The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-06-24
LAYaOuLD,s OPERATIONS.
some Facts that Require Public Expisna.
ton.

Rome
ton.
To THE EDITOR OF THE SUN-Str: The
greatest curiosity prevails In financial circles 10
ascertain the exact facts about the 200 Union
Pacific sinking fund bonds which are said TO be
missing. The face value Of these bonds is g.
10000, and their loss would be serious blow to
the credit Of the railroad. Under other man
aeements, reports of such a heavy deficiency
might not be readily believed by investors, but
with Gould In control the position is far different
The public has not forgotten the Wholesale plum
derinR OF the Erie Railroad by Gould and his con-
federates, and an apprehep sion has existed for q
long time that the Union Pacific would not re-
main free from his customary Vaccinations.
People who are given to reflection have Won
dered why road, which was struggling hard to
keep out Of bankruptcy when Gould succeeded
In buying majority Of the stock. should have
soon afterward acquired a capacity for the dis
tribution OF eight per cent. dividends. About
year and half ago Gould remarked 10 party
Of the Union PaciGc, that the stock ws 4, almost
wort hless, and he should be glad 70 sell out his
holdings at cost. When he had been ssddled
with majority Of the stock some time AFTER
ward, In his attempts to marx up the price In
order 20 unload on the street. he resorted TO
the dividend ruse to bring about buying which
did not occur IN mere market manipuiations.
This failed, but he wae so deeply involved by
reason OF the loans which be had obtained and
sadd fed that he was forced to keep up dividends
In order TO save himself from immediate ruin.
OF course, II was n matter " conjecture where
iure. sm bunting TO nearly tsooC,ooc per annum.
enough TO pay eigbt per cent. dividends. People
who have travelled over the line frequently and
not earn enough 20 warrant the payment Of
these dividends, and will not for years. Ma ural-
~ enough, II has become a matter OF inquiry
where the road Gun obtain money enough to pay
TO It's stockholders. The only fund upon which
u can draw, so far as known. is that derived
bonds. Twelve millions out OF the sixteen mil
hon. authorized In 1874, were REQUIRED TO take
lions then remained TO take care Of the floating
de6t and to provide Tor the Credit Mooelier note
This note has never been taken no, rnd some
people conjecture that the 100 bonds sot apart
for paying II have been sold and the proceeds
used 10 paying eight per cent. dividends. Some
aiege that the bonds have been disposed Of to
ko care OF equipment and construction. Some
are more uncharitable still and say that they
should not wonder II the bonds had been spout
The matter to the street il a. yet enveloped In
mystery, which IL made greater 10y the curious
apathy OF the Union Pacific officials. who have
not In anv public way denied the truth of the
published statement. Ii was believed by some
friends Of the stock that MIR. Dillon, President
card aeasins the allegations th.t the 70 bonds
were missing, ana they accordingly bought the
nrst editions OF the afternoon apers. supposing
| that the earliest opportunity would be em-
braced Of contradicting the statement. Strange
10 relate. not a word appeared from Mr.. Dulon
or any officer Of the company.
he connding Stockholders then seized upon
the idea that the morning Journals would CON-
tain the denial Of the President that the bonds
were missing. This hope was quickly oispelied;
for no more anusion TO the matter was made
than by the press Of the afternoon. Now they
begin 20 believe that the bonds are really MISS
Ing aud that the reticence Of the officials 10
casiooed by their knowledge that the charges
true.
One OF the largest loaners on the stock, and
holding II personally In addition, said that the
behavior OF the officials In control incom-
| prehensibie. What he said, would Com
modore Vanderbilt do II such charge was made
Would he not Immediately and In the most en-
| phatic terms contradict ~ suppose It were
| alleged that the Pacific Nail Steamship Co pany
| had parted with its bonds Improperly. Would
not Its President seize the earliest opportunity
| TO contradict the report II untruef''
so said, further, that AS ne was largely inter
ested In the company's securities he proposed
| 20 have the matter explained reg riding the
bonds alleged to be missing, or to give the mar
ket the beneht OF hts holding of stock. One Of
| the former directors had Informed him sum
| GENTLY concerning the resolution passed at the
time Of setting the bonds apart for certain pur-
pose, ana be was forced TO believe that some
TIL Y Was wrong IN the subsequent prooet ings.
He had been greatly surprised at the mud m
ner In which the Union Pacific officials acted
under tue charges, anu ne was determined TO
| probe the matter to the bottom.
The Zee ling In other quarters Ia very much the
same, and u 10 generally believed That the bonds
have been Improperly USED. 1his thing Is GER
| tain, that oh rges are made by various parties
that 2.nOO Union Pacific sinking FUND bonds, set
apart 70 take uD the note for t2,OUu,00O, held by
the Credit Mobiler Ranst the railroad, are
| missing; that the Union PacIfc officials, while
they know that these eharses have been N AIDE
public. and are a common toplc OF conversation
IN financial circles, nave, 30 far, refrdined from
denying them. Tho conclusion Is therefore
reached by most people that the statements
made concerning the missing bonds are correct.
bTIRADOUT.