The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-04

On comparative examination of the new and old
reports of the new and the old direction Of the Board
of Directors OF the Michigan Southern Railroad Com
pany we have been surprised TO find that the varia
tons between the respective reports present very
little else than mere difference in detail while in
the of the measures projected and carried out
by the first administration there was exhibited
holiness and recklessness leading to consequences
far beyond the tame and timid action OF the pre-
sent to sustain. The old contracted for the pur-
chase, and undertook the completion. Of almost
every road which seemed destined to PUN counter to
their anticipated monopoly, and in 80 doing have in
CURED debts and responsibilities beyond their ability
to meet; and in thus failing to comply With their
contracts, they not only lose all prospective advan-
tage of those incomplete roads, but have subjected
themselves to very heavy damages together with the
entire loss and control of those connections. In the
of the Goshen line, the Jackson branch and the
Detroit and Toledo road-alI a. yet unfinished, not
withstandng they have already cost IS $50 ,000we
have specimen of irredeemable sacrifice from the for
FIXTURE of contract whereby the Michigan Southern
wlnot only lose all they have advanced but the bonds
they hold from those companies win Of consequences
be repudiated from Noncompliance with the terms
Of amRlgamation. In 1866 the Michigan Southern
contracted to aid in the construction Of road from
Toledo to Detroit via Monroe. nOt only agreeing
with the company chartered for the purpose to ad
vance the means Of construction, but gave guaran
tee on permanent lease of eight per cent annual
dividends The time of completion having gone by,
while the guaranteed dividends debt due by
the Southern, the whole road and outlay enure by
reversion to the original corporatos free and indie
pendent. at is necessary" says the report Of May
1857, "that the debt thus incurred for con-
struction be provided for" yet in the face of
this necessity the new board has not
fit to make any arrangements to come to the rescue
The most painful part of the condition of the affairs
of the Michigan Southern Company is the sad fact
that the receipts of therwho line of connections
not adequate TO discharge the ordinary expenses
subecting the road to serious depreciation and GER
tain bankruptcy Of the company from the nonpay
ment of interest 1t is not worth while to go into an
estimate of the value of the common Stockton that
has already gone beyond the power of appreciation
and, without exaggeration, this may also be said
of the guaranteed 100000 capital repre-
scented by 10000 shares nasmuch as the
contract to pay per cent on the capital of
the Toledo and Detroit Company has the precedence.
In the face of all these difficulties with bankruptcy
distinctly marked the final prospective ISSUE the
financial projects of the Board entirely inefficient,
and may be said to be rdicnlously incompetent.
To meet the contract engagements everywhere
pressing, to discharge accrung interests and pay off
the floating debt, provision has been made; while,
to redeem from forfeiture a large amount of stock
and some of their chattel property, the of $780,
900 has been raised by an improvdent issue of
81 900 900 in bonds bearing interest at the rate of
seven per cent. In this we have the sum and SUBJ
stance of the nanciering Of the present board of
evolutionary managers. whose interest in the capital
stock of the company has not been much increased
since they have had opportunity to behind the
curtains.
The annexed list of failures in Great Britain. re-
ported to have taken place during the present inan
cial revulson is from the columns of of our CO.
fan