New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-05-16


hfteen millions TO stockholders for 100000; that
Is 10 say created Indebtedness against the road
10 that amount an Indebtedness which did not
exist, and called il n dividend of surplus few
months subsequently he bonded the road for
so"o'Oo to raise necessary moneys say some, to
pay Ihe regular dividends with, say Others II any
man should manage his private business in this
iashion the law would step in, on the application
VI relatives, and appoint a guardian for nm.
iet TINS lawyer of signal ability and man
OF large wealth and Of remarkable execu-
tive capacity as a railroad manager and director,
- exhibited AND proved in this instance-Intrusted
with millions of other mems money, goes on with
the administration of great interests, his reputation
as hnancier bettered rather than injured by this
remarkable exhibition of sagaciOus enterprise. As
understand it, when the stock dividend of fifteen
millions was made, on which only 33i per cent was
called up ClarL and his friends were owning nearly
all the stock of the Lake Shore Road. They had
bought 1t all up and it in order to enable them
to get out Of it at profit that the stock dividend
was made. could never see the difference between
Goulds and Fisk's robbng Erie of money direct from
the Treasury, aud Carks dividing up created stock
among himself and his friends and then selling it
Tor money. Bat the Chicago fire came, you remem-
Der and good deal of the Lake Shore stock went
out OF the hands it was in-in consequence of the
panic that ensued-when the dividend was made.
90 much for one plain fact. Now, further we are
told:
Mr. Clark with the consent OF the directors had almost
ehte control OF the management OF the road, consult
ing from time time upon questions OF doubt with Mr.
schel ana tins plaintiff. Who Executive Com
mittee were Gd interim vested with all the powers OF
Clark deemed for the interests Of the road he acted
upon his own responsibility in behalf OF the road
entering into contracts with other roads purchasing
Whatever was required OF lands, buildings, rOlllng
stock&c buying stocks Of other railroads and corpora
lions whose control deemed necessary az alds
OF feeders TO the Lake Shore Road s the Lake Shore
ana Michigan Southern Railway Company Will herein,
after IN tins complaint be for convenience caed ana
doing whatever else he deemed for the largest interest
OF tne Lake shore Road, ami IN this ne was sustained
and indorsed and his acts approved by the Board Of d.
reetors OF the Company!
There you have key to the position Of nearly
every railroad whose stock is the market. Nomi-
nally controlled by Board of Directors, who are
supposed to represent the interests Of stockholders
at large, it Is really run by one man alone and the
Directors are dummies too wooden even to be sensi-
bic OF the degradation of the position which they ac
cept. For Mr.. Banker makes this confession With
out blush-so far as the paper shows
WHO owns these railroads. The President No.
The DIrectorsf No. Not even the ties whereon the
rails are laid! The roads are owned by fools
and speculators-the words are convertible and in-
terchangeable-the country over. And instead OF
being run IN the interests of the sections through
which they pass or even of the owners of the stock,
they are run simply and solely in the speculative
interests of President and Directors, with view to
Wall-st. combinations
One speculative account has been made public
in the complaint to which refer. 1t has long been
known by those behind the scenes that in these
lyall-st. accounts, manipulated by Presidents and
Directors when purchase of stock turns out favor
ably, II is found To be an individual venture; when
the contrary Is the case, il is decided that the opera
ton was undertaken on behalf of the road for
its credit or advantage
Horace +. Clark a representative of the Van
derbit power, had the reputation on all sides OF
being at lea. honest in his intentions, square to-
ward stockholders in his policy. In the light of
these Lake shore revelations. what we To look
for when the party walls come down Of Rock Island
Milwaukee aud 1t. Paul, Northwest, Wabash, of
dozen roads, or less, which VIGOROUSLY run
under presidencIcs and directories made up of men
not one Of whom but would feel himself compli-
mented to be called simply tricky-what are we to
look for. / say, when these party walls come down
and the iusides are made visible
Chicago, Burlington and Quincy, Hannibal and
St Joseph Michigan Central. these steady stocks
were managed by solid and respectable business
men of NV own BostOn-men who wore white
eravats and never stole cent in their lives without
invoking a blessing on the investment, men at
whom the finger of suspicion never pointed-but
they Quilted the cheeses they sat on and left mere
shells for the rats who came after. What then may
we expect 10 find when the bones over which known
hyenas have been snarling and ravenlng and polish
ing their teeth for years TO be exposed to pub
lie view7
For a few instances in point: Rock Island stock
Is called one of the best securities In market. There
is tradition, built upon regularly recurring annual
reports that the lands of the Company alone would
pay of its bonded debt sold; that the cash on hand
never less than StG0O.OOO-wOulda at any time pay
dividend of from > to 40 per cent If divided among
the stockholders for years this great dividend mas
been expected. and at regular intervals, when All
other means fail to stimulate the market TINS uNl-
dend is talked about Yet every now ana again
more stock is issued and sold to meet the needs OF
the road little by little that Is by millions ana mil
lions, the eapital stock has been than doubled,
and what the actual position of the road is what
the real value of the stock may be- only the Presi-
dent and the devil could at this moment tell-and
doubt not that ii you called upon one for nforma-
tion he would refer You to the other"
Having an idea just here that the Boston girl
was growing profane. and that THE TRIBUNE would
NOT print the exact language which l was at such
main, To preserve in order 20 reproduce said'
Easy. sister over the asphaltum.' She took the
admonltion kindly, and. after wiping her Olushlhg
brow with a blue bandanna handkerchief went on
Then there's the North est-under the same
MANAGEMENT aud look at its condition. Oh, Jefu-
salem! But for a nice nOsegay, take shiii 81 TUG
Milwaukee and ST. Paul There's SAVIOR OF sage
and onions for you. there's
Again checked the young lady, for II was PLAIN
even to my inexperienced gaze, that she was Decom
ing personal,
"Wellr she resumed, count them all any way
you choose up OF down, backwards aud iorwafuS' u
all around the pot, and they count Just the same
a thief's dozen any way. Every scalawag OF them