New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-02-18

NJ them had agreed to take interest In th construo
,scn companies the das when the bonds were offered
for sale Mr.. Forbes sid further:
There been gross negligence on tho part OF inc
directors OF the river roads III tSsnlng ose f,m o
self eontuctoIl, without sey proper a spne. 70
VISION on receiving ,0 int , sSsd them to
for the mpS rect performances ~ their conc ana IN
allowing To control of the roads md their ear"S re
remain with Mr. Graves alter has =" irregularities "o
known.
Mr. Forbes in letter to sidney Bartlett more than
year ago. TO which no atteEton was ever paid, says
Exactly how much cash from our earnings had heen
maid over 20 the Contractors President we had not time
&C. Investigates but. OF course. II the ILL.,
figures are right, about Ntooo anu s ~ tne Con
tractors President earnings as they comc ~ un
he has paid off debts OF the Construction Company'
which, In his loose way, he estimates at ABOUT soo'VOo
las F. JAY a Director in the three roads, spoke
briefly in defense OF his personal character ana ior
more than sn hour defense OF the action OF the Boaru
The point OF his defense was that the Cohs'rucuon
Companies were formed for the purpose OF taxing the
stocks aud bonds these roads, as common In Iowa.
under a law which they have there selling them anu
building the roads, hszarding all the money when
they subscribed in the Construction Company
and no more. This Construction Company on
the upper road raised a capital In Dubuque
OF 100000 and on the Lowe road OF $4,000 con
struction campdny corporation formed In accoru-
ance with the laws Of Iowa, and was aOe Tor tne
amount Of it's capital stock II they dd not pay IN tnr
/ -
when their capital stock exhausted that was tho
END of the Construction Company.
This point he claimed they had reached. He defended
Mr. Graves's character at length Mr. Forbes replied
briefly, saying:
After all these long years OF confidence II Is dsap
poinment aud a grief me to fluid that Mr. JOY ana
some gentlemen VINO had lnueo Win me auu III
duced To join in recommending THESE oolxs "olc III
! terested contractors and That III INC nioss
vicious and atrOcious railroad contract eVc h
matters j with him IN what ne ne SAYS AZ Tue
end of his remarks viz. that we ougnt 10 Work 10
gether 10 save what is ett on the wreck but do M
we should do 1t, all our rights as against the
gentlemen who have TO us win representations
| with regard to the bonds which we have taken.
aud in regard 10 Inc contracts "ncn were
practically an ncumbrance the roads 1hey made
these representations, cOnceaing contracts winch mcre
worse than prior lien OF 81 900 mile. The contract
road which never heard OF until months alter"aro
| never saw 1t until within ten days.
Mr. Joy continued his defense saying the Construc'
ton Company had nothing more than SINK theil
whole capital Of $4,000 IN these roads
Mr. Forbes replied that the contract was not TO build
the road but to not build it, They were to receive Tor
$4,000 10000 acres OF land worth at least g
ST. 100000 IN fully paid stock, and $4,000 mie whether
they built il or not they released from all
| obligation to build the road.
Mr. Jay went on again. after which Mr.. Bird advised
selling the bonds for what they could get and resOlu
| tlons were adopted declaring the bODdhJders have
heard with regret the Committees report OF the
| msmanagemcnt which has brought their prop.
erty the condition which they describe, ana
| az the meager explanations on Important polhCs
which the parties responsible for IL have CHOSEN To give;
requesting Committee persist in getting from Tue
directors OF the River roads and other sources such IN
formation they deem necessary to take the pest
legal advice recourse and when ready, 10 can
another their report ana u coheueF
any measures winch the Committee may recommend