The New York herald., 1877-02-08
WANTED THREE MILLIONS.
Trying to Keep the New Jersey
Central over Water.
MEETING OF STOCKHOLDERS.
A Story Of Too Much Diyidend-SOme Pertinent
Questions Threatened StOppage.

tho oftces O! the company, No. ll3 Liberty sl'ee| ~
large number OF holders OF stock was present among
the gathering being Ex-Governor Curtin OF Pennsyl-
vana, and several gentlemen from Philadelphia
Shortly after twelve O'Clock Mr. T.. G. Knight, the
President ofthe road called the assembly to order r
George H. Potts was selected chairman and Mr.
Samuel Knox, treasurer of the Central. appointed
secrctary. Mr. Knox then, by request OF the Char,
made known the purpose oi the meeting, by reading
the following CIRCULAR
THE CALLS SUBSCRIPTIONS.
To THE srocKmoLpsRs The directors OF the Central
Railroad Company of New Jersey asan enclose 70 you
certlHcates OF indebtedness amounting to SsoJ0UU
Is sS n to TO s @ a having these
cer.ineates promptly subscribed for ahe ehse. ,.
hnances while failure would leave them IN crippled
s1s ." the Sas,nass Of Iso the unpaa
sled depression in the coal trade and all shsr ..
over weight Of noang debt is the only barrier TO an
sanasio" rss stockhoaers are called upon
ssr os osn. an az S held sra The
saesslon @ % not be enans nnsso So,ss s
VIII viii be given the ION amount noun has rs
sss @ S ts rms ~ cen, sa
month apart; the whole amount viii be received IN one
ssrn.ioas have been made by parties other than stock
holders which can ue secured only BY prompt ana
q the B,apM ssss w sa 81
called ogsher upon h0r, noss as %
necesstles the company and future expectations and
consideration OF the plan proposed was warmly APP
noss ea Hs The to next
M 4 p st as % possible ss made that da
promptness IL subscribing y AL mportInt, o,n.,o
BENJAMIN Wiamson EdTsrd MiaE IoFn Mean r. A.
After reading the above Mr. Knox read circular
dated December 20 last showing fully tho mode
proposed for raising tho Sc, 900.
PRESIDENT KNIGHTS REMARKS.
President knight then stated that he would like TO
make few remarks Said he:-"I will first take up
the subject OF past dividends not only as relating TO
this company but also referring to many other COM
panies In the country The Central has declared since
1850 DIVIDENDS amounting to s14, AGO. O00 This is en-.
tirely too largo amount Had these dividends
been declared the rate of eight per cent the COM
pany would now have nand So ia, G96 26 hai they
been per cent we would have 80, l33 SlZ o.,
had they been at per cent the amount ON hand
carefully made and verified, and believe them
To be correct. now desire to reier, as q
contrast to the ofsrs pa,S, Of small foaa rum
with which am connected. mean the North Penn
syIvania Railroad, OF Philadelphia In 1859 this road
was in much worse condition than the New Jersey
Central is today The par value OF its stock was $50
per share, and it had two $4,000. 900 six per cent
mortgage srss, SSnas a, 50 Su' and sha1s 1a
The floating debt was perhaps 5000, ooO
The chat,c mortgage sold for sixty.!wo and half to
on April l, and The bondhoders were called to-
eethcr and asked TO fund their coupons Tor several
years. This was acquiesccd IN, and We issued
scrip and aterward redeemed it. We econo-
mizcd in every possible way and Increased the
Committee. Finally, were enabled 10 pay divi-
dcnd OF six per cent Sometimes we cleared enough
able pay considerably more but we I'D.
hered six per cent rule. Yesterday the bonds OF
STATEMENTS or THE cRxrRAL's AFFAIRS.
1.-The stockholders OF tho New Jersey Central have re-
ceived more dividends than they should have, as the
following statement OF the condition OF IT'S treasury
shows" Mr. Knight then read tins statement
Expenses for 1876. ..............-. S,6S4000
Balance. S3, 2oZ, ooo
Less interest all bonds of the
company .................'...si'1. 30 ooo ooo
Less rent OF Lchigh, aud susque-
hanna Railr road. d........-....... 9z2,ooo .oo
Balance. sees, 900
Loss on canals. ~, 900
Balance. ........... s45l, 900
Mir. Knight then continued :-.You see that the
road last year earned dividend OF eight per cent on
the present par value OF the stock. The company
has been Introducing a rigid economy in all
It's departments. and with the prospect OF bet
emergencies are met, eau see no reason
why the amount should not be Increased to 900 600
,hs year The road is in urst class condition and
between New York and Philadelphia Is increasing
naiy, and the business OF the Long Branch division Is
very good. over s4oC0,0J0 was laid out last year"
THE TROUBLE.
Mr. knight next spoke Of the security offered for the
certificates OF Indebtedness described the circu
lars above Tho speaker said that the Central not
tho only railroad IN an embarrassed condition. He
taid many roads that were not coal roads were crippled
Ii something were not done TO make coal
bring more money than 1t costs to nine 1t
the coal producing interests must remain
not demand coal at 50 IS per ton" said Mr.. Knight,
"and IS willing to pay living price oi 81
year ago the stock of the Delaware, Lackawanna
and Western was quoted at ll9, that OF the Reading
Railroad at l05h and that OF tho Central at 100 To-
day these stocks sell at 20, 30 aud 20 respectively
The coal men should como together and say that this
great loss should not come out Of the stockholders
pockets as 1t will do until the price OF
great public calamity that the stocks OF tho
coal railroads should have deprecated to such an ex
tent When the Bank OF tho United States burst up
the event was mourned rational bereavement, but
the capital OF that bank was only half great has
oeen the recent depreciation In tho stock values III
three great companies. This is the time TO build up
aud not to destroy. loud applausc.) Mr.. knight
then closed with what may be termed "a stirring ap
pcal'' for the subscription.
MR.. GEpSEY DESIRES iSroRMAriox
After hr. knight had sat down the chairman asked
II there was any gentleman present who desired to ad
dress the assembly Mr. j. Warden Gcdncy arose,
and after stating tnat he represented 100 shares OF
Central stock. went on to say that, although he APP
preciatcd the remarks OF President Knight, aud
believed that the figures might be all right still he
OF The opinion that tho men who called upon
10 subscribe So 0CO 900 as collateral Tor that largo
amou u of bonds OF the ohIgh Railroad
when II owned by aud Is virtually part of the New
Jersey Central, required some additional nior nation.
He would like TO know exactly what the bonds of tho
Lchish and Wiikesbarre Railroad worth. He had
been informed that bonds represented being worth
sixty could be disposed OF at twenty-five He
sidered that The stockholders entitled TO full
port OF the affairs of the Central and the
Lehgh and WiIkcsbarrc companies lie wished
u know II the $4,000, 900 called for would
pay all the debts with the interest; II the workmcn
had paid, and II the road had any other debts.
He would inquire " II that 5000 600 OF
Lackawanna and Western bonds had been hypobccated
on call loans; lie would like to ask also
what Is the actual debt for present rolling
stock, rails other necessary material Tor
the roau The latest dividends had been
pad by issuing bonds obtain tho means and unless
there wos something peculiar about the company
charter, which he, as "A lawyer, md not been able 10
discover tho ckhoders were liable Tor the
these dividends until all third parties had teen paid
BULL-DuzING A sEARCnEK AFTER TRUTH.
AT this juncturc stockho!der said be would like TO