, 1874-10-05

CHESAPEAKE q MIN.

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we're cropping out above tho surfAce,-moro
money extravagantly disbursed. moro intcreat
unpaid, moro stock.subscrptions unpaid, moro
growing bondhoders, more Investigations
ponding. 1t was only short year ago that the
1nancicrs Of tho concern Advertised: "soll
your Uuitcd States per cont boutls and invost
III Chesapeake l. Ohio Railroads. which pay per
cent" 4 great many followed this adsice and
uvailod themselvesof tho gttering opportunity.
When the coupons fell duo, however, tho houd-
holders found TINT tho interest was not forth
coming. A brceze began to blow among the
bondholdors, and they came round to the Gap
tain's Office to aeek an explanation. THO only
response they receiye1 was, that tloy had better
tako moro bonds inatead ot tho money duo
on interest account. some acceded to tho
proposition, aud kept on pouring their
money through the eieye but others
began to look into things for themselves,
and the result Of their investigation is contained
in circular Which 1as just bean issued, Bignod
by Mossrs. L. +. Richards. VI. Lowenthal, aud
mud Z. L. Andrews. Tlis circular contains in
inspire tho bondholdors with oonfdouco It
| eays: l. Tint the revenues Of tho road oyor tho
running exponsos aro applied to now contracts
Instead Of tue payment OF coupons. 2. That
subscriptions to tho capital Btook Of tho
! Company to the a1nount OF s3.421. .018 still re-
main unpaid, and no effort il nude to collect
| them. s. That tho money paid in by the bond
! holders has boon uspd in IN extrayagaut ms1,-
nor. This is shown in the fact that tho road hns
| coat moro than 100000 per mile, which is only
| cqualed by th, cost Of one other road In tho
country, the Coatral Pacile, anl this too over
| route whore tue right OF way WAS for the most
part donated, and timber was plenty. 4. That tho
Directors hayo used tho money paid for honda
| in buying stocks OF othor railroads, some Of
which ara now In tho hands Of Receivers, and
will involve total loss. As the Directors had no
right to use trust-moneys In this WY, the bou,l-
holders claim that thoy arc personally RESPONSE
bic, md ought to refund the money to the Treas-
| ury to meet tho overdue coupons.
Tlcse boudAolders. however. are not dis
posed to bo sacrificed without o struggle.
| Lucy tlHtEHt ~ tA0 ANHt N1to4GGtlI Aa4e
ncr against tho funding scheme proposed
by tho Directors, mud 1ofuHo to surrender
coupona aecured by q lirHt lien for au unsecured
obligation. especially when thore is no hopo for
any change in the plan OF management, or any
less oxtraYagant uHe Of money. and thus shu.
themselves out lrom Joining in d foreclosure.
They do not proposo to rellnquish tloir present
right and accept an obligation from the
Company which It may carry out OF
not at It's pleasure. They have therefore
boldly faced The music. aud they demand
tho following measures OF Justice; !. That the
tirat-inortgago boldholders alall be properly
represented ia the Board OF Directors. q
That q thorough examination shall be made
into tho legal and financial affairs OF tho COZ.
poration. In order to recover tho unpaid sub
ecriptions and tho Illegal Investments in tl,t
stucks OF other companies. 8. Tint ever,
cent beyond tue sum necessary to opasate Ant
maintain tho road ahall 10 applied to tue pay
mont OF the interest on tho Grst-mortsagt
bonds. Should the Directors rotuse to accedo Il
these 1o4uests, tllon the 1rstrmortgago bond
holdara will 60 ahead and forootosc. Bhoult
they consant then the bondholdess vii! 80 atcat
aud investigate. II taoy do, thoro Ia ever,
prospect tAat they will uueayth g very sespeota
bio Credt-Noblller, aud, AZ it wlll be . commit
too Of boudho!dors having 10 inserost In coyor
lug anything UP, 1t may DO presumed that tl
investigation will be thorough.
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