The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1873-09-11
The n, G., & l.. N. Railroad.

management of the affairs of the
Mansfield, CoIdwater and Lake Mich
igan Railroad. Only a part of the re-
port has yet been published, and that,
with what follows, is entirely too
long for our colEmns. We take the
following synopsis Of thu report from
the Toledo Commercial:
"We have in the Mansfield LiEerol
of Sept. Sd, one installment mime col
umns, of the report Of Messrs. s. B.
Sturges, H. c. Hedges and =. r. Ship
man, a special committee appointed
by the stockholders of the Mansfield,
COIdwater & Lake Michigan Co., to
investigate the affairs of that CORPORA
ton. They seem to have devoted
much time and labor to the matter,
and all being gentlemen of promin-
ence and high character, their report
is calculated, on that account, as well
as from its character, to command
much attention
The report is too long and the
points treated too numerous to admit
of repetition here; but accepting it as
anything like a just statement, it
must be considered as very extraordi-
nary and damaging to parties con-
cerned. We will refer TO some Of the
points of the paper:
l. It is alleged that the Ohio Divis-
ion of the Road (122 miles estimated
to cost s., 800 per mile, or S475, $50,
was let to Swan, Rose & Co., (the Di.
rectors being interested, at 81, go per
mile-S4, $50 cash and 5000 stock
and afterwards secretly changed to
8, 500, the increase being in the cash
item. This is characterized as q
"fraud.o The contract itself has been
| uspirited aWay.n This contract was
let without opportunity for bidding.
It is stated that the $50 addition to
the contract price was not for the con-
tractors, but for the benefit Of the Di-
rectors themselves. The result of
this management is thus stated by
the committee:
II the Road could have been let las
tCe feel certain it could, at or under
the estimate, without issuing that
stock, it would have saved the Com
pany, at least, six hundred and eighty
| thousand dollars in stock, besides 500
| UCL L1l1C III C1cu vi w e OclACN0
all these Roads could have been built
by fair competition, for less than es-
timated cost, therefore we consider
this large amount, $3.50, 900 of stock
thrown away, and attribute it to the
fact Of Directors being interested in
the contract Of Swan, Rose, & Compa-
ny. To this amount may be properly
added S75, 900 of stock to be issued to
directors in Ohio for services, $75, 900
more therefor to go 10 the Pennsylva-
mia Company, making $4,000 and
$3.50, coo, equal to $3.50, 900 of stock, to
which probably should be added S71,-
200 of stock, voted themselves by the
directors in Michigan, and an amount
to go therefor to the Pennsylvania
Company 81, 200 more, making q to.
tai Of $40, 400 to be added to the $780,
900, increasing the amount of stock to
$972, 400, and 500 per mile cash on the
main line, $S5. $50, which we consider
as almost, If not entirely, without
consideration received by the compa-
ny.
2. The Directors Of the Ohio just be-
fore consolidation with the Michigan
Division, voted to themselves, their
Secretary and Clerk, SO, 900 in stock,
for probably less than ten days' SER
vices" and In addition to that voted
themselves $4,000 in proportion to
the length Of line, making STAG, 900; to
which is to be added a like amount
from the Pennsylvania Company,
showing an aggregate Of $292, 600 stock,
for less than one years service.
8. It is alleged that President Hick-
OK and two other Directors undertook,
by instructions to the Chief Engineer,
so to change the size of embankments
as seriously to benefit the contractors,
at the manifest expense of the work;
and more than intimated that the
number of side-tracks was reduced, to
the like advantage of the contractors.
the Directors included The Engin-
eer refused to make the proposed
change in the earthwork, and was dis
charged.
4. 1t is represented that in the final
transfer of the contract for the Toledo |
q Woodville Road, from Swan, Rose |
& Co., TO the Pennsylvania Company, |
Mr.. Wilcox perpetrated fraud upon |
the Mansfield & Coldwater Company,
in the paper of transfer provided for
the release of $40, 900 cash, instead of
that sum and $21S, 900 Toledo CITY
bonds set apart for the eeonstruction of
the work, as agreed upon in the ar
rangement for transfer.
5. 1t is alleged that the Directors, TO
secure themselves against loss from
existing liabilities, by endorsement
for the Company, set apart all the un- |
collected subscriptions of stock, thus |
undertaking to make of themselves |
preferred creditors of the corporation.
And not only this, but it is suggested
that the records were tampered with
or made to act deceptively in this con-
nection. In some instances, preten-
ded records of action by the Board, fail
to show what Directors were present,
while the records themselves are un-
signed by President or Secretary.
We have given these, simply as
samples Of this report, which promis-
es to make work for somebody. OIL
course, we can't undertake to Judge of
the correctness of the statements and
views presented; but taking this show
ing in connection with facts previous
ly within our knowledge, we are satis- |
fed that the business Of the Mansfield
& Coldwater Co., and of Swan, Rose &
Co., has been pretty loosely managed,
so far as integrity is concerned.
1t Is proper here to state, that this
case in no way affects the rights or in
terests Of Toledo, which are fully
guarded therefrom by the contract
with the Pennsylvania Co., as success
sor Of the several hands through which
the contract for the Toledo & Wood
vile Road has passed. The parties
chiefly concerned in the present de-
velopment are the stockholders of the |
Mansfield q Coldwater Road and its
Directors, who bid fair to have some
thing Of job on hand.