The New York herald., 1877-11-15
HANNIBAL AND ST. 10.

THE NEW BOARD OF DIRECTORS PAYING yAY
GOULD HIS S160, 000-ELEcTIoN OF OF
rIcERs-rHE FUTURE PROSPECTS OF THE
ROAD.
The badly damaged reputation OF the Hannibal and
St. Joseph Railroad was considerably rehablatcd
yesterday by the payment OF sl6o oO0 which sum had
been advanced by Jay Gould to meet the September
intcres, OF the floating debt. As a sequence OF tho
stockholders meeting. which elected q Board OF
Directors at Hannibal on the 5th inst, tho latter
body--comprising tho following named gentlemen
William Dowd William II. Bliss, William d.
Leonard, Myron p. Bush, James M. Hartshornc, A.
w. Greenleaf, Horace Porter, Henry II. Cook and
julius HaIlgarten-hed meeting last Tuesday at the
olces OF the company IN Broadway, when Mr.. William
Dowd elected president and Mr.. William B.
Leonard vico president. As there divergent
views and cashing interests as 10 which OF their
Dor would mako the most eligible secretary, and tho
discussion having created deadlock in the proceed
ngs by resolution the election of secretary and treas
urer was lcit over tor subsequent meeting. This
difficulty having been dca over the Board consulted
as to tho best and most expeditions means 10
release their securities from tho possession OF
Mr.. Frank Work, who held them In trust
as agent OF Mr. Gould until tho $3.50, 900
was liQuidatcd. Foars wero entertained and freely
expressed at tho meeting on Tuesday that Mr. Work
had his private instructions from Mr.. Gould to offer
some capiious and annoying objections TO surrender
ing the securities OF the company, and that pay mcnt
OF the loan, with interest, would not be accepted
quit claim OF Mr.. Goulds hold upon the securities OF
the road These fears were, however, groundisss as
Mr.. Frank Work responded promptly to The invita-
to be present at tho adjourned meeting OF the d.
rectors yesterday. Mr.. Work assured tho Board Of
Directors that he ready TO act with them in the
best OF good ath that he or Mr. Gould had no secret
designs tho railroad and had that the money
atons and with Interior OBJECT IN view He was
then willing and prepared 10 surrender TO the COM
pany their bonds and securities upon the payment OF
Mr.. Goulds loan with interest," IL wns very embar-
RAISING, he said and very aggravating that plain
and honest business transaction, conducted on both
sdes IN good latin, should create so much adverse
criticism and give rise TO rumors injurious to the IN
terests OF the road Mr. Works remarks received
IN kindred spirit, and the prevailing feeling,
tested By both parties TO the contract. that of
relief that thoy were mutually rid OF each
other. Tho primary object Of the meeting yss
formatics by the payment OF the 100000 TO MIR.
Work behalf Of the directors and the surrender by
him OF tho securities ot the road, consisting Of
ST. $50 900 in third mortgage bonds, ana S5oUu00 in
land contracts These bonds have but a nominal value
as they were authorized but not issued by the CON-
pany; they. fact, simply vouchers that had no
real marketable value.
FAIR SAILING YoR FUTURE
'Yes,n SAID MI Hartghornc, one oi the present d.
rectors who also director under the old rfgime
''and here is the original note OF $3.50, 000 which IS
now can celcd. They would not believe Exchnng
until tins handed round. We hayo got out Of
the tolls very clcverly; We are all right now. Fair
"What aoes that $3.50, 600 note mean. Mr.. Harts-
hornef" asked tho reporter, ''you only borrowed
.That was the actual amount we received" said Mr.
Hartshornc, ''but the Original intention was TO effect
loan OF $3.50 0O for which we gave our note this one
in my hand. subsequently, there was some hitch in
the negotiations and we only received the first install
ment OF $l60000 You may be sure that we are we'll
pleased that the original programme ell through,
else would lind II quite such an easy matter To
the wherewithai to pull through the difficulty"
What disposition will you make Of these coliaterals
n0wf'' ased the reporter.
.sWhen they are all called In, there Is about $35 600
outstanding yetin Boston, believed they win all be
his possession 81, 400, 900 of the bonds Our entire
floating debt is less than S25o,o0o'
"You can say in the HERALD" interposed Vice
President Leonard "that far as the directors have
Investigated into the financial condition and business
prospects OF found them satisfactory
and prosperous"
oTHER BUSINESS TRANSACTED.
"Bcsides quidating your securities by the payment
OF the loan to Mr. jay Gould, what other business OF
Importance was transacLedY' said the reporter.
'Oh, the subsequent proceedings dad not amount to
mucb,n chimcd IN President Dowd "Wc were IN
consultation with our new general freight agent, Mr.
Courtrgnt, and were making arrangements looking 10
the business prospects and management of the
road. Our recent troubles have created dfiicutes
and diiemmas which nothing but patient effort and
work, however, with Will; we know our weak points
and mean to strengthen them. II Will take time and
labor, though, to siraighten out the iangie."
"The money-tha, Is, the $l6o 0o0--was subscribed,
presume, by the present management OF the road,
the Board OF Directors, Tor instance?"
swell, that not necessary to explain. We have
tidcd that difficulty, have taken the road out OF
tho hands OF receiver, have re0rganized the manage
ment have initiated a policy oieconomy a nd substi-
tuted practical experience and business Judgment Tor
lhriitless administration, and we hope that
very efforts Will meet with success. The
road is already increasing In returns Our stocks
quote the rato Of 20 TO 30 and our bonds have
proved about live per cent; there also OF two
per cent IN stocks Our action oil o-day Will
suit Ia growing confidence IN the prosperity o. the
road and the consequent rise OF Its stocks the
kcI"
ANOTHER yIEw OF THE PROSPECTS.
gentleman who Is we'll acquainted with the history
and experience oil the road and figured coHspicu
ously at the former meeting OF the stockholders In
this city when made acquainted with the action OF
the Board OF Directors expressed no surprise
concern. He remarked that he was prepared Tor such
announcement; but he was by no means sanguine
that such action would be OF any permanent or para
mount advantage TO the company. ''rhe danger
averted, but the conditions remain the
same. II s only removing the officially
by reducing 1t into parts Mr.. Gould s got rid of II
Is true, but tho money which paid bm is borrowed
money all the same doubt advanced by tho direc
and their friends The luturc o the depends
entirely It's management Judging by the charac-
tel OF the present Board am not sangune oi Its
The Board is mainly composed OF members oil tho
old Board. In act Wall street ID largely represen ed
the Board OF Directors. stock brokers, doubt,
are good business men, but they are Kept too busy
affairs 10 bcstow tho proper attention
which large corporation, such as the management OF
DAD, demands. am afraid that tho old sipshod
policy will prevail However, II they are honest IN
their professions anu they carn enough money to Fay
their debts, have doubt the road will soon be
placed good condition AS any other road whose
securities sell AT the same price"
The Board adjourned subject 10 tho call OF tho Chair
SPECIAL meeting is TO be called for tho election Of