New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-09

at that very time was invested IN the
bonds and stock Of the Corporation, which held In
dton TO th the directors pledged large amount Of the
SGndS tSr instead of selling them ~ the usual
sold at reduced prices TO pay the advances aud the
been sold in the market at the time Of their issue This
loss however, does not affect the State directly the
thrown into the floating debt The funds invested the
stock were taken directly from the Treasury OF the Cor
structng the road and any considerable loss rom the
deprived the Corporation Of tho power
In L, r one item alone. is over h,5oO,oOo Mr.
Pm the engineer appointed to examine n.
will require about $4,000 to compete the grad
ing and furnish and lay the IRON to Fishkl;
to the nnal completion Of the road solfpreser-
y snnCIs not prudence would seem to have Seen
thus Periling enterprise so vital to them.
nses Of nS m, a an nS
them to the purposes for which they were intended they
higher price than that obtained when it was originally
issued The authority to do this by the act of ncorpora
prise they certainly had for thus employing
the money placed in their hands In issuing scrip i
uniformly refused their assent until perfectly
satisfied that al the conditions Of the act h, d Msse
tors of the road from the and engineers and
all parties having knowledge OF the situation Of the cor
inadequate TO the full equipment OF the road
still there wond be no nterrupt9n Of the WORK OF con-
at the latest by the LIST Of September next to Fishk
The directors acknowledge that the corporation is
bonds hand that the stock is issued to the last dollar
and there Is the treasury. Under these cir
cumstances feel bound to continue to withhold my
sent for any further issue OF the bonds OF the state until
the whole matter has been passed by the legislature
and the Council have fully cOncurred with me in tins de-
cson There are many irregularities disclosed IN the
investigate which show q culpabe disregard OF the
usages and Ipropreties OF well managed corporations
One matter deeply concerning the bondholders ana, OF
course the state which now holds 100000 OF the ponus
security for the aid furnished the Corporation should
be promptly considered by tho Legislature BY tho terms
OF the mortgage there three trustees who In case OF
failure the part OF the Corporation To fu us agree
ments are 10 manage the property Tor inc
the time John Eldredge,
Henry ~ Farwc and Mark Heay-all active andlhhuen-
tia members OF the Board OF Directors One OF them Ia
directly responsible for the specuatons In the stocks
which have been disastrous TO the corporation 'and
the others knowing to and consentng TO many OF
the transactions. 1t is certainly great Improperly TOT
either OF these gentlemen while they are directors, to
hold the position of trustee under any circumstance
and certainly in the present condition OF The corporation
"a change is imperatyey demanded The trustees
should have direct interest IN the management
OF the corporation. They should have no special
duty except to guard the interest OF tho DondhOld
ers and still less should they have any interests
which may be anagOnistc TO those OF the bondholders
In placing the matter before you for your consdera
ton and action cannot fail TO express my cOnVct0n
OF the importance OF the enterprise to the future wel
being of the state opening as 1t does another great
the West for the business OF Boston and te
eastern section OF the Commonwealth; but no corpora
ton be successful in the hands OF lpars so reckless
OF the trusts committed TO then ana VINO ueParu 80
widely from the common principles OF prudence
economy and fahuness which are necessary 10 secure
the confidence of the public. .,
Tie investigation OF the Council was properly connned
10 the question whether any more scrip should he issued
under the Of last year. broader inquiry respect
fulIv suggest s incumbent on Legislature In cOnsld
BILE Of finishing and equipphg the ROAD Tor g,tat
commercial line capable OF compethg Win nS i aiS
he with that reasonable security To WHICH INC
State is entitled