New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-08-11
Deficit in ls72........sl, lO4,e72 06


large increase OF earnings IN 1873 over 1872 is not
70 he taken as indicating an enlargement Of traffic on
the line because for several months during 1917 por
ton OF Il could not be operated, having been "asneu
away by the floods OF the preceding Winter, ana was
not reopened for until the latter part OF that
year.
For the sir moths ending 80 1874 the earnings ann M
esinsied IN 009 IN
Ipprs. paid on bonded June 80 lS74 l2o7oo w
The most Important circumstance to which your at
tenton invited is that directors have not been
enabled provide for the payment OF the interest due
on the lst day OF Jny last, on the series OF
bonds known as the California Pacific Exten-
sion Bonds" which were issued by the Califor
nis Pacific Extension Railroad Company, and guar
anteed by your Company to the amount OF s3oooo nor
for the balance OF the series known as Income Bonds
which were issued By your Company (under dferent
management from the presen TO the extent OF &oooo
sterIug say N5OOO0O and which your present OH
GERS have made payment to the extent OF SlOoO IeaV
ing OF the principal now unpaid about 81 100000
A corporation. ike individual, should be mindful
OF its good and credit, and when 1t finds itself I'M
able protect obligations 10 which its name Is attached
II incumbent upon it to fully set forth the reasons Tor
its inability present instance to render our po-
son entirely clear to all concerned have thought 1t
necessary TO state 10 the history of the enterprise
promising however that the records of the actions OF
our predecessors are surprisingly meager considering
the magnitude OF the interests IN their charge.
HISTORY OF THE CORPORATION.
The California Pacific Railroad Company was formed
on the 80 day OF January 1865 by the consolidation OF
two companies known respectively as the San Fran
cisco and Mary Railroad Company" and the Sac
ramento and san Francisco Railroad Company" with
capital stock OF S5OOOOO which afterward. on the
9th day of August 1862 increased to sO0O0O The OBJ
feet the consolidated corporation was to construct and
equip road from Vallejo to Sacramento and from a
point of junction that line TO Marysvle Immed-
vaffe he ahove@
formed VIZ the Attn ddy OF January, 1865. the new
company entered into contract with Dewitt q. Haskn
and James r. Flint for the construction and equipment
OF the line between Vallejo and Sacramento. and
the branch TO Marysve. The consideration be paid
BY Company contractors, IS 100000 in
ner following:
Two million hundred and fifty thousand dollars in
the first bonds of the Company, s30OJOJO in
the full paid stock OF the Company with the further
That any bonds issued IN aid Of tne enter
prise. by the counties into through which the road
ran should be paid at their par value
IA lieu OF the same amount OF stock But IN 1862 the
amended to give the contractors the
county bonds addition to their stock. 1 understand
$4,000 N bonds were issued and were delivered to
the contractors The cOvenaned that the
line should be constructed and equipped equal 10 first
class railroads the United States. No material pro-
gress toward constructing the road under this contract
appears to have been made until 1867. when James p.
Flint seems 20 have abandoned his position
contractor favor Of James NJ. Ryder and Will
liam f. RoelOfson, and the work Of con-
struction commenced under the superntend-
ence Of Mr. Robert /. Harris. the Chief Engineer
OF the Company During the progress of the work. Mr..
Harris called the attention Of the directors 10 the fact
that the road was being properly constructed, and
warned OF the liability Of an accident which sub
seauenty occurred viz the washing Of the track
between Davsvle and Sacramento. Tls cOmmunloa-
ton appears to terminated the connection OF Mr..
Harris with the Company
AN IMPROPERLY CONSTRUCTED ROAD ACCEPTED.
On the 23i day December 1862 your directors met
and resolved substance 1st To accept from the con-
tractors the road in its then conditions 81, That the
contractors lad spent more money and had done more
work other and beyond the requirements Of their CON
tract aud had built better road than the contract de
maudrd; 81, That the Company pay TO Ryder, R0eGf-
son and HasD, contractors, beyond the contract price
for SAID labor, ana finishing, the sam Of sl3o-
900. in five notes or the company ptydoie IN
Is o. 80 &c AZ months, with interest at II per cent
per annum, said notes to be deposited win milton o.
Latham, Trust and in 70 far as may be necessary
therefor be used in the construction OF the CaOrna
Pacific Extension Railroad Company, and that all suDs
dies from couuhes Delosg TO SAID contractors AN Vnat
s. 10000 ont OF the $1,OJOODO capital STOCK OF the
Company be delivered 10 said Ryder, ROeOison ana
Haskin for the purpose OF enabling them 10 cOnpote
and surrende. finished said railroad ana ia lui PAL!
The object Of this report before you the facts
disclosed by the records Of your Company is not my
purpose to anmadyert the correctness OF Judgment
OF good fatl OF directors some Of whom we're
men Of high standing and acknowledged hnanciai
ist' That Tie contract required the road to be built
and equipped all respects equal To stcass railroads
in the United States; That the Chief Engineer had
pronounced the mode Of instruction TO he faulty, and
mat portion Of the road unsafe which soon after
proved TO Do the case; 3D. That III the face OF ths
protest the Directors not only accepted the road Dut
resolved that tle had done more and better
work aud had spent more money thereon than their
obl CATION with tue Company required them 10 40 ana
gave TO contractors Sl3OOo IN the oDhgatlohs OF
the Company, ali subsidies received from conates ana
O. 10000 The capital stock " the Company; ana II
viii be noticed that tpis stock donation has annexed 70
a. the EXPLANATION that is needed Tor the purpose OF
enabling Mrssrs RYDER, RoslOfsJn * Haskln to com-
pete and surrender nnlsLed saiu fafoau ana /" iui
Il further appears that the nth day of October
manifested their hish appreciation OF the chsrac,
ter of the work done by tue contractors, and
was adopted (authorziDg tue President 10 borrow
$4,000 to secure the roadbed Winter storms
ceived the Of the road from predecessors
advised that FAR from the roadoed or equipment
nor and has since required the expenitu OF large
sums OF money TO make IT safe or Trustworthy
TIE CALIFORNIA PACIFIC EXTENSION RAILROAD.
ON the 2nh OF March, 1863. communication was re-
ceiyed by the directors from Messrs Ryder Roeofson
and Haskin proposing incorporate company to be
tnown IA The California Pacific Extension Railroad
Company, for the purpose Of building branches
20 the main line OF your road, and asking
guarantee Of YOUR Company on the bonus W Dc ~
sued by the E1tensloD" Company for such purpose.
o. The SANG DIV your ID rectors passed resolution
guaranteeing the bonds Of the California Pdcnc Exten
San railroad Company 10 the extent OF $4,000 per mile
and IN pursuance such resolution the then officers OF
your COM pany affixed the guarantee or your Company
70 Ionds Of said Ex tension Company the amount Of
s3 10000 have Lot been able 10 ind the records OF
books OF aoeOant Of your Company what Disposition
We az bonds claimed 10 be a valid and existing
hen Oh your property, and Ia tae same on whkh lhe
sein-annual interest due July Is IN default On the
92I day OF December 1862 the forms OF consolidation
were had between your Company ana tie " EIeneon"
Company. the capital OF the eoi.soIasted Sompany