Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1860-01-05
sI.OOs 202 OF

Sl,008, 202 OF
1t will be seen from this statement that there has
been / Increase Of the earnings Of the road over
the preYiOas year, which is SO far satisfactory.
The Directors INDUCED the hope at the com
mencement OF the year that the interest on the
three mortgages Of the road would BE- fully paid
during the course of the year Il will be seen by
the above statement that there is nearly su1i
clent amount due the Company to meet the amount
OF otmorgage interest due. The Directors believe that
much the largest part Of this indebtedness is secure
and will be aYaabie for this pu pose but it has not
ben in the power OF the DirlotJrs to collect it du
ring the past year,
The above statement shows a considerable
am unt Of indeb edness cancelled during the year,
which bad previously acc ued. This has been
done almost entirely without using money or cash
funds, bu 1t has been accomplished by the settls>
meDt of olo accounts, by freghting coal at ncreas
ed rates OF transportation. by sales OF real estate
AMI IN other ways without trenching on the rights
Of creditors,
The first mortgage given on the original line of
the road, from Cleveland to Welsville, for $500, :
900, falls Cue February lst, 1860. The Directors
have given serious consideration to the condition Of
the Company. and the rights Of the bopdhOlders in
reference 10 the large amount SO nearly due.
The Directors are OF opinion that bOndholders
who have purchased for investment can desire no
better security, for this amouDt, than mortgage
on one hundred miles of road, in good order wei
equipped, and doing good business; and although
for two years past the interest has not been pune
tually met, owing to the embarTassments Of the
Company, the ability Of the road to pay eventu lily
the principal and interest of this mortgage debt
has been satisfactorily shown
In considering the course to be pursued, the
Directors have not deemed it advisable to at
tempt m2king any disposition of the $500 600
bonds of the third mortgage issue, reserved for
the purpose of paying the bonds secured by
first mortgage The embarrassed state of the
Company would efectualy prohibit any salts
factary sale Of these securities.
The Directors believe that it is for the inter
est of the holders of the bonds, which fall due
in February nj xt, not to press for payment OF
the principal Ofthose bonds, but to receive their
interest as it becomes payable. and thew hope
hereafter to meetit promptly. By SO doing the
holders will waive no rights, and if the cOmpa-
ny should in short time become, in measure,
free from its embarrsssments, provision coulI
easily be made by sinking fund or otherwise 10
pay these bonds in few years.
New coupons will he prepared, extending IN
semi-annual payments through ten years within
which time it is believed they can be paid =
Should this proposition meet with the favor o.
the bondhoders, the Directors would have IN.
creased encouragement to labor to extricate thC
Company from its existing endorsements.
J. 81. McCULLouGH, President.
The following Board Of Directors were elected
They are the same as last year with the exception
of Mr.. shOenbrger in The place Of Mr.. Gilbert
2. Fitch, Cleveland; James Farmer, do; James F
Clark, do; H. W. Clark, do; D. G. List, Wheel
ing; W. W. Holloway, Bridgeport, B. Drennen
steubenville; H Stowe, Beaver; J. Pennock, Pitts
burgh; J. shOenberger, do; J. N. Mccullough
Wellsville; H. C. Kingsley, New Haven.
Subsequently the old Board of officers were re
elected, J. N. Mccullough being President.
The report shows the road to be in an eueOurag
ing condition.