New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-08-11
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On the first note payment had been made at the time
OF the transfer from the former owners OF your line OF
1899 00 leaving outstanding Oh the purchase siCO one
OF the steamers had been before that tune sold Or $1,000
that the value Of the remainder transferred To the
present SS6,OOO The new Board OF Directors
attempted TO raise lands meet the balance OF pur
chase money but were unable 10 do 50, principally from
question raised as to the power OF railroad corpora
tion to make such purchase IL was therefore ue-
termDed to dispose OF these steamers at the cost price
and they transferred 10 Milton s. Latham In trust
for the Central Pacific Railroad Company, the latter
corporation furnishing the money after retiring the
the pay OF other indebtedness Of your Company.
Tle san Francisco and North Pacific Railroad was pur
chased by predecessors for the sum or Sl50OO ON
which they made payment nOmlndly OF S25OOO out ~
s2000J OF this amount was borrowed from the London
aud san Francisco Bank (Iimitedl, and the
Compauys note given therefor, when was out
standing the time che ROAD passed 10 The present man
agemeni-yoWiCOm at that time really indebted
for this purchase IN the sum OF 100000 Th Indebted
ness was mt by The sale OF the road the excess being
Obligations.
SIXTEEN HUNDRED THOUSAND DOLLARS SECOND
MORTGAGE BONDS ISSUED
On Aug. 9. 1871, at "a meeting of directors, motion
OF Director Latham 1t was resolved that the sum Of
s6OOOO is necessary for purpose of building addi
toua track ana to secure the present track against
floods. etc.. and the President was authorized 10 carry
the resolution into effect. contract was entered into
between Messrs. Stanford, Huntington, and Hopkins,
and the Company, by which the former undertook to
construct additional track along portion OF the line.
and TO make certain repair, IN consideration OF
S,GO0 QUO second mortgage bonds OF the Company.
Shortly after this contract had been entered into,
large portion the line between Davve and Sacra-
mento was washed away. necessitating change of
Grade and the Rounding of dong sections with restle
at the il became evident that the safety OF
other portions OF the work required large and immo-
date expenditures to insure keeping any part of the
road open Your Directors therefore, made
an arrangement with Mesrs Stanford Huntington, and
Hopkins to do all the work required to open the
business, aud u make ITS future operation safe
ana Trustworthy and have accepted the work SO done
in lien of the performance OF their first contract The
bonds issued subsequently guaranteed by the
Central Pacific Railroad Company, and the interest
thereon has been pad to June 80 of the present
QS7O At recent meeting OF your Board OF Directors,
j. Is. Haggn presented demand against the Company
amounting the sum Of S390il g. claiming " be
tilted To the same in manner following, VIZ:
As suee Of Central Pacific $555395 81
As Of Leland STAFFORD, Marx Hopkins, and C. -
As II the Contlac. and Finance 8IS Is
....................sI O4l 81
and rcGuested that your Company would execute and
deliver TO him promissOry note for the amount your
Directors. after examining the cIan Oh MI Haggn and
the note asked for Mr.. Haggln has since brought
suit his note and has taken judgment against your
Company for the amount thereof
short resume OF the results OF the business OF your
road SINCE the change OF ownership ana mana cement
will afford explanation OF the deficiency In your Com
pany's resources represented III part by the HaEsin
Paid to and Francisco Bank ime ,ooo ~
Par Two notes $225 900 each given purchase
1000 90
North PsGsc 5OOO 900 %
maven p oi oa' On s6.vs road 100000 90
Pa
ment settlement Of cstm for two locomotives re- $500 -
eeived BIienSion COMPANY lOOOO 90
on ipcome bonds and permanent llOl672 O6
% on seOse boal aSd permanent improvements 73l CT
,l6Ol5l 10
Against this is 10 be credited:
Sale Of s,.smers $4,000
81. al \ p and North Pacific R........... 100000 90
Mel reeu In operating steamers .............. 7957l 20
Ne reoey< operating T. and N r. Il, R... 951G5 81
T..l I'll 1886 81
l4so.S35 10
GRIND l6O1Sl 70
The bonded Indebtedness of your COMPANY Is as fol-
lows .,o-oooo
First Mortgage bonds s2ZJOOOO
Issuei y California Pacific Extension Railroad 49, 800.
Company oVVV5VOo
lDcOLe bOLds Issue, : iJobVuV
---- 100000
Second Mortgage bonds. 100000
which with floating Indebtedness. makes your tOl IA
hiJles nearly Sll,ODO,G0 ..
In the foregoing pages have endeavored 10 state as
briefly possible such Information within my reach a.
will enable yOu understand the present state OF your
affairs The responsibility for the acts that have re-
suited In covering property with such crushl
load Of debt correctly locate without any Efforts
OF mine my duty ends with placing before you the
iaets. GEORGE T. GEAY Wee President.