The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-07-06


Deficiency carried into construction 1856 ss5o23s IS
Since the report for 1855 issued this company have
put out large of bonds bearing eight and per
cent interest with farm mortgage bonds attached, COL
lateral This new issue already about 81 800
ooo which swell debt capital OF the company
nearly ten million of dollars The gross earnings Of this
road for the six months OF the present fiscal year
ending July about s3l5, 600. The net income
slCo 900 pay interest amounting TO 900 for
months say nothing about the sinking fund and
dividend.
II the discovery OF such facts have presented
that has destroyed all confidence in railroad stocks The
public have last become convinced that railroad com
panes have general thing been created and carried
upon q false and fictitious bases, that they have
been unproduciive from The start, and that the
only parties who have made money out u tho
work are those interested In contracts for ooustruc
ton. We have shown that in the Mwauic and
Mississippi R,lroaS Company, several OF the director,
were deeply Interested for construction, the
profits on which ~crc ed at six hundred thousand
dollars. II is well known In Milwaukee that several indi
v'dua 10 the board OF management In the Nil sarie and
Mssssippi Railroad Company who went TO that city few
years from the Eat poor railroad operatives ae
rolling In wealth and living in paata residences Of
their construction. Stockholders In railroads have
for years shut their eyes and 10 all reports OF fraud
and extravaganza They would not believe any OF the
stories about msmanagemen and corruption, and went
along In blind confidence investing their Ia oompa
mics which earned quarter part Of the dividends
paid. Thousands suffering for their credury and
Thousands will be ruined. While the managers aud al &C
tors have been amassng fortunes thousands OF families
have been plunged Into the very depths Of poverty II Is
n source Of great satisfaction tina, done every
thpg power TO avert this calamity 10 toe outside
stakeholder. We have given the public all ne acts In oil
the earliest and cautioned them against
railroad investments generally. Many have proaacd
BY our Efforts and advice, but there many
widows and orphans whose all Is locked up in
some worthless railroad socury, and who have 10
turn their attention 10 devisng ways 10 q
livelihood. Tho directors or the Michigan Southern,
the Milwaukee and Mssssip Illinois Central, Grcs, West
ern wabash and Lake Erie Cleveland and roleo and Co
zen others We could name have much for In be-
rayDg the rep,std in them Ms question in our
mind ii they are rot liable to q criminal pro,ecuuou.
Tia. they have been guilty of criminal as that
they have perp,rse Of the most stupendous
clcs OF the age and literally robbed the community by
putting forth what they knew at the Tine 70 be false
ports and statements, there be in the mi Of honest
men doubt, and believe that than half the
railroad managers OF the country could be indicted BY
honest Grand Jures Every day brings 10 gh. something
new In the way OF railroad fraud, and the only say
avoid further Losses IL 10 realize AL railroad
stocks We bold any hope for even partial
recovery In most Of In tho market Many OF
them musi go entirely out Of sight rather become 70
covered up with the different classes OF bonded Indebted
70 be utterly worthless except ~ footballs In nj
street We cannot advise any TO hold any OF the
Glars Of deprecated railroad stocks at present prices
for there nothing the fun but bankruptcy and many
years of Insolvency BY realizing even at this lae day
little nay be saved from the wreck by omisng to do.
al may be lost
From the Chicago Democratic Pres We learn that the
Chicago and Joliet Railroad Company have commenced the
construction Of their direct line between Chicago aud Joliet
This read s To be constructed by tho terms Of the cou
tract ready in hundred days. and will be the
continuation of the y. Louis, Alton and Chicago road
Governor Mason tho President Of tho latter has infused
II his wei known energy, with the view Of completing
the shortest possible ur1e this independent connection
Cor his road With Chicago. The trains OF the ~ Louis,
Alton and Chicago road from Joliet 10 Chicago
over the Chicago and Rock Island road and pay monthly
to the latter company from ten TO twelve thousand dollars
When the direct road completed, a. will only Oh
this II the CT the Chicago and Rock isaio
read but will take from the ocsl business Of joliet aud
It's vicinity the road being saving in distance o.
some seven miles. II vrl also groa ~ bcnef, the s.
LOUIS Alton ard chicago road. and must, by i's grsa IN
creased busite scon place that road ioo!aS elua
TO any road In the West