New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-04-07
perplsxiss. Parsdoncs a. ct first glance Il may sp-


whose ma1pay alone is sufficient 10 meet their re-
quiIements for coupon interest," and in almost az Gases
the interest Is largely In excess of the mapay; bat
by the plan proposed an adjustment of this interest,"
an to extent greater by IS per cent than the maa
pay is to be made BY the association either by direct
negotattn with the creditors holding such coupons Or
y purchase Of the very securities, and delivery 70
me companies OF the maturing thereon psiodi-
cspy as they mature, and in amount stated; from
"neh VIII appear that tbs Companies will, TO the
extent of such excess be better able to perform the
seivlce 70 the satisfaction Of the Government than
az Ina. iney WI make the proposed contracts for
years service nee and duly perform them scarcely
aoIps Oh oouot when considered In connection with
other al vast benefits TO enure to them in case of duo
penoi nance, which VIII be hereinafter alluded to.
In regard TO the means to build the road the associa
ton, when duly organized will have In hand or sub
jet to its order, the fol capital of ten millions Of
dollars. 1t will receive fifty millions Of dollars
of Government bonds pa,i passn with its
investments, in the construction of the road. twill
also hold I'm escrow, on terms agreed upon with the
companies or their creditos the higher grades Of se
curities Of such companies, which shall hays been
purchased or arranged for with the fifty millions Of
Government bonds proposed to be made applicable for
the purpose, amounting, probably, at par value, to
over sixty millions of dollars OF such securities IA
the companies will be in much more prosperous
don when il shall become necessary for the associa
tion to draw upon this fund say six or eight
years hence than now II may safely be asserted that
any means then required to complete the road can
easily he realized. The benefits to stock and bond
nOlCere OF the companies are NHr60 duu Ndsss luo
aggregate nominal amount now invested In rah-
Toaos is by reliable statistical returns, over one
thousand millions of dollars, OF which about
ohe.half or five hundred Millions is in bonded debt
Such of the companies as have bsen enabled 70 make
their roads first class by the gradual appreciation OF
The roadways and structures, attanable only BY i'm
provenert thereon for a series of years. have main
tanned their credit Others and by means an insig
nifcsnt portion in numbers merits while struggling
to attain to this standard and position have been over
taken by the financial Ieyulsion which 30 recently
overwhelmed the country, and are not only dis
credited but their roads ard property passing into
the hands Of the bondholders-pracicalY from an
American to an European ownershp-and without an
effort in any quarter to devise means Of relief which
shall be ealutary and efectual.
II s admitted on all aides that the intrinsic value Of
these roa] 10 and properties Ia far above the ncum
braLces held abroad; yet it is patent to all who are
cobversant with the difficulties Of making the combna-
tons OF interests and procuring the money necessary
to protect inferior liens again the superior foreign
ones thst the domestic stock and bondhodng interests
must suecumb to the foreign, and to extent which
will spread disaster and ruin broadcast the
try # these interests much lorger left unsided
claim that this scheme furnishes the requisite relief
both to stock and bOndhoders by temporarily retiring
ian esero such amount of the threatening liens
will allow the full merits of the roads to
lie developed before payment shall be demanded and
enforced.
TIE railroad com panes will doubtless all avail CT the
right to designate parties who may subscribe the cap
tai Ct the association aud in tie abeence Of legal ab
ny 10 Guy Tue responsiveness duu
Of such palies will either obtain it from their
Ieotiys legislature OF adopt such other measures
will secure to their stockholders the full benefits To ste
of; in whch case, assuming that the Pacific road com.
ptted shall be worth its coet-say one hundred mil
licrs of dOs-and that the proceeds of the belts Of
lend will redeem the Government bonds the present
stocBhoding interest in the United States will be en-
hsnced in value by propretorsoip IN the Pacific ROAD
bundled millions of dollars, equal to an addition OF
twenty per cent the par value of the present entire
stock.
Tie States which have loaned their credits to roads
within their borders and which have already been OF
which may he ester be induced TO waive the priority
Of their liens in favor Of lees powerful creditors hive
interests in the proposed Sufficiently obvious
to make anything Il an an allusion to them un-
sshIy.
Ibave already res,assed too much your patience,
and will close this unavoidable. extended letter with
iust alton in figures, which can readily be applied
to any road in the country in ascerainDg the effect Of
| the pioposed method upon such road. ..
Taking as an example, coy the Baltimore and Ohio
Railroad Company, with a present mail-psy assumed
| / ere hundlea Thousand dollars; ard a.suuiag tue
IeseIt mailpay by rail Der convenlence OF hSarel "a
50 1888 533, (psead Of the actual sum, IS 243N4,
is apparent that the ceptal OF the association Is
l00C0000, or three tines the total mail-pay, every
| abroad company will have the right to designate
paIty who can subscribe for amount OF the tea
| millions capi'al equal TO three times the mai-pay
+ stch company, asd who will be the legal oSaer
hereof far the government the association, or
| be public are concerned.
The Baltimore and Ohio Railroad Company desgnates
Alb, ard subscribe. and is led ssooSs
ofthe capital Of the association on paying onefoufth
IN money, snd properly seeming tho remaining
b. az an associate is now interested in the govern
On ebsf 70 be rscsiysd 5; the association and applied
dir.cy TO the construction of the road par pd'su,
The other bs SS to- BE- received b. the ss.oc
tion on delivery BY it to tie Boaid of Commisson
srs Of the contract Of the Baltimore aud Ohio Rail
will be invested in the undoubed securities OF the
Baltimore and Ohio Company, and Will purcnase AZ
the nominal PsT vsus thereof ssy........... lsocss
the association until needed for prosecution of the
The coupons for interest thereon. or $4,000 Fersa
Lrn, to be delivered to the Baltimore and Ohio
Company as they mature.
Thep when the Pscic road is completed A B owns
SO eco of tie sl00 0C0, which is assumed TO
have cost and TO be worth which he will then
render 10 the Baltimore and Ohio Railroad Company,
# legal spree meLts TO that effect exist between tbsm.
With this brief illustration of the practical resu,
Lave tie hoI to be, very respectfully your obeient
servant, EDWARD LEARNED.
To the Editor Of The " Y Tribune r.-..
SIR: have been long waiting for some sae of ow
eadr popular publications to protest against any mo-
ncpoy of public LANDS by railroads iu favor Of rail-
roads, especially the great Pacific Rsroadi ard am
at last glad to ses THE NEw.YoRK TRIBUSE-true TO
portion Of peoples psper-takiDg the initiato'y
in this important matter.
The evil complained of has already gone to ex-
IRENE mpch beyond the public forbearence, and the
public welfare We DO not see tbs; the railroads them-
selves sre at all advaDtseed by the immense land
granite with which they have been gifted but on the
contrary Western paper justly says, there Is dan
ger that at the end of certain fve-year bonds the
rights of stockholders will pass into the hands Of Ea-
ropean capitalists by sequestration; and then, ASK
what becomes of our own cain to large portion OF
the beet unsettled territory Of our OVID natlonf
Keep the Pacific Rsilroad entirely free from ths de-
tesabIe abomnati of land monopoly. Let the lands
fer the people, to have and to hold IN tne,r OWE m