The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-07

Peoria and Oguska Railroad Company, made at the an
nas meeting held at Peoria ~ July last. fhis witt
pam the situation Of tue account between the respective
corporations, and have doubt that the report Will DO
OF service 10 the community intended last winter TO
have asked The Leeiatawre to abolish the word
"Burlington" from the amended charter Of tho
Chicago and Burlington Railroad Company, as
1t interfered with our rights. They own no
franchise to Burlington Dot are tn lawful ion II
your road between GaesbGrg and East Bpr'ugion and
obtained the amened charter without cur knowledge
consent II mast be repealed, AS IL conflicts w.h our
rights and with oar Interests The delay Tor reasons
OF my inability TO go 10 Springfield 10 give the mater my
personal attention Tie lease 81 that portion 81 your road
between GaesSarg ani Burlington VAS made to the chi
cage burlington ara quincy Railroad Company, on The
81 Of October 1854 for three years At all anhQa rent "
$4,000 per year ana ,w3,h!rds Of The prosIs of the
business OF the road AMI above the operating
penses and Keeping HE order Retaining third
IN consideration u thpclglpmen,s 10 be unshed and
permanent rQahbe Arrangement was ~ ade-a eenadrra
ton that they woGd an your corporation m the com
pefing Of tie They furnished some $3.50 600 IN
ron and moGey for hs purpose ana was expected that
nj heexprson Vi Tie lease The whole amount would have
been refaid by rent aud earnings, and that they woul
bave returned sl9 900 Of your second mortgage bonds
LOGGED as additional collateral secary for the advance
But instead Of expected and desirable result they have
with view of holding on 10 the valuable auxiliary to
their road, managed and conrved by every conccvaby
fraudulent way swell the Items Of expense IN the
operating Of The road and they have perverted he
contract to aid them iu their designs that instead VI
the road bringing you revenue under the lease they
make out by such fraudulent to increase the
DEBT some $500 600 and claim to hold premiums al
the time flr reason Of that pretended debt They de-
road lying west Of Peoria by the non CO mpiiance Of
the contract, which enabled them, through the Boston
stockholders TO buy up majority oil all the oustand
ing bonds, and they seeking to foreclose
the mortgage to secure the same, with view
TO secure TO themselves the valuable portion
Of your road between Gaesburg and Burlington, and
break up the great through line from Burlington to Lake
Erie which seriously nte!leres with this road and the
Michigan Central III which the stockholders identified
largely Upon the suit for foreclosure second
gage demanded accounting and am pleased to say
that the Court has appointed most suitable commissioners
to audit the accounts The examination nearly closed
and the report viii be made at the fail term One item VI
this account proves to be for interest douby compounded
and amounting To the enormous sum OF $27S94 90 upon
loan of some $3.50 CO. made some SIX years SINCE This
u interest with a vengeance THIS item bears ipon
and fraud on its face, and am sure the commissioners
will strike the entire amount from the account. The
items OF flood account coupon account lumber building
and exchange account feel confident will be stricken
out from the account as fraudulent and unwsrrantabe
These items, with the interest have above men.
toned, will reduce the account To such figure
That feel confident tho annual and earnings will
square II entirely, and leave handsome surplus due the
corporation The fraudulent item the operating account,
whereby they have managed to make out that the for
tytwo miles Of your road loses SAG 600 fcr snnum 10
operate it, occurs in charges for full repairing equip
mcnt aud the expense Of loading and unloading al
stations and for killed freight by the
careiessness employees and for work doue with
out authority consent and for charg putting
in work which the contract specially stipaiaes shall be
dQpe u their expense. Any At glance from
examination Of the annual statement under yellow
that there must be something rotten III Denmark when
they make out that forty miles Of your road between
Gaiesburg and Burlington loses 500 900 year, when
the 1873 miles Of the road maker suficenCy per
" cover this enormous loss and declare dividend
Of five per cent annually upon 6ve millions OF capital,
besides laying up han1soms sinking fund Since the
order for the accounting instituted by Judge Drum
mond, the managers Of the Chicago, Burlington and
Quincy Railroad Company, fearing they would get their
DESERTS and that they would be compelled
der the lease and return your bonds, lodged col
lateral for the advance, have coluded with your
tractors and lessees OF The west eni-Messrs Moss,
Harding h Co and hope by their assignment to hold
possession Of your property until they secure for
ever by foreclosure and SALE They full pos
session part your road between Peoria and
Burlington and deviang all busDess from your road
TO their own, violation VI all running Arrangements
and contracts and even In violation Of an injunction
issued against them from The Circuit Court OF Peoria
county For such devating OF business that right.
fully belongs TO your road l intend hold
them legally responsible The claim will be very large.
The breaking the great through line from the Mis-
sissppi 10 Lake Erie very serious matter, and have
confidence in obtaining ample satisfaction from legal
tribunal The recent decisions upon the subject OF the
foreclosure Of railroad mortgages the part Of char
tered road whereby the great purposes Of the Legislature
In granting charter for the beneat OF the people be
broken up, il allowed, have been directly opposed to
sale under such mortgages The rights Of the parties
In equity and the court will not decree a sale
Of portion OF highway whereby franchise be
broken up but will the holders Of the
all the rights in the railroad property moteaged by APP
pointing receiver for the whole road If necessary Con
tween Peoria and Burlington by foreclosure and sale
CHARLES l. FROST,
Presdeu, OF the Log,nsport Peoria Burlington Rail,
rond 10 Poor Ann Uon RAJ