Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1858-10-29
Imnnrtnnt RniIrond .Ieeting a sansusky.


at the Court House in Sandusky, to take into
consideration the alleged grievances suffered by
the people residing on the Northern Division Of
the Cleveland and Toledo Railroad, from the
hands of the management of that corporation.
Mayor SMITH, presided. Vice Presidents, Judge
Harris, of Amherst; Col E. S. Haines, of Gin
cinnati; John Sloan, of Port Clinton PhiIC
Wells, of Vermillion; and Geo. G. Washburn
of Elyria. On motion, the President appointed
Wm S. Pierson, ElutherOs Cooke, Rice Har,
per, J. H Magruder, John Sloane, J. W.
Sprague, C. L. Burton, and VIM. Bond, to re-
port subject matter for the action of the meet.
ing. The Committee made the following re,
port, which was unanimously adopted
Firsf-The manner in which the Cleveland
& Toledo Railroad is now operated by ma
jOrity of its present Directors Is unwise and un-
just.
Sec0nd-It is prejudieialto the best interests
of stockholders, because it surrenders the prac-
teal use Of all, except eighty miles, Of its own
road, thus abandoning It's own entire and COM
plete connection between Cleveland and Toledo
by the Northern Division, and thereby deprives
the Company Of any connection with the Lake
Shore Road, excepting, through the instrument
tality of lease of twenty-five miles Of the
Cleveland & Columbus Road, which is enjoyed
at cost Of about 100000 per annum. And
because by the terms Of this lease, or by the es-
tablished practice under it, the c. & T. Com
pany are prohibited from participating in the
way business Of that twenty-five miles, being
the most fruitful source Of profit from way tray
el on the whole line.
Thud-lt is also unjust TO stockholders, be-
cause it involves them in the expense of keep
ing in repair the Northern Division from Cleve-
land to Port Clinton, distance Of about sew
enty-three miles, paying station and other way
expenses, whilst the present mode Of operating
that portion Of the road not only produces no
income, but utterly fails TO command the local
and other business. which legitimately belongs
10 the road.
FOurih-It is unjust TO stockholders because,
without authority or night, it absolutely aban-
dons those portions of the road lying west OF
Port Clinton and east Of Berea, and practically
sbandons the entire Northern Division, and in
its stead substitutes the use OF other roads, hired
al an e1orbitant cost TO the Company.
Fifk-It is unjust to stockholders because It
places them in a false and fraudulent attitude
in relation to contracts and agreements which
- me40 AAAE AAAl VI AlAN company ~ NJ aAAA
perform, thereby inducing hostility along the
entire Northen line; and ruinous litigation.
SiIik-lt is unjust to stockholders, because It
fo-gets their true interests aud uses the power
Of the Company 10 promote sectional interests
and crafty sectional prejudice.
Sepenth-It Is unjust and injurious TO bond
holders and creditors, not only because 1t dImin-
ishez tie property and ability Of the Company
to pay, but especially because it cOntsmplates a
total destruction Of the mortgage securities Of
more than half of the owners of the Company's
outstanding bonds, and reduces the claim of
such bOndh0lden 70 the level Of ordinary debt
EighfL-It is unjust toward the citizens liv-
ing along the Northern Division, who have con
tributed not only their lands as a sIe Tor the road
but largely of their money and means to aid the
Company in the construction under not only
implied, but clear, express written promises on
the rari Of tie Company 20 fHiEh and operate
the road
Ninih-It is unjust toward the Port Clinton
Railroad Company because It violates the terms
Of its lease with the C 4 T. Company.
Tezth-It Is unjust to the foTneF stcekhold-
ers in the Junction Railroad Company because
II violates the terms and conditions Of the con-
soli1ation.
EieVeHfb-It is unjust toward the City Of
Sahdusky and owners of water lots therein, be-
cause by the requistion of the Company and
under the orders and resolutions Of the city,
said owners were compelled to make heavy ex-
perditures in constructing solid stone road
bed in the waters Of the Bay, under an agree
ment of the C. Il 7. Company to locate its
road thereon, operate the same, and give to said
owners business connections with said road;
and because it violates the express agIeenlsnt CT
y + e.. L
and workshops in said city.
TiselfE-And finally, It is q fraud upon
stock holders, creditors end the inhabitants
along the Northern Division, and is based upon
pretended reasons set fsrth in the Company's
last report which have no foundation in truth |
Il Is not true that tie Piling on the Northern |
Division Is in either adecayed or dangerous cons
lition, except few rods in the village of Port 4
Clinton, where temporary Pili.g was original /
y ESed, OF that It would require an expendi- /
ure Of more thaE Cas o. Two thousand dollars |
o put the Northern Division IN good running 1
condition. 1t is not true that the income from
he road would be less by running both divi-
ions than it would by running but one But
I is true that ths present mode Of operating
be road produces far less netE psoft then
night be produced by judiciously operating
9th divisions OF the road.
Your Committee, believing that the foregoing
harges and specifications are true, recommend
be adoption Of the following resolutions:
!, RssOlred, That in the opinion Of this
leeting the foregoing charges and sPeeiGes-
ons against the management Of the Cleveland
nd Toledo Railroad Company are substantially
'ue. and that the citizens along the Northern ,
'ivisiOn Of said road are thereby injured and !
ave good cause for complaint
l. Resolred, That the Cleveland and Tcledo
ailroad Company are not only bound by va
Gus express covenants, but by every consider
ion Of justice and right, TO maintain the in
gritty OF both divisions OF said road and each 3
I'd every part thereof, and to operate equally Z
running upon both divisions Of said road
3. Res0lsei, That Il Is the duty Of said compa-
to operate said road as stated in the last resO-
ton; or if it is unwilling to do SO to surrender
Ie lease Of the Port Clinton R r Co, abandon :
e agreement Of consolidation, and restore the
orthern Division to the junction Railroad Co :
gether with due proportion Of rolling stock
4 Rss0l5ed, That this meeting believe 1t 10 be
cir right and duty to hays one or the other
form accomplished, and 10 this end they y
edge themselves each one to the other that :
ey will not desist but will use all fair and {,
Nful means for the accomplishment ofthis re-
IN. They say that the Northern Division L
j its friends are unit, and that they viii
{ submit 1t to an abandonment of any portion T
areof
5. Resolred. That we recommend to the Trus-
S Of the township Of Portland and TO other
ustees of cities and towns along the Northern
e TO furnish all necessary money and means
2 place the same in the hands of committee
reinafter appoint d for the prosecution and
,OveTy Of our rights in the premises, and the :
f11sv ,fs - a
5. Rssolred, That Wm. 5. Pierson. L. S. y
Ibbard, Rice Harper, Of Sandusky, J. Il Ma :
lder, John Jenney, of Port Clinton, J. W
rague Of Huron, c. L. Burton of Vermillion, -
B. Gates Of Elyris, and C. l. Russell of
.veland, be and they are hereby appointed
mmittee TO act in behalf Of the citizens aud
ckIlnllars aInnr the Markham Dirisinn T.