, 1866-10-23
CHICAGO AND NORTHWESTERN
RAILWAY.


nb1c Trnnsnctspn-C0nsoifdnt With the
Pcnfnau1nr Railway. DC.
Especial Despatch to the Chicago Tdbnnc.]
BuTFA.o, October p.
4 work Of zone eighty pages has come under
our notice, which exposes the management of
railroad ''drgs" 10 an extent which must attract
great public interest and lead to important re-
sulte. For the purpose OF showing the working
Of railroad rings and to give the people to under
stand by whom and In What way they arc de-
frauded, we extract from the above work chap
ter, which muet open their eye. and challenge
their aston1shme1t. Without doubt, the most
perfect ring management In tho United
States. II not IN the world, is that
Of the great Chicago & Northwestern
Wisconsin Michigan aid iowa and e eont1ois, % i1
found plumbers, i,tW rules Of faf'~ay operated
an acknowledged capital, on the LIST OF June, 1855
Of $io,U GOO. 1t has an oslcnsblc board OF sew
cileeH dlsecso.ss but son1e OF them are suppressed
70 ls merely ornamental, and 10 represent mem
names i1 the back gEound, a. this Ia very easily
arranged aca may be mad jnst As effective,
Grand E & 5ss osaea e1Sf President
Grand Legalizer-s. ]. Ti1den, Teussee..
Grand Malipulator~-ln doubt
Special l:ndorHeT-ln doubt.
Special High Character. perhaps not in PROFITS
Of she rlng-Wm. A. Booth, President Of tn"
srfsal iseis1a.tve Promo:er-re7y Il. Smith,
Sometime Official E5platucr A.
II. Doody, TranEfcr Agent
Routine Manasct-G. L. Dunlap, S7perintend-
local Attorney Francis S. Howe, Counsel.
Favo'able Report ArraugcE-Jas. r. Young,
Secretary.
The ring was NOT organized until after the fall
@ E.e Of 'hs preceding ,eompansccthc Chicago, @ St.
which was sired by tho iock Rises Valley Ratl:.
rnal Company. whsch failed about 1851 Before
:he failure q 1857; the Company hadlts Temporary
pledge at is nonas At about aa5y a35
Of ns a9a beo Of es s.
made, the President, then as now, Vim. b. 6sden.
was az endorees for nearly million aud q halt.
above, about three millions, but which werv not
then available for want OF confidence in their
sglnc. Int questions being raised about the le-
Iapcs wss discounted, it Is generally understood
hat many ot tic claims were pa,d III the bonds nj
par, md stocks, &C.; uhtil in the end, Nj; Ogden
In, ard Il IL supposed that the subsequent rise In
| the SECURITIES left him hat.dsoMc profit. Mean
time the road was rcorga.szed In 1>5a, md stood
weakly up0n It's lf;e| 0ace nadfe-the 50nd!ofd-
css advancing $G0o tU to put it iu running order.
in tsGg It was finished from Chicago 10 osh;
k9;h, y: miles, and in ls6. to Appleton, 20
IS. Of sS,:;io Per mile, during 1858.
| The road was extended 10 Grren Bay, a defiance
niie including tlir.S per ccut discoiit allowed On
lands: This made the tota] construction cosl,
according s asl@ @ to Tue scror; Of 1872: tel l up
| U1iie. including e1u'p!aeat.
Meanwhile thr coupon. on the first mortgage
bort:H Q! nearly Si,Gs. .0va were funded for three
he paid on Then, until 1851, and payment OF it,
| fcre%t wns suspended on lhc secoal mortgage
bonds Tor an INDEFINITE tine, beIu. finally PAID b
not bare 10 pay annual interest on bonds between
ISL and 1851, except foE less than Sa0N, ,000, OF
St @o PEI 1nte o.. itae'ion a.n Of H. actual
which II made With the Galena, which undoabted.
y saved 1t from bankruptcy. judging from tho
it, 1851, Its .nes earnings were S.5as+l 81. The
e 4n ths sanf as II 9s ind
s.!n!ta,gs !i,G II, Il s?ne5s;;l, Viii Interest
ps5,on pa o eoupoas ass efss fsneS % t Tue
Sses St t9, ~, showing a deficiency that year oi
ably rot mnsh better. aud eonssqacniIy M : It Is :
demonstrated fact, That with the resumption Of
The annnnl Interest in 1865 Ill, for the con.o1iaa
western es M and pcainsnisr Raftroad would b.
e a ,so1eelosnte re *s!n;S during this 1ais
l
warm. They had m arrangement by which the
| rar wheels were made IN i shop III which they
were interested, which paid a. high as. forty.0vc
| was furnished By the Presidents Faw mill. The
scc company ,sas formed, and ths coapany's cars
tIapsnoFtet The Ice, and the o!lser7 diyidea the
Then elevators were started, on which were 4
a sute source of profit la:ec one, be:
6ay ns nsn Steamer Il pes s were 5ia;te.
theMfs.t>eppi to run to St.pluI aud also unt;recu
Bay, for The Lake Superior tnasel, in. which
S S f1 s: s aensss a. ss
whether tic main line trayel did or not. Then
placed on tracts Of Land purchased l,y the rin;
Also tlc buying MP Of tho stock Of unrorli.
nate creditors who had brcn Obliged TO taxi,
or whtc! 1nnch was e~rd along the lIne, saet
fsse. m" @ 1cn S? 10 ~ vi! ri an ID scil M I as Gs u i:
The money could not help com,nG in uuae
enough to zuit the .,ring," for they saw the ia,
snfne tho payment Of the Interest on its bonds
and chow an annual deficiency:
0KTT1So POSSESSION OF TIE 6ALESA.
Eatls In 1851 the plan was conceived OF gaining
possession Of the Gnlena road, considered tht
hest earning road running ont Of Chicago. i
ad sTtenso too mnsh into btanshe' Int stl r.
years. II Was held In high estimation East
+ suas zsa Ssudh ana ME- eeuf31 c3 fo
lenEtsen locomotives to the CSicago /
hundred carr to the Chlcago s. Northwcs,ern'
one thousand and fos,y-six; owed but abou
o,toe; and had on1y e. .Eo,;oa issaea IN stock
lees than ss4n to the mile The *'rins" laid tEa]
.ns s Es y,se1 II se ssos eas Il p 4ef
and bought MP the
which Was 2cvcrt y-th1ec niIea long aad had ncye
mid its running expenses, much isss aMy int;;cs
bought cheap, and i. was done bs bayins up III
On On ,sc , dollas. s. til. DOM done. ;he rosa Va:
;hie:so ~ ~ =; S;o!.swss'eln: il ezss;n9:: ;
a. about Sds per share. Thts would maize tue n
cab .ea!wse ssietGn: ii nns T. It + supposed s 70 y
Ms .Ti'den was the neso:sasor for hosa s!aes, an'
the ''rsns" !,atifed 1is aEraescments. The tots
owr S on 'nE NJ . 1oa.G ne
| official rcnafs, was {1l'>HH. ar $l+.ie9 per mile
DcdnclinE taxes and repairs. the sunainr a1
sead and .e
ring" dividend war $.oo GO in cash. 1h!sp!ccon
| piece Of property was invcrloricd within ri
o q @ snS '@s sssn 81 "a osst
| ,intcs its cash cost.
Other tallaeics might be pointed out, such q
| i Northwestern road Wad Enoxtsase1 10 the q
tent Of Ss;.500 per mile, and the Ga!ena OH!
abent tls42 res mile: aud yet the +, two s,s soaa
encc In Cannon stock At var. Snch an Easy secu
Inc Of valuable property for Diluted ssock in .
or any oihe1 country. Ont Of the money found I
the Galcna treasury, le old Stockholders WI.
ps'd 1h,ee dollar rer share, ,Ehecer:r they &c,
| *Eppostnc II to be all right, they did preti
generally, and u1cozscioussy reduced the value
their certificates at least thisty.thrcc per cen
| ]E}irs WAntworih md some o;hcrt refused to Q:
change and carried the matter into tho conrtE. IT
Judge. without deciding whether the eonsoiid
sf eeS tsa sas 1Snas sss
thc ,sine Of ths,r original stock 1t he ills
. | consolidation. AZ he could not be compelled
.hdr gained his case 40 far d to be inae.n1.ic i
. ths eonsolia a.'te1 ma.s haye beea broken ap; >,
then easssd, Is de ring" tooE their ,arn mel
which was in the Consolidation With Il
TExiSeIIAK RAILWAY
; of Michigan: The history Of this sWtua1e IL Fe
interesting. bnt We hare only time md space
ras ass st!Gstsq
, Michigan. They bought up Or leased a larce tn
nj land near The celebrated iron miats Of NJ
npah wReh r ,hs1 &c 1oa t
E Company. Nr. Tilden then leased another mi
! and the read was pure" AGED through to that a
ooeks built al eoet OF ssao,oco to ship orc ire
{ Tbr pTn6t. Of thc ring" arc rcn-cscn,cd as 4
9n eopsGliaa,ieG a. ot kn9chs g. $o
) Eteanaba. sso.01: sieambo.t stock for CONT:
sasnp1e eco; ss fss fESs5s.i saa as hs.fsy s.
Il Two dividends on preferred stock, on console
ion, s'9.lto; SALARIES &e. q ftrustees and ..in