The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1859-07-28

Company, and the line Of policy which the
Board Of Directors ia view OF this condi
ton, found il necessary to adopt.
Our present liabilities as ascertaned from
the books, amount in oil to sl9l 1900.
10 meet these liabilities our whole availa.
bic assets amount to only l25 bonds.
Besides these there are ZIG bonds hypoth-
coated with several parties 10 ST. Paul and
New York, as collateral security for the
payment Of money heretofore borrowed and
expended by the Company amounting to
Sj3 1925.
This amount is included in the general
statement Of liabilities.
A portion Of these hypothecated bonds
constitute banking basis, forming the cap.
ital stock Of two banks" The Peoples
Bank" and the Central Bank" These banks
are the property Of the company, but a.
corporations 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 cstab.
llshments.
The terms upon which these hypotheca.
lions were made, are various, and the rate
OF interest Is various, ranging from per
cent. to 50 per cent. per annum. The time
OF payment in most cases has already cx-
pred, and il all cases will have expired be-
fore the end of this month these bonds are
therefore liable to be sold at public auction
for nominal sum, leaving the bulk Of the
debt ior thepaymen, of which they had been
pledged, still unliquidated. This would be
a ruinou. sacrifice to the company. Taking
INTO consideration oar unpaid liabilities, our
constantly accrupg expenses, the accumu-
lating interest on money borrowed, and the
oncumbered condition Of our assets, and thcn,
considering the additional fact that there
was no money in our treasury, | think it
would he difficult TO imagine company in
"A more embarrassing position-a position
occa.ioaed in great part, | am bound to say
by circumstances and influences unconnected
with is management, and for which the
Board OF director. is in no respect T, spon.
sibe.
10 this dilemma We formed the resolution
at once 20 stop aI work upon the road
abolish salaries, and arrest every kind Of
expenditure,
Our next resolution bound the Company
10 call for 10 more bonds from the State for
any purpose, or under any pretcxt, excep,
for work already done. until after the meet.
ing Of the next Legislature. The wis,l ON
Of this policy will recommend itself, hope
to the approval of every man who has the
slightes, regarl for the interest OF the State
as well as the credit Of the Company.
Having arrested expenditure, We set to
work to make provision Tor the debts due
10 engineers. c contractors and holders
OF acceptanccs, amounting TO the sum Of
S9IiiS. Is, by deyoting all our available
means TO secure their payment. For this
purpose, we put the whole of our bonds
l25 in number in the hands of Hon. II,
ii. SIelgy, as u trustee. to pay them to con-
tractors at contract rates, AMI to creditors.
If they would consent to receive them, at
the rate Of one dollar for ninety iiye cents.
This trust is to terminate on the first day
OF October next. and the bonds then in the
hands ot the trustee arr to be disposed OF 10
the best advantage by the company to dis
charge such of these debts as may then re.
main unsettled
II will be seen that under the circum.
stances this was not only the best. but the
only provision that could be made for the
security Of these creditors.
This being elected our next object of
sollcitude was, 10 obtain the assistance of
responsible men, who would undertake TO
redeem our bonds from hypoiheca,iou, aud
apply them 10 the construction OF the road
provide for the remaining liabilities, and
prosecute the work with due diligence upon
the line OF road already located and detiui.
lively established Fortunately we have
been successful in this respect We are
able now to congratulate You and ali Others
Interested. upon having secured this assist.
ance.
Bs>itutS rRI>GLs Of Batavia. \. Y.
and Jo>tWu Cu,NBERLAlS, of Cleveland.
Ohio, ard their associates offered 10 assume
all thosc responsibilities. and the offer was
gladly and promptly accepted
-Four 81 my associate Directors and nv
self withdrew from the Board 10 gice place
20 men much better fitted IN every respect
TO manage such n trust. For my own part,
| oaly accepted the position Of Prcsiicn,
temporarily 10 all in Ctlectinc some snch
arrangement, and the uomeu'i il was accom-.
pllshcl | was but too glad TO rctire. The
Board OF DIRECTORS. as a, present cnusti,u.
tell. consists Of II rRlSGls, who is President.
N. II StHtEN, T. SrsylE. j Cn,vRsRt,,x