New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-07-26

...a This was agreed to by the board, and divi-
md Of so por oentiwas paid TO the stockholders,
nj the remainder % per cent, was returned to me,
sbeei 10 The consent Of each stakeholder, several OF
,,bom refused their consent and received 10 per
cent of their original investment.
Before the second payment was received from the
limited States a letter addressed TO the board,
$40 the New-Orleans stockholders, and was signed
nv other stockholders in all representing four-ffths
81 the whole capital stock of the company, request
INC that only 20 per cent of the anticipated pay
mont should BIO divided among the stockholders,
aud that the remainder, % per cent should be re-
loaned TO me to enable TO pay pressing debts
ipcurred in constructing the eties, andto continue
.bs work. The money due by virtue of the
sooond assignment was duly paid by me to
the board, but it held that it had no dis
cretion but TO distribute it pro rata to
the stockholders, and that 1T was for them indi-
vidually TO authorize the relOaning of the 5S per
cent 10 me- A circular was issued by the board to
the stoeSholders referring to my pressing necessi
ties and the Importance of sustaining me in the
v,rk Impressed by the tenor of the circular with
tbe belief that the request of the board would be
carried out and that the 20 per cent dividend would
ho unanimous thing, fOur-ifths of the stock ac-
osDted il. and left the remaining sum tn meet tho
necessities of the enterprise. The board, however
authorized the payment of the whole 7S per cent to
those who declined to take the 20 per cent
This action gave to one-ffth of the stock 1928
on each hundred paid in, and to n few who claimed
"a per cent out Of the first payment 1856 on every
hundred Ii is the complaint of these stockholders
which has prompted the recent reflections upon my
action. The great majority of the stockholders
held that it was not right to distribute this money
among themselves aud leave the debts created on
account of the works unpaid, although my prompt
payments, in accordance with my assignments, gave
them the power to do so. They received only
"a per cent from these two payments
while the Others got ali their money
hack with a large profit and the result was that
they were indignant at the unequal distribution.
BEFORE TIE third and last payment was made a let
ter signed by large number of these stOckhOd-
ers. was addressed to me, requesting that would
take such steps might think necessary to equal
lie these dividends and reierating the proprety of
disehareing the debts against the enterprise.
No other course seemed so certain to meet the
wishes of four-ffhs of the stockholders as the
determined on. ] paid of all matured obligations
incurred in building the works, and paid the remain
der amounting to 80 per cent on all stock that had
received less than 100 cents the dollar. and moth
ing on that which had received 1913 and 156. The
board Immediately called meeting of the stock
holders THE first one that has been called since its
organzatioa) and a report and protest were made
by it against my action. l presented a statement
showing how the whole half million had been paid
out and stated the fact that each stakeholder had
received back his original investment, and all
matured debts had been paid, and that the recent
act of Congress provided the money required for the
further prosecution of the work. About 200
shares Of stock were represented, and resolution
vas adopted, by vote of over $500 shares against
$50 shares fully indorsing and ratifyng my action
pespectfuly JAS. B. EADS.
Ne,r- York Julv o. 1873.