New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-07-19
TIKI GENITAL RAILROAD.

TIKI CENIhAL H AAhhOhD'
A pamphlet has lately been published ia Buffalo
upon the system of railroad management in the
United States, hich deserves the careful attention
of business circles. 1t is, we understand written
BY q re- ident of Buffalo, who has gained consider
able r, putation by various statistical works The
writer begins with the statement that the system
If managing railways in this cOdutry is radically
detectives; and, as an example OF railroad m'sman
agement, he proceeds to thorough and some what
startling review of the reports, official statements
and accounts, of the New-YOrk Central Railroad
Company. The author does not rely upon EVIL
deuce drawn from sources foreign or hostile to the
Central. but confines himself exclusively to the
uate rial to be found in the official reports OF the
officers of the Company. There has long been
general impression that this corporation has not
been maDaged in the most prudent aad scrupulous
manner, but we did not believe that its officers
had spread the evidence of their folly and rapacty
upon the page, of their reports. Aud yet, here is
writer whose argument cannot fail to command
the interested attention of every reader, who re-
lying upon the sworn statements OF the managers
of the Company, accuses them of having compiled
false exhibits to the Government and the stock
holders; of having paid in dividends several NIL
lions mure than has been earned; OF having en-.
gagged in q variety of business enterprises not per-
mhted by the Company's charter, thus incur
Ri the danger OF forfeiture; of having disposed
of The property of the corporation, and not account
ing for the proceeds thereof; aud of having sys-
temstcally conducted its affairs not for tue
advantage of the public or the interests of the
stockholders, but in such way as to serve The
private and political purposes of few of the
Directors We have no desire to enlist 10 a mad
crusade against the Central, nor to excite alarm
upon Change, but charges so grave and apparently
SO well supported demand our attention
1t is impossible or to copy the series of tables
taken from the Official reports of the Company,
which the reviewer presents to support his posi-
Ons. We will merely state, as briefly as possible,
some of the results at which he arrives:
TIE total receipts of the Company from all
sources stated in tn, reports, from May ], 1853, to
September 80, 1859, were S44, S90,9ll 90. The
disbursements for every purpose except the pay
ment of dividends during the same period were
So, SIS, OH 40, leaving profits to be used in the
payment Of dividends ard the creation of shaking
fund the sum of S7,0l5, e94 43. 1t however ap-
pears that during Ibis period the Central has paid
out for dividends 81 ,439,746 49, and has se aside
tor sinking fund 500, 766 SO, showing payment
for dividends and sinking fund, over and above the
earnings of the Road, of the enormous sum of
So, 100,6l9 %. Let it be remembered t. at, if the
statements of this critic be true, the figures which
reveal this strange and startling deficit are not toe
creatures of speculation copjs cture or argument,
but are Obtaited By comparison of the yearly r.
ports to the Govern ment, which the Company is BY
law compelled to make.
The frat question is, how has this large sum
been obtaIneG2 The reports of course give no d.
rect evidence upon this subject, but they contain
indirect evidence, by revealing that the indebted
ness of the Company ha, beeu increased and its
property disposed of W thout oeing accounted for.
In 1853, the funded debt was $ll 463, O63. In
1859 it had increased to Sl4,333,77 2l--aa in.
crease in six years, after making all deduction for
payments on the debts of former companies, as
sumed by the Central of 81, S7o,7O7 80. Pre-
uiluul DOuus w TIC duOuut vi SJUI ,OU nave Dcbil
Cancelled, upon which discount of 1872 per cent
was obtained, amounting to $ll5,337 81. This
discount is nowhere credited in the report but the
bobds ht par value ale deducted from the funded
BIT in the report of 1889. In 1854, the Central
purchased the stock of the Buffalo and State Line
Railroad, and OF The Great Western Railway, to
the amount of ssl7, 900. A remarkab chan &c has
occurred 10 their property, for in 1859 it is re.
duced to 1857 800, the stock having been dis posed
Of to the value of $3.50, 300 and no credit appear
ing in the reports of The Company. There ia
another equally accountable omission relating to
these stocks. At the date OF its last report, the
Central owned 1851 800 Buffalo and State Liue
stock; it had owned an equal amount for macy
ear. That Company has uniformly paid large
dividends, once declaring large stock dividend
Yet there is no credit given in the reports of the