Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-07-30
Report Of las. Shields. Late Presl0cnl
Of the m. & Z. ". IL. H. Co.

Report Of las. Shields. Late Prestdcnl
Of the M. & Z. ". II. n. Co.
To the Stockholders of the Mn. and Cedar
Valley Rdilroad Company:
GENrLEMEN-I deem it my duty to make
you acquainted with the condition OF your
Company, and the line of policy which the
Board of Directors, in view of this condition.
found it necessary to adopt. Our present
liabilities, as ascertained from the BOOKS
amount in all to $l9l, 10000.
To meet these liabilities, our whole avala-
able assets amount to only one hundred and
twenty-five bonds.
Besides these there are two hundred ana
twenty bonds hypothetical with several
parties in St. Paul and New York, as collat-
eral security for the payment of money here
tofore borrowed and expended by the Com
pany. amounting to $50, 4OS.23. ..
This amount is included in the general
statement of liabilities.
A portion of these hypothecated bonds con-
stitute banking basis, forming the capital
stock of two banks-"The Peoples Bank"
and the Central Bank" These banks are
the property of the company, but as corpo-
rations cannot bank, two members of the
board, for the sake of protection, had been
forced temporarily to give the use of their
names as stockholders to these establish
ments.
The terms upon which these hypotheea-
tons were made, are various, and the rate OF
interest is various ranging from per cent.
to 80 per cent per annum. The time of pay
ment in most cases has already expired, and
in all cases will have expired before the end
of this month-these bonds are therefore liza
BILE to be sold at public auction, for nominal
sum, leaving the bulk of the debt for the pay
ment of which they had been pledged, still
unliquidated. This would be ruiniOus sac
rifice. Taking into consideration our unpaid
liabilities, our constantly accruing expenses,
the accommodating interest on money borrow
ed, and the encountered condition Of our as
sets, and then considering the additional fact
that there was no money in our treasury,
think it would be difficult to imagine CON-
pany in more embarrassing postion-a po-
sition occasioned in great part, | am bound to
say, by circumstances and influences uncon-
nected with its management, and for which
the Board of Directors is in no respect re
sponsible.
In this dilemma we formed the resolution
at once to stop all work upon the road, abol-
ish salaries, and arrest every kind of expen-
diture.
Our next resolution bound the Company
to call for no more bonds from the State for
any purpose, or under any pretext, except
for work already done, until after the meet
ing of the next Legislature. The wisdom of
this policy will recommend itself, | hope, to
the approval of every man who has the
slightest regard for the interest of the State
as well as the credit of the Company.
Having arrested expenditure, we set to
work to make provision for the debts due to
engineers, contractors and holders of accep-
tances, amounting to the sum Of S97, 43s. Is,
bv devoting all our available means to secure
their payment. For this purpose, we put the
whole of our bonds-l25 in nunber-in the
hands of Hon. Ii. H. SHELLEY, as trustee, to
nav them to contractors at contract rates,
and to creditors, if they would consent to re-
ceive them, at the rate of one dollar for nine
ty-five cents.
This trust is to terminate on the first day
of October next, and the bonds then IN the
hands of the trustee are to be disposed OF tt
the best advantage by the company to dis
charge such of these debts as may then re
main unsettled.
1t will be S en- that under the clrcumstan
ces, this was not only the best but the only
provision that could be made for the security
of these creditors.
This being effected, our next object of so
Tcitude was to obtain the assistance of re
sponsible men, who would undertake to re
deem our bonds from hypothecation, and ap
DIV them to the construction OF the road
provide for the remaining liabilities, and pros
ecute the work with due diligence upon tn
line of road already located and definitel
established. Fortunately we have been SUI
cessful in this respect. We are able now
congratulate you and all others interested VI
on having secured this assistance.
BENJAMIN PRINGLE, of Batavia, N. T., an
JOSEPH CHAMBERLAIN, Of Cleveland, OH
and their associates, offered to assume {
these responsibilities, and the offer was gla
ly and promptly accepted.
Four of my associate Directors and m
self withdrew from the Board to give place
men much better fitted in every respect
manage such trust. For my own part,
only accepted the position of President tel
porarily to aid in effecting some such arrans
ment, and the moment it was accomplished
was but too glad to retire. The Board
Directors, as at present constituted, consl
of B. PRINGLE, who IS President, IL. II. 5
LEY, F. STEELE, j. CHAMBERLAIN, A. CAI
WELL, and WM. A. PRENTiss. l hope
and the creditors will be satisfied with t
arrangement 1t is certainly as good as
reasonable man had any right to expect IN
present condition of the Company. 1
character of the men who have undertah
this trust is guarantee for its faithful
efficient management, and most respectful
bespeak for them, what they are clearly eI
tied to, the confidence of the stockholde
the forbearance of the creditors, and the s.
port of the public. JAS. SHIELDS
ST. PAUL, Mimi, July 22d, 1859.