, OF the same gauge just c0rnpie<ed 10 Ioe
do on Lake Erie, and forms with that line decidedly the
cheapest and most direct route OF uniform gauge, for
70 St Louis and the central portion of tho Mississippi val
icy al quincy, II will form the chief outlet OF the hann
pal ana g. Joseph's road, 200 miles in length About
year ago the directors published and signed report stat
ing mat the Great Western Railroad when completed
would Immediately $500 per mile, and yield pro
rest on al IT, bonds S on US STOCK sv psyi so n
details OF statistics and traffic.
These capitalists back up their statement by fail.
ing 10 pay ue interest their first mortgage bonds ut tho
very money hen the road Is hnishod and in condition
to do phs,ness The money for which these bonds
were giv~s borrowed to purchase iron and the bonds
were issued at and above par by Of the most eminent
banking firms Of New York. who recommended them 10
banks ana saving institutions being safe and sound in
any possible contingency The bonds are only for $1,000
per mile On the western 100 miles, tho cash cost of the
road having been $4,000 per mile. Gross receipts OF
81 600 earning 81 900 per mile pays the interest
on these bonds and the directors stated that would earn
5000 per mile the first year after completion, which Is
good deal less than the average Of the Illinois
have eat em money the Gath OF their representations
as honorable and leading in point OF fact, tho net
pcnses, though unnshed and w;tss any E.stcrn ron
hecon has been 7Q 000 while the entire interest oh all
It's first mortgage bonds 81 600 of and ~ 600
oi ten per cents has been only el97 500 But il
these earnings have been diverted and have been APP
pied IN good faith To the payment Of interest," for rather
than make up the small sum $50 900 required the
1st Of April the rich stockholders prefer 70 stain them
selves with the disgrace Of regulating their obligations.
quarrel among themselves alleged as the excuse some
pretending indignation mt others for refusing to contribute
their share But the public have nothing To do with their
private qarrc and any amount of indignation does not
Iay ~ ponds ono Tho capital stock behind the bonds Is
S2OOOO 900 about two thirds paid up The mortgage
drnwn that the bondhoders cannot forccose under year.
and the mean calculation appears " be TO rcpudac or de-
lay the payment of the interest until the exact time
sary To prevent foreclosure In the meantime owing N
thus act OF shameful and needless bad faith among men
who through life have been held up to the world AZ
shining examples Of mercantile integrity and puncuaty,
the bondhohers obliged sacrifice property, of the
ultimate security of which there can be no possible qucs
ton. .N ... ......t.
Under all the circumstances of the case therefore, this
has been the icuois disgracefu and nexcusa
pie act oil railroad Reputation or failure which has yet
taken place II Is calculated than any other act OF
tho kind TO shake the public confidence In this class of
securities, both at home and abroad, for many Of these
bonds were eagerly taken in England uncommony
sound and good investment II first mortgage bonds of
this character given for money borrowed ut 100 cents
dollar are to cooy repudiated and dshonorcd n
soon road is completed the public will begin to IN
qure what second and third mortgage and income bonds
Last of ALL stock, eventually be good for. But aside
considerations due regard for hitherto unblcmished
reputation for untirnished mercantile honor and integrity
among TIE parties Responsible for this most dsonorable
and needless act of reputation would have prevented II
from taking place.
The directors of this wealthy corporation have also
manifested gross dsrespect for public opinion In emitting
Ia make any explanation of the circumstances
which could have induced them take the extraordinary
step of dslonOrng their bonds the very of the
completion of their road As the stands therefore,
without any appearance Of Justification must
be looked npon the most remarkable and discreditble
act Of railroad bankruptcy which has occurred in this
country and It IL for this alone that have deem
eli necessary 70 hold up in ~ rne light, example
which cannot be initiated without eminent disgrace. a
very noticeable fact thar the Great Western Com
peny, which in proportion " its capital eourse more
wealthy body OF stockholders than any other In illinois,
md whiel has boastad In ia reports that H. roito lay
through the richest portion, they have termed IT,
"tlrough the garden OF Illinois should At the sne time
be the only railroad corporation in that stato which Is
willing 10 lie under the stain OF dshonorng It's lrst mort
gage obligations.
The annal report Of the Ca,awissa wamsport and
Eric Railroad Company has just been Published. This
work Is daily becoming Of more importance. During the
latter part Of last summer the Caawissa road put
under efficient management and the Pesidenrof the Viii
Transport and Eimra Railroad induced to accept ii
presidency 1t Is web stocked, and will continue 30 b,
vigorously worked. The floating debt has been cxin
guishcd and such arrangements made as Is alleges
viii the continued payment Of the coupons tn
funded debt The entire represented In the road
including construction, depos equipments, &C. Is - To-,
0l6 nearly the whole of which directly the road
The money expended, is believed purchased more q
labor and material at the time OF ts expenditure than
such a would command Tho caTital h
81 O0o the first mortgage 81 900; income bonds,
sri 500 chatte ten per cent mortgage, $12 800 and ten
per bonds, ooo-in all, 1854 O00 exclusive of
sos ol6 OF floating debt On the 30h OF August last the
report shows the componys liabilities and estimated in
follows
Interest at per cent on first mortgage
In,eres, a, per cent on the income BIDS 22i 500 sos
Interest at 10 per cent ON bonds sub - -
Interest ON floating debt, say 10 per
cent, rs If funded. .............,... los,0l6 1882
Total ....................-...... l5o,551
The present business of the road may fairly DO
taken Mt s3oooo per month, though Il Is be-
hcvcd that n will average through the ensuing
year considerably that sum. .....,.,,, 3SOO1O
Operating expenses % per cent. 10000
Total. $50 300
The Catwizsa Railroad extends from Timaqua to
Milton and through region full Of COAL iron, etc
The compan about 200 Of coal lands, cst
mated to contain millions of tons OF coal The Qaakc
branch pascs directly through this coal property aud
this account well Wow 81 the importance Ola
New York connection, deserves attention.
The annexed statement exhibits the value OF foreign dry
goods entered and pu, upon the market during the past
week, and up to the I'D inst in each OF tho past three
years. f
Movnucrs IN FoRpaS Dpy Goops
For ne neck. 1855. 1853. 1851.
Entered at the port sses,503 1,o30,3os 1,775,ss
Thrown On market. eos,l6I go5,7D l,i79S5s
since ydnpa~y l. 1865. 1858. 1851.
Entered nj the port SIS ,go3G @Io53,sO S,M It2
Thrown on marke-H ls366y30 35,oos,IgT 3s15I $50
The dry goods trade the past week, although rather
lively among iobbers than tho preceding week was
below tho expectations Of the trade earlier in the scson
few failures in the trade have occurred during tho
III Il