Holmes County Republican. [volume] (Millersburg, Holmes Co., O. [Ohio]) 1870-1895, 1873-04-17
PROPOSED NEW RAllRoAp Law.

PROPOSED NEW RAIlRoAD LAW.
A bill was introduced into the
State Senate on Wednesday, design
ed to regulate the control and leas-
ing of railroads. The bill provides
that awhen two or more persons
shall conspire with or assist any
railroad company to change the
members of the boards of directors,
lin whole or in part, of any company
| in order to contract or obtain a lease
of or the management of the latter,
and q change in furtherance OF such
object is effected by vote of less
than two-thirds of the capital stock
In favor of such change, such election
| of officers shall be deemed fraudu-
lent That if q change of directors
has been heretofore effected in the
manner described, no lease,purchase
or other company seeking the same
be valid unless assented to by at
least two-thirds of the corporate
stock of the company leasing"
The meaning and intent Of this
bill is to prevent the managers of
one road from selling out to the
managers of another, thereby trans
ferring the control of the first road
to the parties holding the second, as
was lately done In the sale of the
Cleveland, Columbus and Indiana
polls road to the Atlantic and Great
Western and Erie Company. The
bill is aimed to meet such cases and
to prevent such transfers; and the
second proviso above quoted reacts
directly upon the case in question,
and is intended to prevent the con-
summation of that transfer by per-
petual lease of the &C. C. &I. to the
A. G. w. which the managers pro-
pose.
There is unquest,onsbly an equi-
table occasion for the State to inter
fere between railroad boards and the
private stockholders, to protect the
rights of the latter. In the case re
ferred to, the managers of the C. C.
G. & I, and such stockholders as
they chose to take into the "ring,"
made handsome speculation out of
what the bill characterizes as the
conspiracy with the A. d G. w. It
is understood that the former recei-
we'd 95 cents on a dollar for their
stock, when the market price was S8
to SO. But as soon as the majority
of the stock had been secured by the
Atlantic and Great Western, and it
became known that the latter com
ipany had obtained control of the
cleveland, Columbus, Cincinnati and
indianapolis. the latter began to fail
and was quoted yesterday at S3-a
decline of IL cents on the dollar
from the figure realized by the man
ayers in selling out for the purpose
of effecting the very transfer which
has SO seriously damaged the COM
mon stock of the company,and con-
sequently the shareholders who were
not in the ring and had no such
chance to unload at special and high
figures.
The Atlantic q Great Western
company having thus obtained con-
troll of the Cleveland, Columbus,
Cincinnati & Indianapolis, propose
to lease the latter road for term Of
years on their own terms and with
out regard to the rights or interests
of the original stockholders. They
propose to pay only seven per cent
on their lease, while the Cleveland,
Columbus. Cincinnati 4 Indianapo-
lis earned eight and a half for the
last three years and is now earning
ten per cent. The balance, of course
goes to the Atlantic & Great West
ern lessees, whereas it ought to go
to the Cleveland, Columbus, ,Cincin
natl d Indianapolis stockholders,
since it is earned by their property.
The managers of the Atlantic &
Great Western further more propose
to issue FIVE millions of new stock
of the Cleveland, Columbus, Gin
cinnati q Indianapolis, which the
stockholders of the latter company
claim is "wholly uncalled for and is
intended solely for fraudulent and
corrupt purposes; and the Atlantic
& Great Western company, with its
nine hundred and nine millions of
bonds is hopelessly lnsolvent." The
stockholders of the c. C. G. Il l. ac-
cordingly intend resisting the pro-
posed increase of stock and lease of
road to the A. & G. W. by a resort
to courts, as well as by procuring, if
possible, the passage of the law
above referred to. The whole mat
ter is important, not only in respect
to this one case, but as bearing on
the right of stockholders and the
powers Of railroad directors and
managers, and the propriety oftheir
selling out to other companies
Clerelnad Leader. .4f aar |
en - CHEAP FUEL.
The increasing cost and diminish
ing supply of coal in Great Britain
constitute the principal economic