New-York tribune., 1876-10-27
THE CENTKAL AND II. r. II. Il.
SOME REVIEW OF TIE MANAGEMENT


F,fh Art,cie.
Tho prcvious articles upon the Ncw-iOrk Central
and Hudson River Railroad have proved IT'S caWtal
stock to have been openly watcred To the extent "l
Si7 92S 900 since $50. and have presented the hg-
urcs showing that increase of only 1910 per cent
in length of single track since Sept 30, 1870, was
alleged 10 have increased the cost Of roadway ana
track sls,o per cent The figures also pointed ont
that the charges for maintenance oi ~ per cent a
ditional roadway and 53ilO per cent ahullloh"i
tracl GucIuding leased roads in 1879 was 1914
per cent less than for the smaller quantity III
1870 while the tonnage was $3.50 per cent greater
in 1879 than in 1870, thus presenting an anomaly
which furnishes strong prcsumptive evidence that
tbcrc has been further secret watering, through
tbo naymcnt of dividends, not alone from the prem
INN on bond, sold which seem to have been credited
direct 10 net earnings but also from the prih'iph
of such bonds These uncontroycrtcd assumptions
lead to an examination Of tho wisdom aud policy of
the management. In treating of this branch OF the
snLicct-tho most delicate Of orr taSk-we shall
strive to bc strictly Judicial and impartial. present
ing the facts aud applying tho logic oi results
Firsf: Was it wIse and in the interest Of the
stockholders Of the Central aud Hudson. that IFS
passenger terminus was removed from Thirticih-st
and Tcnth-aye to the Grand Central at Forty
second-st. and Fourth-ayci The change made
necessary the hui, ling Of doubc-track road 10
connect the tracks Of the Central and Hudson with
those Of the Harlem. This new road-sX mills
was built by y corporation known ~ the Spuyicn
Dnyyil and Port Morris Railroad Company, with
capital stock Of s9e9.OOO. at an alleged cost ot
S9SO,jiO, or Tlc3,i2O per mile. Tho CON
pany has equipment. The road u LEASED
to tho Central and Hudson at au annual
rental Of about $4,000, or over Tlo'oO per
mile Of road. The officers of the :. ID. aud J.. ~
Company are {. Wand 'rblt, President W. H. Van
dcrbiIt Vicc-prcsid,ut; G. Vanderbilt, ir, Treas
urrr: Robert J. Niycn. Secretary and Cha,. :
Cross. Engineer II should be borne in mind that
thc Spuytou Duy,H and Port Morris Railroad is
strictly tor passengers, built for the sole purpose "
connecting the Central and Hudson with tie pas,
scngcr {, 20; OF tie Harlem Company. Now when
it is remembered that the gros, receipts per mile
from passenger, ol thc entire Central and Hudson
sy,tcm WAS but SS.OiJ in 1870, and H1,215
in 1870, tho cuomiiy of tho rrutai-FlONpO per
rilc-pad for the connecting six niles of road BE-
comes apparent. Why was tho connection deemed
necessary 81 cXpcdlcutl The natural terminus "f
the Central nd Hudson and Is upon the N0Ith
River. A. ihe Thrticth Street Depot easy CON
ncction for >scngcrs was made wa III" Elevated
Railway and numerous horse car lines, with all tie
Southern railways and the central and lower
portion. Of tho clfy 1t clear that the Thiricth
Hudson passengers. where the Forty y-sccond-st
accommodates one. Why, then. was thi,
new liability of 500 900 per annum iucurrd'
II doe, not seem 10 bo a sufficient Justification
10 plead thai the "managcrs' of Central and Ilnd
son. being also the " managers OF the Harlem Com
pany, were the principal if not sole owncrs of the
capital stock of the latter company which run, -
line OF hoIsc-car, to and from tho proposed ncN
Grand Central Depot. Yet il is impossible 10
imagine that il was not the interest of the Harlem
rather than Of the Central and Hudson that induced
the change, which brings not single dollar addi
tona receipts to the company, but Is AN expense of
$4,000 per annum, besides the cost Of mainte-
nance Of six miles of road.
Second Was the leasing of the Harlem Railroad
necessary or even judicious step Let MS for mo-
mont refer to the facts and figures as shown by the
sworn reports to the State Engineer. The lease
executed and possession taken on April l. 1873,
the Central and Hudson IA rental guaranteeing the
payment of the interest the entire debt and diy
dends at the ratio OF per cent per
annum on both classes of stock of tho Iar-
lem Company The lease only covers the
steam lines including the Grand Central Depot. eav
ing tho horse lines in possession of the Harlem
which continues to run them and receive all their
profits. Now, by the report of the Harlem Company
for the year ended Sept. 80 1872. six months PRIOR
to the lease and which included the who'll" property
steam and horse lincs-tEcrc was remaining of Eet
earnings after the payment of interest S5,99o 02i
of debt, and per cent 80 600 900 of stock. the
patry sum of y ,S77 For the year ended Sept 80.
1874 tho company made ITS first report of its city
limo alone. by which il appears that the net profits
from it S20i 1853. Those facts seem to demon
srate that the portion Of the road leased had never
earned more than per cent on the capital stock
prior TO the date of the lease. Yet the "nanagrrsD
of the Central and Hudson. being at the same time
"Inanagers" of the Harlem Company aud large
of the Harlem stock, lease G Of lis earning
pacty guaranteeing 10 pay tho same rate per
cent for il has heretofore strained the whole line
to pay We have already shown that since the date
OF the lease the capital stock of Harlem has
been increased $4,000 and its debt $i2S2,-
2G0, which increases the annual rental $3O3,75
over what it was at the date Of the lease This in
crease Of debt only made necessary because of
the Central and Hudson having changed its passen-
Qer depot which caused 80 many extra trains TO be
run along the FOurth-avc TO make necessary the
improvement of that avenue, tho cost of which was
borne by the city and the Harlem Railroad Company
i'm equal parts Here is another expenditure which
brings no return in larger receipts to either com
pany. Why then. was the Harlem road leased If not
lin the interest of the lessor