The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-08-06
The EaTs E4,isrSd sn aH,e Band. " a
Receiver,

TIE Ere railroad gees Into the hands Of re-
ceiVer as SOON "a oae can be found. II is said
.tht this proceeding &" is a friendly cne and de-
sigr ed 10 protec. all Interests, inciuaipg stock
boldsrs aud unsecured bondho'ders against nos
r.r CIT ditGrs"
Tnis is pretty way of pbrssing it, but it is
only sn easy letting down Of " the stockholders
81 I'd unsecured botitolders," to a tate as GER
tain as that which attended The unhappy travel
lels OYER The bridge of Scbaghtcoke, bat not
quite go shocking. And then those hostile
crtcitors." No doubt they wanted their money,
and hence their hostility. The rascals. Take
the law Of them, ard cheat them cut Of it. What
business have they to want their money back?
Protect the poor unsecured bondholders and
stockholders, and if there is anything left after
the expenses are paid we hope they may get it.
The fate that has oyertaken the Erie Railroad is
already approaching fer many Of a large class of
roads Of which the Erie is representative They
are just as rotten as the bridge at Schaghticoke,
ard will let their stockholders and bondholders
down in just the same way.
We have said that the Erie Railroad il a re.
preventative Of certain class Of railroad enter
prises III this country. In building railroads
among us three different systems bave been pur
sued. At first it was supposed that for such q
work it was necessary to raise large capital
by actual stock subscriptions the instalments on
which, collected in cash, went to pay for the
| wolk as it progressed A few roads were built
on ,hs plan, but it was found to be slew. Capt.
tai for such investment was not abundant, and,
besides il was found to partake of the ridiculous
old method Of not getting thing till you were
able to pay for it. Then some of our great fnan
ciers invented another plan OF building railroads
by borrowing the money. Here wondrous skill
III the art Of borrowing has been displayed. AL
binds of subterfuges, representations, schemes,
eames and lodges have been resorted to. The
Erie is their perfect representative. 1t cost
thirty nine millions of dollars to build it, aud it
is worth fourteen millions o-day in the market.
perhaps. The borrowing system was soon
played out, for capitalists saw through it.
then came the grand public land grant sJs-
ten, of which the Illinois Central is the
representative. That road owns half Of
the State of Illinois, makes and
breaks its Governors Senator's and Representa-
tives, ard has its finger or its foot in the nomna
lion tor the Presidency of the whole Union.
With the fate of the Erie we may safely as
sumo that the destiny of the companies that built
through the borrowing system, based on bonds
and mortgages, is fulfilled. Their time has
come. They must follow ia the footsteps Of
their leader and representative, and give up the
ghost, handing over their effects to their mort
gagees. What manner and class of persons these
are may be best illustrated by the relation of a
fact During the height of the panic in 1857 q
prominent railroad came into the market for q
loan Of several millions of dollars 1t was pub
lic]y announced that the company must have
the money, and bids at any rate would be &C.
cepted. The time was not propitious for Dor
rowing, when, to use cant phrase from Wall
street, money was worth one per cent minute
and supposing only sixty per cent was bid by
parties who knew what they were about, the en-
tire property of the company was mortgaged fol
the debt. By such operations as these direc
tors, presidents and cashiers have been able to
grow wondrously rich, and to live in fine brown
stone houses on the Fifth avenue, spending at a
rate double their income
We know this state of things cannot be agreea.
BILE to the stockholders who have put their
money into the road, it, indeed there are any
ruch. We incline to believe that many of the
roads now figuring as great companies have only
enough steckholdipg timber to make presi
dent and board of directors Of and that the
rest of the fabric is built of just such rotten
stuff as the bridge at Schaghticoke. Roadways
built on paper piers, and suspension bridges
held up by financial kite strings, can be found
all around US. But if there are any such things
as real stockholders, they have, in losing their
morey, one consolation. The roads have been
built the value of the adjacent lands has largely
increased, trade and travel have augmented and
the roads, such as they are, are in existence for
the benefit of the country at large. They can
think Of these things and though left with
empty pockets, their patriotism may be appealed
to and relied upon by the keen shavers who
have shorn them, to keep them in good humor.
We have many more roads the desperate condi.
ton Of whose affairs will soon require legal
action to protect them from ''hostile creditors
The JoURNEYMEN BAKERS AND SUNDAY Work
We perceive, by call of the journeymen bakers
Of this city, that, notwithst aiding the early
hours that class is accustomed to keep, they want
to be aroused" They have issued call for a
meeting, with view to induce their employers
to abandon Sunday labor, and allow them one
days recreation in the week. We incline to the
opinion that grievances of this kind work out
their own relief better than either public demon
There are some kinds of business the newspaper
business as well as others-which require seven
days labor, and many which can be accomplish
ed with six, some kinds Of labor requiring only
six or eight hours day, and some demanding
twelve. 1t would seem that the parties who IN
dertake to furnish large community with such