New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-13
SOME QUESTIONS F0R RUFUS HArOH.

! To the EdftOr or The IFt0Hne'
SIR: have been reading the interesting article
which you printed this morning from Tho railroad
Hoyld and afterward re-readiug the communication
| in recent number of THE TRIBUNE from Mr. Rufus
Hatch to which this is a reply This whole discus
sion of the financial condition of tho various
combatants in the so-called trunk line
war is of the utmost interest both
| to investors and TO tho entire busi-
ness public. The bufden Of Mr. Hatch's letter rests
on The assumption chat the NewYOrk Central Is PAR
] ercelleace the model railroad. Hence he assumes
| that Mr.. Vanderbilt can manage his railroad and
make plenty Of money for interest taxes, rents and
dividends at the present low rates OF transportation
He likewise assumes that these same rates Of trans
portation will ruin Mr. Vanderbilts competitors
| Now we are seeing too many gilt-odgcd railroad
| regulations going down, and too many hrst-class
railroad corporations wrecked nowadays, to accept
so remarkable assumption az this without some
thing i'm the shape of proof. MIR. Hatehs commune
cation has the car marks OF being IN
splrad from some well-pOsted sources of informa-
ton. He should have the means, therefore,
at his command to answer some important qnes-
TONS which every intelligent investor who reads ms
article will went to put to him. If bir. Hatch comes
voluntarily before the public thus oozing with in
formation it is right that investors should tap him,
IA propose 10 do by propounding these questions as
follOws
FIST: What has become of the proceeds of the
$4,000 900 consolidated bonds by which the debt
of the New-York Central Company has been IN
creased since 1872 together with about 1000 OOo
of premium received by their sale, in all
500, OOO. O00g assume $10,000,000 to cover the
cost OF the 22O miles Of fouT-track road between
Rochester and Albany. Now will Dir. Hatch show
us what has become Of the remaining $19,OOO,0OOi
No part of this large sum could certainly have been
used ia the payment of dividends on model railroad.
Second: What is Mr. Hatcr5 opinion of the Hay-
lem leascY The terms of the lease are that the
Central shall pay the taxes, interest per cent on
the debt, and per cent dividend on the stock the
Harlem road retaining its Fourth-ave. horse railroad
line The profit and loss to tho New-York Central
80 far as the public understand shown in the fol
lowing table:
Cross earnings of Harlem Railroad, exclusive
, III g2ySs r' Ta4e
SD 723 900 debt 49, s9O,6l1
$9,O5O,OOo stock. 724,5oo- 1se5.l1l
Deficit IN exccs, Of gross carnug,.... sIl9.457
BY this statement 1t appears that the New-York
Central pays from its own treasury the entire cost
of operating Harlem, which i'll 1872, the last year
they were separately reported, S1,7103o3, and
in addition has to mako up the deficit of @119,457.
making total loss To tie line of Sl,S3S,S4O. II
these figures are inaccurate, will Mr. Hatch tell us
wherein and whyf
Third: Will Mr. Hatch next give his opinion of
the d., W. and T. X. II. lcsscl This road, running
from Dunkirk TO TitusvIe. 80 miles, earned SS,314
over operating cxpenses-not enough to pay the IN
terest OF It's floating debt The New-York Central
have guaranteed, and consequently had to pay from
its own treasury, seven per cent interest on
s., 600 900 of the bonds, making a total loss OF
S2lO.O 600. Now will Mr.. Hatch tell tho readers of
THR TRIBUNE uho built this road and who ol0as the
| bonds
Fourth As compared with the Pennsylvania road
tho Ncw-York Central is the long line, that is it has
| greater number of miles to haul freight between
New-York and leading Western points. Doesn't DIR.
| Hatch know that the freight rates of moving one
! ton OF freight ono mile on the Pennsyl-
| yania road is and has been uniformly less
| than on the New-lork Centr1li IL not
will Mr. Hatch hunt up the statistics, aud tell us II
he finds the facts to be state them, in favor OF
| the Pennsylvania road Then will he tell us
whether it does or does not follow an inevitable
fact that the New-YOrk Central has TO bear in com
petitiye Transportation this difference Plus the in
creased cost per ton per mile OF ITS increased DIS
lancet
Fifth: Recurring again to tho primitive idea Of
the New-York Central as model railroad under
model management, viii Mr.. Hatch next tell US as
10 the Wagner Palace Car Company = is 1t right
that tho large profits of this inside company should
90 into the pockets of favored sew, or should they
90 into the general treasury of the Stockholders
VIII Mr. Hatch tell Us where they do gOi
Sirik: The Merchants Despatch is an inside
freight line, and holds the same relation 20 the
freight business of the Central that the Wagner
Palace Car Company do to its passenger business.
This company is said to deduct arbitrarily 10 per
cent on Ill its freight leaving only 50 per cent to go
into the treasury of the corporation. WIN MIR.
Hatch tell us who owns the Merchants Despatch,
and ,rhO gels The Is per cent?
SereuR: The Pennsylvania Railroad pays the
State of Pennsylvania tax on its capital stock.
Under the decisions of the Court of Appeals in your
State, | am informed that the New York Central
are liable TO pay in the City of New-lork. whore
the general office is located, similar tax on Its
500. OOO. 600 of stock. viii Dir. Hatch look into
the matter, and tell us whether the New-York Cen
trail pay this tax aud if they do not how they
eyGde itf
Lgka: Is OF is not the present policy of the New
York Central spreading dstrust among investors in
railroad propertyf Is is not its policy rapidly
running the investment of the State itself in its
tenn OF canals--an investment of many millionsf
Now Mr. Hatch, you came before the public TO
give it information on this subject. Come TO the
front again and answer these questions, and after
you have done 1t will give you few more nuts to
crack. ENGINEER
Philadelphi,. Sept. 10. 1875