The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-03-03
Regulating Railroad Leases.

A decided hutter has been created In Wall
street recently, among the holders Of leased
railroad stocks, by threats Of reputation
made on behalf Of their lessecs. The shares Of
the United Companies Of New Jersey Of the
Pittsburgh Fort Wayne and Chicago Rail-
road Company, and of the Cleveland aud
Pittsburgh Railroad Company, all leased to
the Pennsylvania Railroad Company, have
lost, in consequence Of these threats, from
ten to thirty per cent in market value. The
shares Of the Morris and Essex Railroad
Company, the property of which is leased
to the Delaware, Lackawanna and Western
Railroad Company, have likewise fallen,
from apprehensions excited in similar
manner, about one-third. considerable
depreciation Of the same nature is also
noted in the shares Of the lines leased to the
Delaware and Hudson Canal Company. All
these leases We're made in the flush times Of
the war, and now that they have proved
sources of loss instead Of profit as was ex-
pccted, some of the men interested in get
Ting rid OF them declare their purpose 10 do
30 by any means in their power.
The alarming feature of the matter is the
way in which it is discussed by what are re-
garded in Wall street as respectable people.
One OF the directors Of the Delaware and
Hudson Canal Company, for instance, re-
Gently said to q friend of ours, who holds
stock Of the United Companies Of New Jer-
sey, leased by the Pennsylvania Railroad
Company at a rental Of ten per cent. per
annum, and on which the lessee last year
lost 81 100000. You have got to take less
rent. Ten per cent. is too much. You must
"a IL Il. 4.
served to him that bargain was bargain
and ought to be adhered to, but he would
not recognize the argument. The explana-
ton was that he was DESTROYS of reducing
the rentals paid by his own company for its
Improbable lines, and would like to be coun-
tenanced by the example Of other corpora
tons similarly situated. Some OF the large
stockholders Of the Pennsylvania Company
did. In fact, not long ago, begin legal pro-
ceedings TO annul the lease OF the New Jer-
sey lines, and though they met temporary
check in court, 1t is reported that they have
not given up the undertaking. II Is to the
credit OF the officers Of the Delaware Lack
awanna and Western Railroad Company
that they steadfastly declare their inten-
ton 70 keep their agreement with the Nor
ris and Essex Company at all hazards, not
withstanding it costs them over million a
year more than it brings in. But repuda-
ton is contagious disease, and there is no
telling how long the virtuous resolution Of
Messrs. SLOANE, TAYLOR, and their associ-
ates will hold out.
These hard times are bringing TO light an
amount OF dishonesty in the American peo-
pie which it is painful to witness. II is easy
enough to fulfil contracts SO long as money
is 10 be made by them, but when the tide
turns and goes the other way, then men
like our Delaware and Hudson director show
the stun they are made Of. We, here at the
East, profess to be disguised with the dena-
gogues who advocate reputation Of the
bonds Of the United States because some Of
them were sold at low prices diving the
war; but We have plenty of people among
us worthy OF the same reprobation. The
scoundrelism of Wall street is as great ;
that OF any other part Of the country, and
when We denounce reputation and repudi-
ators in general, we should not omit to APP
ply the lash to the sinners in our own inn
mediate vicinity.