Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1857-04-17

MN. n -. vrersId ana the Cleveland a
~" w. ToieSo Railroad stock.

discrcdit upon tho present management Of
the Cleveland a Toledo Railroad, and be
exciting the fear Of the timid, to depress
Tho stock Of that Company.
In the Money Report Of that paper for
March s1st labored eulogy is given Of
tho management of the Buffalo & Eric
Railroad, and its business; its economy is
spplauded, and mainly credited to such
mon rs James S. Wadsworth and George
Palmer, who look as closely after the er-
penditures, as they do in their pricdte ope-
rations. "TAis Road" says tho Herald,
"edrns just enough to pay the interest on its
de5t, and diuidends on its stock" This is
represented as one Of the most successful
Railroad Companies IN the country, and
that after paying the interest on its debt,
and dividends IL has no surplus After
saying so much, for a striking constrast, we
have the following:
fla road ninety miles in length, with but
one track, costing but S3,ooo,0O0, and do
ing principally passenger business at high
rates, rubbing along in this close way, what
can we expect Of company with only
about the same length ofroad, having nearly
three times the amount of debt and capital,
doing business at lower rates on account of
powerful competition, with two separate and
distinct tracks to support ia this city and
high salaries to transfer and register clerks,
with the most expensive and expansive sys-
tenn of financiering ever practiced by any
incorporated company, not excepting the
old United States Bank? 1t is hardly nee
essary to say that we allude to the Cleve-
land & Toledo, in comparison with the Buff
falo and Erie. When it is admitted that
the Buffalo and Erie just makes out TO pay
tho dividend and interest and cost of three
millions, the public can form pretty correct
idea of the ability of the Cleveland q To
ledo 10 pay the interest and dividend on n
cost of eight millions of dollars for about
the same length of road between the ter
mini.
1t appears from the above that the OBJ
jeet Of the New York Herald is, at Mis
present time, to affect the stock of the G. &
T. R. R. Co. prejudicially, and by misrcp-
resentations and fabrications, to create fear
and distrust among the holders of this stock
in the East. For the benefit of all such, VIC
have something to say.
We are somewhat familiar with the man.
agement and affairs of this Road. We
have had ready access to the books and af-
fairs of the company at their general Office
in this city, where their accounts of every
character arc kept, and balanced monthly.
These books are open for tho inspection of
any stockholder, or fair dealing Editor, at
all business hours. We are we'll acquaint-
cd with the officers of the company, the
condition Of the road, and its equipments.
From an examination of the books of
the Company, we ascertain the earnings Of
the year ending June 1st, 1855, to have
been $3.50, ,s2O; to lst, 1856, 1901, All.
For the current year ending June lst
based upon earnings already made, and an
ticipated earnings for April and May, it is
safe to estimate the year 1857, to exceed
$l,2oo,oOO. The earnings of the six months
ending May lst estimating the present
month by the present business and the earn
ings of April, 1856, will amount to $637,-
26l. We do not consider it extravagant
to estimate earnings of tho road for the
year 1861, ending June lst, at $4,000, 900.
Our present limit will not allow us to give
IN full the basis of this last estimate. We
give below facts, which enable all stock
holders to make their own estimates for the
future by the past and present.
The Company is spending no money for
construction, nor are any constructions nee
essary. The Road is in excellent condition,
and will compare favorably with any road
in the country East or West. The equip
ments are ample for present uses, and in
first rate order. The floating debt of the
Company can at once be discharged by a
sale of its present assets, which arc more
than sufficient for that object.
We are far from believing that men who
get up Commercial and Money articles for
q Wall Street market arc always we'll post
ed as to facts relating to Western roads, to
say nothing of disposition acquired there,
to pervert those already known. We find
in the money article of the N. Y. Herald,
Of the Sd instant, the following:
Cleveland and Toledo sold at 721 per
cent cash, but most of the sales were at
sellers option. This frmncss can be attrib-
uted, we suppose, to the prospect of cash
dividend some time this month. This div
idend will, without doubt, be made. and as
we have before remarked, will be made from
che proceeds Of stock recently sold at the
board, to the extent of four thousand shares,
as it will take that quantity of new stock to
provide the required sum, say $4,000
By this operation 1000 shares will be add
ed to the capital stock. How much better
it would be, if such a new issue of stock
must be made, to apply the proceeds to the
payment of portion of the floating debt
which has for some time past been very un-
wieldy and troublesome, and carried at a cost
Of two and three per cent. a month. Divi-
dends must however be paid, we suppose, at
any sacrifice; for as long as they arc paid,
the inside managers, imagine-and gene.
rally we are sorry TO say too truly--that the
stockholders are deluded into belief Of the
pretended merit Of the securities they hold
Here, and above, we have two short par
Agraphs and fire positive fabrications.
lst 1t is positive fabrication that tho
@. & 7. Road Is doing business at lowel
rates than the Buffalo ~ Erie.