New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-03
LOCAL MISCELLANY.
RAILWAY MANAGEMENT MPUGNED.
THE DIvrsI0NsN TIE BURLINGTON, CEDAR RAPIDS
AID MINNEsOTA CoMPANY--CHARGEs AGAINST


AND MINNESOTA coMPANY-cHARGEs AGAINST
HENRY cLEws ~ HANDLING BoNDs-suGGEs-
TONS FOR REORGANIZATION.
Affairs IN the management OF the Burllpg-
ton CEDAR Rapids and Minnesota Railroad are approach
ting crisis, and the persons nterestehare making Wig
Efforts for the control OF the property Tie scheme
OF committee Of the bondholers has been published
already in TuE TRIBUNE j. /. Blair, tho President ~
the Company, has issued circular, in which he speaks
severely Of his opponents. Following the more I'M
pOrtant parts " this:
Upon examination Of the affairs Of the COMPANY, in
February, was convinced that Il was hopelessy nsov-
euf TINT part OF the Trustees ~ the bOndholders were
In about the same CONDITION. and that some Others were
~ situated that then terosts might not PERM them 70
should apply for receiver change Of trustees, the
resistance on the part OF the Company might occasion
snhcent delay Ia permit the sale OF the rolling stuck or
its removal 20 another State. therefore deemed 1t -
rortant Nil interests peaceabe Possession VI
all the propert and guard SAFELY until co,ild ascer-
fny, and communicate the facts 70 the hondholde 70
accomplish tls would be necessary Tor the President
and Boad Of Directors tn resign. THIS they agreed TO do
ON the condition that / would accept the Presidency
(which uad declined 10 dol, and that the Hon w. r..
Dodge and Moses Taylor NevY York CITY would Art
directors To this Mesrs Ddee ana Tavor reluctantly
cons nte,i, also on the condi ION that would act as
| President AMI arrangements were then made with
| the new Board, were made eligible az sacb.
| Thes seven gentlemen Ouyself ncudr'O never
owned bond on tue road nor do hey now Neither did
they own any os the ck except snch rus
| ern d.rectOis two owned bond a share %
Stuck 4e ot,ers understand owned some stock, but
Beard Obliged reluctantly change the bylaws
and exe hiln As neral .ng Inc western directors
their aiairs. They stated that Mr. Clews the nna
portion of the e pment bonds that he had old,
nscd. or wH VA circulation ny hypntnecaun, some mil
Ions of dollars Of the various bonds Ter his private
dents, those of Henry Cews Co; that Previous
TO the funding OF the coupons the main line he paid
with the C0mpany's funds, nearly 5000 coo Oi
he pQtl
are the property III tne Company, bat which he has
turn over 10 his assees in bankruptcy assets and
which the said assnces hold peeesrcd claim against
tine bontholirrs and that he aso turned over To said
assgners, or 10 the dsssn ~ Henry CLOVIS & Co..
large amount Of the COMPANY bOno5, wblcn assess
rey ailesc, fully appear i'll tho hands Of the said
ruey further state that when they called Mr. CLOVIS
for hts ns"dnt for MONEYS psld tbn for bonds SOFT he
charged interest a Tie race o 2ia per conI per eaeh so
days and thru per cent per auun IN addition, which
is shown TO be true BY his accoun eur Mt IN he ts Of
the Company white they claim that he owed the Com
pmy the amount upon Shich he charged them interest,
did not cred them with sales OF . MS until two or
LVc months at dates oi the sales. A.s", that Mr..
Ciews Wa drrctOr and ~ anc.a agent OF AL the lines
OF road q AZ he ~ the raeOrs IN TIE com
pans mat CONSTRUCTED az the roads Lit as rector
of the riiruad ht made bargain or contract with HIM
self To build the roads .at nc toge Ter WIN ir T. 6
Calhoun were the Jrnst OF the Milwaukee, Extension.
and that they Nig"d aud lnt circulation Si-O.O'O OF
In ugtn. The IL ,20oO GOO sOO0GO "f fnese
.on,Is he Cie~s, Iiaoeht 20, iAndon. winch
&c mixes hngtn--t,ey Issued. according Ia the
account gwen M SssiV" Vii, In an ex,"ss Of $780,
|
above two ISSUES are stall out
With regard tn Mr. p G. Calhoun may say that about
TIC time tue ruad passed INTO my hands his hank prose
cuted the Company in Iowa Tor 100000. Tncir claim
IL said be founded upon the COmpanys notes These
made az the request Of Mr.. Clews Bonds
oticc ed VITA tsen, and the written in
the notes Mr. Cews CAUSED Tie hyVOthecatng clause 20
he erased om the net AMI rs II would APPEAR passed
the latter n SIR Calhoun MS bank, without the bonds,
'or hrs us and crwaid put The bonds IN crcul-
- -
bank Company viii The bank. 1t Is said,
Las a Large claim against the assigne IN bankruptcy OF
Henry C.ews ~ Co., and viii claim I'll gidcnd from the
Under these ccuIns ances We c;iiu tnas neither
Mr. Ciews Mr.. Calhoun should continue % he trus
tee but that both should retire, aud that the trustee OF
tle bOndnOldaIs should l adsintcresJed pc
pany
Tue amount OF s7,GI2. 800 would he due the present
honhOlcrs and preferred stock, after foreclosure, III
ease payment interest shonld he deferred tin 1877
aud this will answer the inquiries Of mdny OnndBodcs
AZ - the present ebtenss of ths line and also 10
when they might expect ,he earnings O be- applied for
th ir use There is Due employees labor TO May
$I0J472. Taxes due same date over 100000 Amount
due for supplies right nj way. coal and wood ties. rent
81 rolling stock. iron got lately for repairs, &c.
about 10000. In all over $c0O.0OO. which the court
makes preferred deb;s, aud which must be paid 0ui
of the earnings otherwise Locomotives AMI
ears were "a remain the property OF all the
paid for them $4,000 to $4,000. The
gints hired on the road, well tire
service of other companies, arc Ia he paid for
monthly ont af the earnings. The engineer Of the
Company esIimatrs OF finishing Mp the roads,
purchasing five locomotives and 100 additional ears.
binding necessary round houses shops, &c. in lntns
for immediate ssary repairs, 700 tons rails and
A., 900 ties fencing. & 100000 In short, the pre-
lerrcd claims indebtedness aud locomotives, and
together VITA the rent Of the road from
Plymouth 20 Austin. viii al the net earnings
under the best management Etncss you furnish other
money to ply FOR tLen, until May 1877 Ia this state
mont ~ IN ichedness and estimate OF wants ana EARL
jus have included all the roads. considering them
one. Tnefe still another incuubrance on the rolling
stock, which Is second mortgage boud made 10y the
Conn any, known rs the income and equipment bond;
and which is -, 900 900 all IN. roads and
eqapnl nts- and sleclfes certain arr amt perhaps,
other articles Some ~ these bands are reported 10
have becn solf but IL II believed TINT they were eer
aIly Lyi,otheeated.
RECOMMEND the organization Of y company nnder tho
general laws ~ Iowa. under the name Of the Burlington,
Cedar Rapids and I. psil Railway for instance who
snail purchase or take the transfer ot the different roads
uuder fugoc0suie for the benadt OF sLe bOsdoids
,esn made an line who,e road urouerty and equipment
not "a exceed $4,000 per nib and gwen pro rata To tie
holders fh bonds the different ines aud extensions,
adjusted among the holders " Sad bonds that preferred
stock be then gwen for the haance de ON the Original
bonds, tog ther with all interest on ferred couons,
'il Nay 1877 Finally the rights 81 the common STOCK
holders should be remembered ana they should receive
stock To certain ext NJ ~ mat Hisr inc 19niaolderS
tie reminder, II any, should go To Insn. There IS
81 OOOOsO " common stock out, Tor which many hold
el~ along the line paid par.
To = cOndcIscd abatement OF Indebtedness
sud claims -
nocs On te I'm. burlington Plymouth. sj4O0OOO
CnIlous re Nly l. NJ aud ......... Ll-AOOO
Noncs on wanker Extmr mtrest.. g OuOpO
BDlGh Pacific Extension AMI interest. $500 IJ&sVUU
Bouds ON uscatne Western Extension and In
t.srrst .......................... lOOSun0
1000 900
el30i3OnO
r-e,er-aa srh, and uenmbranees ........... 27uOuO
Canal .ock 6DOuOUO
F1,attne drb a. ljO0OW