Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1876-12-14

and four months; that tins of money ST.
2sl 50) remained in Mr. Sage's hands a year and a
third, upon which ne allowed interest per cent,
whiie the company was paving II per cent for 1t in
the shape oil coupons upon the equipment bonds"
The Construction OF the BelleviIle Southern ILL
nois Railroad.
The 81. Louis. Alton Terre Haute road was leased
In 1867 by Iiden and his for ninety
years TO the Indianapolis St. Louis Railroad Com
pany, annual renal Of 30 per of the gross
earnings. with a provso that in year should
the renisi amount to less than $780, 0o0 This lease
was guaranteed conformity by the Piitsburg, Fort
nail; Cleveland, gainesville Ashabula, and Indian
apolis, Cuciunafi Lafayette Companies. When
this lease was made, the ST. Louis, Alion Terre
Haute Company retained the Believile Branch. and
al some time either prior after the lease Tilden
Co. constructed road So miles long, from Beeville
to Dequoin, which is known the Bellesille and
Southern Illinois Railroad.
On this road bonds the amount of 81, 900
Issued and ii Is reported taken by the Directors
Iievhere in the neghborhood of so. They finally
leased this new road, in undeveloped country and
without any rolling stock upon it, to the St Louis,
Alton and Terre Haute Company. for 40 per cent. Of
the gross earnings. The equipment bonds above al
luded to were issued to stock this new road.
ANOTHER LARGE DIVISION.
The committee of the ST. Louis, Alton Terre Hsu,e
stockholders in 1873 hun, in the of ILL
nois Railroad Commissioners for particulars in
regard TO the organization OF the BelievIle South
Illinois road, aud could obtain very little infor
nation, aud Poor's Manual, the recognized railroad
authority of America, has scarcely given any account
ton to the s100000 bonds the share capital OF the
comnany Is set down at Sl,6S000o. 1t can not
| this stock, and the general presumption is that
| II was divided gratultousiy among the Directors
who bnit the road and leased il 10 the 81. Louis
Terre Haute Alton. 1t is stated that the lease of
the Beeville & Southern Illinois at forty per
OF the gross earnings causes loss every year the
lessee, the ST. Louis Alton & Terre Haute Company,
estimated AT about twenty per cent. Among the par
ties who constructed the Belleyille Southern ILL.,
nois road, and aierward leased it to the unfortunate
| ST. Louis, Alton Terre haute Company. were Mr..
Samuel j. Iiden and four others of the Trustees of
that company As to the propriety OF their acting In
;asaa 60 h.ps,s W., ~ ,,.. 20 !, 10 ~ ~,
mitee of the ST. Louis Alton d Terre Haute stock
holders Is definitely stated in the following
graphs, which we clip from their reports:
THE LEASE THE BELLEvILLE 4 SOUTHERN ILL
Sois ROAD.
"The lease Of the Beeyilie Southern Illinois road
does not compare fayoratly business transaction
with the lease OF the main line. The same persons
who leased the Ind annapolis & St. Louis Compan
| the main line of the Terre haute road, which
old road. equipped, fenced, with stao-houses and
developed local business for 30 per of the gross
earnings and the taxes have leased the road of
Believlle southern Illinois Compauy-a road with
out any equipment without astaiios-house a fence
with an entirety new aud undeyeloped business-for
40 per cent. Of the gross earnings and the taxes
MISLEADING REPORTS
| "The annual reports Of the company are mislead-
ing with regard TO the rr06s eri we'd from the Belle
vile and Southern Illinois business. for the reason
that in calculating the expenses of the business nc
charge Is made Tor the amount pended in
ton on the southern Illinois extension, for the
interest upon the three hundred thousand equipment
| bonds. both Of which things items of expense
| incurred by the Terre Haute Company In doing
Southern Illinois business upder the lease Taking
| the accounts they actually stand in the annual
statements for the last three years. and. making
the calculation properly, 1t appears thar the Southern
Illinois lease has thus far been matter Of consider
able loss To the Terre Haute Company.
SURPRISED COMMITTEE
"we we're not little surprised. on examining the
from year show that the lease of Belle
vile Southern linos Road Of great profit aud
advantage TO the Terre Haute 4 Alton Company.
MORE SURPRISES.
seThis surprise was increased when We discovered
that 10 make that appear, the accounts improp
eriy made up. IL evident, without any misrep-
resen,,on that the lease vas OF great ADVANTAGE to
| the Belevilie Southern Illinois Road was who'll ,
built from the sale, at a low price, Of the eigh
| per cent. bonds which were guaranteed by the
| Alton & 1erre Hsuie Company. aud the forty per
cent OF the earnings which, by he lease reserved
| TO the Belevilie 4 Southern Illinois Company al.
ready more than paid the interest upon the bonds o
the COMPANY; that the stock holders of the Belle
vile southern Illinois Company, who have paif
upon the credit of ~. Louis Alton Terre Haut.
Company, and about to receive dividends upof
the s,ocx which has cost them nothing. That IN,
Directors OF company should have made lease
favorable TO the Bellevilie & Southern Illinois Com
pany. aud so unfavurable to the 81. LOUIS, Alton
/ Ierre haute Company, was TO Us, Tor long time,
matter Of great SURPRISE"
THE MILK IN THE cocoAHuT.
This great srrprise'' of the committee, however
was destined to oe finally and efiectualy dssipa ed
for they made the pleasant discovery cut
the trustees Of the Beilevlle n Southern iii
nais {, mpany, i've Of them-including Mr.. samuel J.
Tilden-were directors Of their own ST. LOUIS, Ato'
Terre Hsute road, and were, as the committee wer
! informed, the principal stockowners Of the lease,
Belleviie Southern Illinois Railroad.
srDE SPECULATION.
1t appears that prior to the leasing operation
it'd .t.nna
Alton Company not only paid Us bonded inter
est, but per cent. dividend the preferred
stock which caused It to sell up to LOG, ana tn
Of the shares, who alone could have
Of the intended action the leases. prudentiv dis
posed Of their holdings aud sod ''short'
! into the bargain, as a mark OF their appreciation o
| what 90 result from the making Of the lease
aforesaid. IL their fault OF course tina, IN
stocks aferward far in the direction Of
that somebody reaped the reward of The deserving
but, as Col. Sellers remarks, this was "oaly . sid
| speculation"
GOV. TILDEN AND AssoGArxx
The last paragraphs Of this committees report which
embody its conclusions aud recommendations, ar
plain and prosaic enough; but they emeued
touch the heart OF any but an obduraie railroa,
jobber- The committees unsophi-ticated Language
Is more impressive than any that mere outside Oh
server employ In such cause, ana We subjoin i
In It's native purity:
CONCLUSIONS
"The conclusion of this whole matter Is that, In IT
present management, tncfe - very niue nope Tor
stockholders Of the st. Louis Alton Terre Haut
Railroad Company The question is, what 20 do? Ih
first thing that suggests itself tight these variou
illegaities in detail in the courts by a stockholders
suit. IL could unquestionabIy done, aud would re
suit In net gain, in AL probability, 10 the com
pany sufficient TO pay dividends upon a larg
portion of the capital stock. Ii better cours,
Is open TO the stockholders this should be pur
sued. But is apparent that any remedy partial
inadequate that leaves the corporation In the handt
the present management The point OF attack should
be the possession Of the corporate which, oh
tanned. the property be managed In the INTEREST,"
Of the stockholders, these illegaties, aud perhap
many others which have discovered. can b.
righed, aud. In our opinion, the company PAL
dividends upon all its stock"
|
From the New York Express (Democrstc).
Samuel J. Tilden's Terre Hsute Rscord-Is There
James q. Blaine In the Democratic Partyf-
Facts aud Figures for the St. Louis Convention
|, The Complaint Filed In the United States Circui
Constellation, Division. and silence!"-Wlil
| the New York Sun Please Copyi
There Is at present bill before the United State
Cir cult Court for the Southern District of New York
sitting I'm equity wherein the ST. Louis, Alton Teri
Haute Railroad Company appears as complainant ant
Mr.. samuel j. Iilden as the most prominent defend
ant. The complaint, IN brief, demands account o
cert ain moneys securities entrusted 10 the defend
ants, and Mr. Tlden, in brief replies by asking
getting tine to answer until the LIST OF July.