New-York tribune., 1876-10-05
MICHIGAN CENTRAL r. r.
A REVIEW OF ITS CONDITION.

railway trustees and managers. who have Lee i'h
less TO their trusts and who have conducted 'he
interests confdcd TO them entirely Tor tAclr own
advantage without reference 10 the rlghlS ol l,c
stockboldcrs-tle real owners of tic property-"ll
do well 70 heed. The widespread and profound III
forest manifested i'm recent editorial statements ana
communications in your columns tina; have shown
the manner in which valuable railway property -
being ruined by the men who control H. an" ''e
indignation of the aroused stockholders demonstrate
This and prove conclusvely that a movement has
begun that will end in oycrthrowing the ofnc'"is
who have enriched themselves ont of The spolIs ot
plundcrcd corporations, while they have worn t"e
mask of rcspcctabty and claimed the considcr''loh
due to good citizens and honorable men.
To them has been given the untrammccd manage
ment of property of enormous value, with the n2ht-
ful expectation that they would invest their means
in that property and would useevery effort to a'i-
vance its prosperity. Instead of this they nave Dee
filling their pockets by schemes, leases, and modes
of policy which benefit only themselves, and sap 'he
very lie of the great bodies corporate OF when ey
orc tbe heads By means of the positions which
they maintain in the cOmmunity-until their wrong
doing is cxposcd-and the confidence repoSel III
them and strengthened by the reputation ana IT,
sources of the companies which they manage tneS
become the guardians of the investments ol NIuo"'
and orphans, of the most helpless classes oi the peo
nle and then they betray those who rely on them
There has been far too long tendency on the par'
of railway managers to ignore entirely the CLAIMS
of those whose rights should be sacred and to thlnk
only of their own pockets Stockholders must unlie
to take vigorous action for the checking of this ten
dency and to call to q strict account the people VINO
have been placed by them IN Official positions ana
who have bascly deceived them.
Let me call the Sttenion OF your readers 20 one
railroad where there is most imperative heed Ol
change for the better where the conduct OF TIE men
in power has been incXcusable and hagrant, ana
where redress should be sought by every Lawful
means without delay. / refer to the Michigan Cen
tral Raliroad-a line whose stock under proper man
agement would now he al par; line whose 3'Ooo
stockholders have been most shamefully ill-nscd
and whose property has been the treasury from
which a small number Of men have amasscd great
wealth. while the real owners have been cheated ol
their due. Only few years ago this company was
paviug regular dividends: the stock was above par
and very little of it in the market. All dlYl-
dends have ceased. and the price Of the stock has
fallen to 10 or under. What is the cause of this
great changei IL is not far to seek. Turn to tho
companys condensed baance-shect of May 81
1876. and the rock on which tho fortunes of the
Michigan Central have been shattered is before your
eyes II IS in the item of Construction branches
81. .5sS 2OI OG. which is the amount expended by
the company on its leased roads. and this amount
covers disgraccful record Of mismanag"mcn trick
cry. and bad faith to stockholders.
From 1860 to 1872 the company paid TO its stock
holders 81 per cent in dividends. Since that time
nothing has been paid II is the leased roads which
bayo brought about this result for. a. has before
been stated. the Michigan Central Railroad Company
has paid ont over Si.jOO,OOO on ITS leased roads
more than it has received. The Michigan Central is
an old-estahlishcd road very fayoJby situated for
doing a lucrative business The rapid growth of
the country now recovering from the depressing
effects of the panic of 1873 will certainly increase
that business steadily and largely II Is not likely
that any iuorr through lines will be built IN That
part Of the United State, for many years. Frol
these considerations is plain that the future of ihc
chigau Central Railroad is orc Of great promise,
if tie stockholders will join in protesting against
the policy which has depressed the yalu" Of their
property, and in insisting that hereafter Nichlgnn
Central shall be managed in thrntcrrst Of Michigan
Central and not in the interest Of tic leased lines.
which are parasites upon the principal corporation
allowed 10 prey upon it merely that they may
swell the riches of certain fathlcss officials. The
money belonging to the ,tockhodcr, ha, been. is
now being and will be squandrrcd on these worth
less roads which have been saddlcd upon the Mich-
gan Central.
How long will the stockholders allow themselves
to be thus despoilcd when by omphatcaly asserting
their rights they put an end % these cYllsf II
they cannot induce the present managers Of the
property TO do their duty by mdcr means they can
compel them by the courts. Railway Managers IN
Europe have been imprisoned for years for rcglrct
of duty or for wrongs far less rcprchcnsihlr than
those pcrpetratcd upon the stockholders OF Michigan
Central and of many other American railroads.
An organized system Of robbery has bocn carried on
without check by some of the railroad magnatcs Of
America who have piled mp enormous fortunes by
dyering money from the stockholders To I'll their
own pockets The stern grasp of the law should
bring them TO sense Of their responsibility to those
who have trusted in them. AMI should force these
custodims OF the property of widows and orphans
10 mend their ways The Michigan Central Railroad
is "A through line running from Detroit to Chicago.
Is there any propricty evidence Of good and faith
full mana cement in the leasing Of roads running
north and south throughout the state of Michiganf
There il no doubt that the trustees who have al
lowed these swindlcs TO be perpetratcd upon the
road are individually liable to the stockholders Tor
the injuries that hayo been done thom. Well cstab-
lished prccedents in European courts sustain tlis
Wow. and tho opinions of American lawyers of high
standing confirm IT.
Another thing the stockholders have the night to
demand of the directors is that they publish
regular statements Of the business of the road in
order that the investors may be fully informed as
the trustees of their property The receipts of
each week should be published and monthly state
mcns of receipts and expenses should be- given 30
that the net results may be known by the stcck
holders and tho public by the 10Th of the ensuing
month.
But this is by no means all that the Michigan Cen
trail stockholders should find out from the officers