The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-01-20

suit has been that the road of 100 miles, over vast
prairie, has been forced up to amount in floating
debt bonds and stock to the enormous sum of eight
millions, independent of debt, the payment of
which takes precedence Of all charges except
those of the bondhoders, whose mortgaged interest
is about 81 400 OOO In the West this cost of road
which scarcely required any other grading than an
occasional filing in from side ditching, is esteemed
most monstrous shave, and if not fraudulent,
a gross imposition, such as ought not to have
been anticipated from the peculiar character
of the parties to the contract The cir
cumstances are full of the indications of
wrong, and have ended in comforting great wealth
on the parties making the road and in furnishing
the rolling chattels, while the company have no
other prospect than the anticipation of seeing their
entire property 60 into the hands of their bond cred
tors. On an examination of the railroad map it will
be easily discovered that roads have been recently
constructed placing the Chicago and Rock Island in
most unfavorable competition. The newly formed
lnefrom Rock Island to Dixon, on the Chicago and Ca
lena roads shortens the distance between Rock Island
and Chicago from 20 to % miles; consequently, with
this preference there can be fair competition, the
more especially as the Galena road was not made in
haste, to suit the convenience of the contractors
who pressed forward the Chicago and Rock Island
were entitled to the net earnings until they were
ready to surrender the work to the company, which
they wisely did in the spring, when it was found
that the work of construction had to be done over
leaving no margin for net profits The contrac
tors were wide awake az to the speculative
foibles they had engendered and with skilful adrot
ness they were enabled to job to the Chicago and
Rock Island road private enterprise they had
been completing, uniting Rock Island with
the town of Peoria, situated on the navigable
Illinois, for the of which the original proprie-
tors have a guarantee whereby they are to
receive permanently net eight per cent, in
semiannual rents, on a fixed capital of 81 500 900,
the burthen of preserving the road being at
the cost and risk of the lessees. Now, with regard
to the value of this arrangement there two sub
stantia objections. In the first place have the
fact OF excessive valua ion; and in the second that
in the late construction of connection uniting
Peoria to the Illinois Central the road to Rock
Island has no value-the link joining Peoria to the
Central is the exclusive property of the citizens of
Peoria. Without again going over the unworthy
and disreputable mode of making dividends in stock
and out Of the proceeds of the sales of stock, we
have only to state that the receipts of The road are
almost at the lowest possible ebb leaving no pros
pect, in consequence of the several competing
lines, of flood tide. The Chicago Republican of the
9TH January inst, remarks:-" Lest some of our
readers should imagine, from the receipts Of produce
&c, published i'll our annual review that the Chicago
and Rock Island have done comparative
ly small business during 1857, we take
this opportunity to state that a large portion
Of the traffic Of this road finds other outlets" The
traffic which came from Alton and passed from Jo
let over the Chicago and Rock Island road distance
Ofsxty miles, now wends its way to Chicago aud the
east on the recently constructed Joliet continuance
of the Alton road. 1t is rumored that Mr. Flagg is
engaged in preparing rehash of his circular, finding
that his bungling withdrawing attempts of his as
socaes has not proved to their satisfaction as in his
attempts TO clear his own skirts he has been COM
PEELED to tell many disagreeabe and unwholsome
truths. The competition between the Gaiena and
Rock Island roads will, like that which existed be-
tween the Michigan Southern and the Michigan
Central, end in ruin to both.
At the adjourned meeting Of the stockholders TO
the number Of thirty Of the New York Central Rail
road" in Boston, ON Monday, the committee ap-
pointed at the last meeting presented plan for
creating per cent preferred stock TO the amount OF
$500 600, 10 complete the road Southbridge and
pay of land claims and Norfolk county road bonds
and to issue enough per cent preferred stock TO
pay of mortgages and other liabilities; but Mr..
Richardson who owns the property OF the terminus
at the foot of Summer street could not perceive the
beauties Of the plan, and although Messrs. Ammi-
down. Pickering, Crane and Willis advocated it. it
was recommitted, and the meeting adjourned to
Wednesday, after making an addition tn the COM
mittee, which now consists of ID. w. Pickering w.
Hunt, Z. N. Haines, II. " Bigel and S. W. Bates