The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-09-01


interest on the whole Issue from the start which
will not be the case, u would sti only amount TO
S67o 000 equal to Is 40 per cent 90 the aelsa cost
claim that 10 excessive return upon our In
vcstment Iis moderate ono when you consider
the magnitude OF It's attendant risks. fhs HERALD
itself pointed out In many articles that the men WHO
would build such road would make at ieas. twenty
per cent. OF course alter tho decision OF the Court
smooth sailing although tnsn IL was all venture
whether it would eventually pay or not, and some OF
makng too much money refused 10 90 into the en-
terprsc they thought II was toe areata rsx
tore ,cc decision Of The Court Of Appeals really
about as venturesOmo ~ II we'll could ne We had
SssSa 10 ou 10 Al the sa enemies ,aps
transit told at that time that tho decision OF tho
Sssn we should have lost a. oas, Now was
all this risk and anxiety worth nothingl we shall
make money because We n.d conndsnSs 10 rapaa
our capital In the enterprise. UHdsr such risks an
ordinary Of say seven eight per cent weuld
be most unjust and inadequate. There are no CAPT
tnsts In the world who would have taken such risks
for the probability oil such small returns, which they
II was the capitalists Of the New York Loan aud I'M
provsmspt Company. who furnished the money for
building Tho road wero only induced TO 60 int tho
enterprise after prosraeied negotiations and
dlscussiops-thO venture was so great The press
US that we should make a vast amount Of moncy-at
least twenty per cent-and now before We have sold
Or received :o ". scs
sYou say, Mr. Navarro, that II all the bonds issued
pay interest you Will only receieve l3 or IL per cent
How about the stockf1
"rhe stock cannot pay dividends for years to come
II It ever pays any at all; Tor, while our road TO the
,bs Entire road ABOVE he PARK Tns. Of
our line represents Investment of 81, 500 900, on
which do not expect dollar Of return tor many
| years TO come" st4mf raass
NOT MAKING TOO MUCH HONEY.
Here Mr.. Funsto Mora, associate OF Mr.. Navarro
and large shareholder in the enterprise broke In
| impulsiveIy upon the conversation.
xuVS uC fall
to-day and buy the shares Of the New York Loan
and Improvement Co%papyG .hs, carry al these
| tionately with thsm--tor $3.50. These shares we're
subscribed to At par Tor $780, and they have now
man in any kind OF risky aud vsnturesome specula-
ton consider i such fabulous prod. 70 receive for
anxiety aud risk, 81, 5oc-,hat is, to make $500 oy
| the operation 2" t
can show you a receipt for some shares which
bought enly yesterday at that bgurs.'' Mr. Navarro
ns Is. Sa h ~
snares bought was quite plainly marked $50"
QUESTION OF FARES.
ssBut 10 ia said, Mr. Navarro, that the immense
bonded Indebtedness OF the road viii compel you to
charge high fares''
sour fares are fixed by law and cannot exceed
them Bus know that 1t rs claimed should charge
Only Ave cents nj all hours. To that demand would
reply that have talked the matter very
| July In the company, and we all have come
usicn That ave cents would mol pay the running
hovs-lnat II would leave us absolutely without a
dollars return for tho enormous amount Of capital
we have invested Just iooh ~ Tor moment. rne
| all as compared 10 our costly and handsome
road, charge ten cents, and the horse cars
which certainly do not represent one.nnh of
| our stment-chargc nve cents I think
that any body VINO rides In sumptuous oars in
| twenty minutes from Rector street TO the Park will
ADMIT that the serves rs worth ten csnta Even
| the horse the ride, which would take hour
would cost him ten cents unless he chose rosSaik 10
the sixth cars instead OF taking tbss Ghurcb
street cars. These lutte one.horse street,
distance Of barely tnrcsquartsrs of mile sotuaIy
| charge hvc cents and nobody gfumbea honestly
ossvs s o.
| means Of locomotion IN the city, considering, OF
course the great saving Of time and the superior COM
| tort and luxury Of the travel You may assured
that i've fares had been required BY char.
tor the would never have been built at ALL No
| capitalist wouid have zone into t. And II now I'VE
cent fares be exaoted rapid would be
at sandstl at once and not another dollar would be
| by our charter to build any road in
order 20 preserve our rights In what ws have
that no omission 10 construct any portion snail
work forfeiture TO this franchise In respect any
ton which may have been commenced or completed.
| The HERALD, IN Its very able leading editorial the
other day said-Thcy (the peoplc) have gwen, free
valuable franchises IN the world. II they had pre-.
sonted the Metropolitan road with the richest gold
mine on this continent they would not have benentsd
then mucli' And In the same article ths HERALD
| says:-"And they tine company may a we'll make
W. their mind that five cents is as high fare as the
not yield enough revenue to pay fair dividend on
the legitimate cost of the road Now most re-
| tween fair dividend aud the richest gold mine
ON this coutipept' Five INT fares would give
ayaeua az al" While ton res sSi Hefc N.Y.
| Navarro smiled) aw sorry to say, fail to give
the richest g''d nine Oh This continent mont,
have thought thirteen or fourteen per cent. 1 am
| AFRAID, very snail return Tor their monsy-yes,
twenty per cent Ten cent lares Will only give
u moderately fair return our venture, and for
the rest tMr. Navarros quiet smile deepened) II is
the public, we hope that has found the gold mine IN
IT'S saving OF aud gain comfort. We salts
fed with a 'ialr return on our money"
'But Mr. Navarro, II has been stated that you have
slrsaoy bonded the for extent Of twenty
miles, while you have only Two miles ruunings''
CORRECTING 'GRAvE ERRoR. >"
Mr. Navarro again smiled. "rhat statement" no
replied, with careful celebration, IL only adiy
cnarac.erlze as grave error as mos serious mis-
circulated by enemies In order best aud
most s1ciont fr,ends, ike the HERALD, shall b. M
sran.i. be nampsred IL is wholly untrue ,ha, ave wo
hsve issued bonds for the whole extent OF the road.
actually butt and operated, aud th,s With
TO raise the crpita tor continuing our line As rapidly
are not long enough 70 buJd these twenty miles OF
road with our own spare cash. We have 10 raise
money to nnisn the line and this ~ just what
Going by the issue OF these honda wtbous
tho Of these bonds RAPID transit the SIDE
would be stopped for the present at the Park. II
for the OF rapid transit vol
for own. speak irahkiy about these matters,
because everything In this company Is open end
above board. There 10 nothing secret. mysterious,
fraudulent dishonest about u, mics have
boen trying TO mako tho press and pubic believe"
"cgEpIT MOBLIgR" CHARGES
"wbat about the alleged Credit Mobilier opera
tions9"
Mr.. Navarro burst INFO hearty at OF laughter.
'rhis talk ABOUT Credit Moblier very funny Why,
OF course, tnis IL Credit Mobnisr. TINS 10 a com.
pany authorized 10 iurnssh companies or promoters
who have money tho funds wnercwith 10 build
public works and 10 reimburse themselves
In tho securities issued on those works
That 10 the Credit Mobilier IN France
was II was perfectly honest, honorable
plan, and Is only by the swindc OF the Union Pacific
Credit Mo5ier that the has become almost ~
non nous with ,hievery But that bailt worry
differently from our. People don't generally know
why the Ci edit Mobilier ade itself odiou 1t was
ths-that Of the trustees of the Union Pacific
Railroad, their individual usive 10 Ut cd
the Construction Company and made tho contracts
with the railroad over which they appcned to have
control aud absorbed all the proht leaving tho stock
hoIders VINO had paid cash, Win stock reduced
to a market value OF about twenty Dor cent IL they