, 1876-07-15
nk f,t1nIYx. -

EQu.rNEsr noxns. ....
Tho last matter 10 which we called the attention
Of the I,oartl was with References 10 the si0 ooa
s md .od y ths blfeetof: II jill 5rsf 'sasq T.
tat this vas in direct violation Of q speclnc pro-.
y!s9Es With regard TO the Issue Of tho mortgage
5 e &: %1 %IEs 80 8:
s@ Fsss: s"s s'sy l. rs!as'a ssfss
q ss!G " wso sa Iss s1a ws
!: 's' sa
That IN 10 say, Ill tho bonds whc! The Company
eou,a is.ae nnicr Is charter muat hc per cert
se eas eana aS t. nS1a ssa nsas! nan ~ sst
fors, \, lrts Than par. 1twould hectn. therefore,
to s Be tae sty q hs pireec Of ths Sop91I
Gn1tcr ctth"r T., Fer IL It that they wcso reduced
70 pcr cen! bond Of that Tho difference between
q rn @ 5 sa @ Ss A. e ss Ssnt e.
= as%! ood, seemed lioest 4ssia' s 10 ": !ss
Company. sna'mnch II. fde sfotthosder* 1rtrr not
contatttd ,uM re5frtntt n thc tssus or Mat bond,
s sssa.sy t1ii%rs eJ J1ff'"' 'Af'e!f<' ''f"<a A'
THE Nights or THE rnErER1Ep sToCKnoLprnG
VIOLATED.
fnrthcron n The report Of Tho COMMITTEES
arc to be found tho following grave cliargcs Of l.
ylolatton Of the rights Of the preferred stock.
llv!tlers:
In that connection we called the attention Of ths
,oaf'l 70 ths I'M fopric.y ana liiegallty of which
thete bond. ~ lien npon the earnings Of ihe Com,
syt s es 70 s Rssn 'e,s ssn hs Gssa
~ rouro,!. l,aye been regularly pai; but 20 cash
,xi!cn' have been Ga'!d ..pou s
of, .thr Company. which secured the ptl.
uriftc. Of the second morteage bonds and OF
n w sa n any tnf deeS pts a
trnr. OF mortgage creating lien upon tho property
srnsSses r II pgr t. thn ehs Of
bc male by TIC said St. 1oujr, Alton i Terra
ilante i'ai!:aaI Company. nnie,s majority In the
stock shall have e1nre.:ly. consented thetete by
vote at meeting Of tne'' hodsrn, called Is aforo-
| said upon notice nE nf1rean!A."
This meeting has ncycs hccn held. and the con.
sent Of the preferred foeki.odcra to the ,ssns Of
this nno,trn.c har never heen given. 2make 4 ad-
why's hare lien Hp"n The net arnns. next after tlso
.ecou.' mortgage 6nnds, It was embodied n the pre-.
IL entitled to dydeus at The rate of pcf cent pei
aunnm. payable a,!utn!ly on the lat dry OF MaJ OF
out o The net ea!nnss Of 9, ,0
" lntslS,t ~ its bond' md contributions 10 III
iiut. In 1ioia.ion of this contract with the PIE.
fetrct stockholdcr, embodied IN hls certificate Of
we nE Fl ss Il. r5s. q s S e. ,
ar't mortgage, the Directors of thu Company hava
irenel thIs equipment banI, ard they nfe rccogniz.
Ing the coupons aa having priority over tho pre-
fered stock rs lien upon thu net cnrnfngs Of ths
Company .... -...
4 COSTLY r1HASClAL OPERATION ron TIE COM
| rAEY.
This report gives the following account oi
some financial operations which cost the Com
pany considerable In the shape Of largo diiFcr.
cuvo III interest:
We also learned from the actonnts Of tho Com
rany certain facts In regard to the fssua Of thes.
equipment bonda. which mny be uf interest, +
tiioy azc mt Of importance. to the stockholdera
tho Comp,ny. From, an account recently stated Il
the Company hy Mr.. Kasxcli kagc, It appears tha
between thr ..0th Of June and The 10th 0f Dcccas
her, 1H70 the PresIdent Of t!le Company. Mr, Bnt
lcr pafd nscr to hin, S270, 4B.. ~, the proceeds
Il. we aupptsc, Of tht $780, 600 equipment bonds
On the .aih q! December. 1H70. AZ appearx by Mt
sagcs account. this mnney hai MI lkcn pakl o.,
for equipment. except tho nnm Of $lf'. 900, whic
Ind btcl, repaid tn Mr. ut1er, tho President Of H.
Company. aud the balance Of 81, nj, I'll, whic
rcnni1,eil in Nr. Sage'e hands. The whole Of tht
L last balaucu remained III Mr.. Sage*k handa year
anl +omc I,nrttuna Of It for more thn, two Year,
! the average being yenr AMI four months: 50 tha
+ ,hlH sim If monry .s47. 201 i5l sen,aned IN h'
: Sace's hands a year and II third, upon which h
Il allowed interest ut per cent, while tho CnmpaH
/ was pnSng II per cont for II in The shape {
}. coupons upon the equipment bonds.