The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1871-01-12

The N 7. Bulletin gives o surprising
account Of the financial management Of
the Union Pacific Railway. 1.-THE asser.
tons Of tho Bulletin are true, they fully
explain the recent panic in the securities
of this company, in which It's stock has
fallen TO less than one.fourth, and some OF
Its bonds To one.half, OF their former mar
ket value.
,.GThe Buistip says that the cost Of The
road, as charged by accompany, Is $780,
245,00O; that the subsidy from Congress
was $26 ,916,O 600; the first mortgage bonds
are l7,O00,0O0; SO that these two sourc-
esyielded ID the company IA, 500, 900, Of
ter paving discounts and commissions i,
that q "pOop ort'ringn Of directors took
from the company $l0,000,000 of first
d. mortgage bonds at 49,, and $40 900, 900 OF
Land Grant bonds ut 65, yielding the
company In all 81, 900, 900 that o second
"pooI" took $4,000, 600 ot1ncome bonds,
.5withsth same amount, orr perhaps twice
(Sths amount otstoek, paying .9CO, KY to r
the whole; and that these 1"pools'
threw their securities on the mar
ket, making large profits on them.
In this way the company according 70
the BulletiitS. assertions, gave $SS4, 0O0, 900
or probably $94,000,O00 Of securities Tor
$4,000, 00G, paid out this money for con
structiofi at' notofiotisly high prices"
and disposed Of. all the rest Of It's stock In
some unknown way. The road, It asserts,
was tbuilt with tile most Twastetpl ex-
travagance,n both In the sales OF its secu!
rites ut low prices, and through exor-
bitant charges for construction" 1.-THE
scheme wasl undertaken as o temporary
speculation, and the main anxiety OF tho
directors appears to'hayeabeen TO realize
O on their securities as soon as possible
al The same journal adds that several Of
the directors have become embarrassed
BY borrowing money on their stock for
other sepeculations. Mr.. Cakes Ames,
who holds $4,000, 900 Of stock, has slis-
pended, carrying with him several firms
Implicated In his speculati0ns; and ,Mr.
Durart, who OWLS $500 600 stock, has
suffered serious Inconvenience through
the ptice falling much below the figures
atwhich hc had hypotheCated II while
three otlief directors, holding each 49,
100000. have been SIMILARLY n itti incro 60
Il lhncedIH it1IaalH ufI N, hcffsfc ID tihv
~ Besides oil this, tho directors, itsays,
have mismanaged the road itself, so that
,.Nthey have piled up o, floating debt Of
about Eve millions Of dollars, Ill ofwhich
natures within the next three months;
now, secured by such ScollAthfals" as
$2OOOlOO0 Of Land Grant bonds, s., goo, !.
doc Of Income bonds, $500 900 Of Colora-
10 Central Railroad bonds ind 500, 900
Omaha Bridge bonds, all sof which fall,
at present prices, 10 cover the loans by
about one. third, while the company has
no other securities upon which the loans
&, can be extended. Besides this q has
$4,000, 900 pf Income bonds maturing In
tha next three year" n 4 i1fr 10 nd
Underthese circumstances the Ballttin
thinks II would be uhwise In the govern.
TO press tho company for the iihtercsest
nn'its second mortgage 70, tho United
y States, II being absolutely itipossihle 10
bay III But many readers, OF this state
mert may perhaps infer that, II u Ia true,
thorough Investigation Of its Affairs from
the beginning, with al entire redrg anita.
ltion OF It's management, would do no
q harm 70 the public or 70 lbs creditors, Of
whom the government W ihe most import.
Alt'p titite ail No lis7ielfi- nor W ,flsl7N
tJt .Hlsft IL !. ~ ~ ri. 7IT6 m AZ, ~