New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-02-05
WESTERN UNION RAILROAD.
An EXCAVATION OF Tue CAUSES Oh It's RECENT
DEFAULT.

Az EXPLANATION OF Tue CAUSES Oh us REtLNI
DEFAULT
To the Edttor Of The TrtbuRe.
SIR: Some misconceptions and much mis-
representation have out OF the iul IN the pay
neus Of the coupons February On the bonds OF
the Western Union Railroad Company. The stock Of that
COMPANY il owned about equal parts by The Cit' Of
Glasgow Bank and associates ana the Chicago Mnwau-
iee and IT. Paul Railway COmp.ny-a small PrepOnder
,uc. hy the latter company. The bonded Indebtedness
In all $3JOOOOO) is mostly held by tie City Of
Glasgow Bans or their representatives, only
anont 100000 being neld in this country.
Tine road has neen aged under mutual understand
,g betweeu the owncrs 10y Alexander Mitchell and h,
assoc ate directors an entirely independent company
and in 10 way associated IN its accounts or finances win
the Chicago, Milwaukee AID 81. Paul Company.
The raInngs the road for the last few (u not
beorl save beeu barely ADEQUATE to cover the Interest
On the bonds bur a considerable hDdtlug debt,
Incurred in reconstructIng and equipping the
ruaL which was in worn-out and m 50
Il .apidaed condition when AIKEN hold OF b. Mr. Nit
rnrI has each year absorbed the net eaInhgs so
that az every TcrOd Wien the coupons feh due' tie +
d rmcnl ha4 been made With money advhucrd
by Mr.. Mcucll his bank IN Milwaukee
vuhult security. In tunes past Mr. NJ chvu Il ; Irt
SAFE III making th'se advances as he had behind aIn
two Responsible owners TO whom he roI'd LOOK 10 case
the railroad company should nnaly IAN 10 reimburse
him. 49, c. , c, rA o.. g.,
port part the security "aN taken away 1bu upon
The maturity the coupon on IN" first IN
IL a question OF serious import
Uhrth, such advance could be made again safely. as
the Chicago. Milwaukee and ST. PAU Comp nv
were unwilling guarantee the whole, and thereby
assume The payment - nteres- tue whole $1,000,
600 a burden which s1Ond, IN equity, De rHarrd
by tne owners IN proportion 10 Their In
t-r,-t. At the same time the account OF tnr
railroad COMPANY considerably ovCrirdwu with
tnr b.uF and large balance due to the CheH-O
Milwaukee and -. Pau Company IL would seem thdi
uudcr these circumstances II wOuld have bcru JUL
/ rinti, ON the part OF Mr. Thompson he so
| r,,l.d agent OF the foreign b0ndhoidrr>, may
han ,uiholfyadl To have proposed 20 withhold The
,f,, rra.'nte1 by him m which case the floating
coupons would have been paid and the default AT least
uo.tpoucd A.. However, the 10 Gnrut OF lhc whole
amount WIS demanded, and am informed, protested
TOR nou-payeut there -remS to oe No way our of the
embarrassment short Of foreclosure and sale under the
n.uitgagr. . -,
| road forms an important part OF the lines Of
| the Chicago, Milwaukee ami -. PAM hiil-
| vav COMPANY, | hrg TO ,aY that not one dol OF
rou,tluy hold, iu tnr West ID Uuln Road, and tLat
only through the udicious man. cement 0i Mr. Mitchell
and Ia, associate. ana TIE branches nit ana tOhllHu-
f,d "a reed by the Chicago Milwaukee ana ~ Idu
( Gonp,uy could the Western Union Company pe n. u
1 ,a nd or any part of toe ac,IWng lIttfcst
htve been earned and without tar continued
support the road must r. ape INTO the condition
If "A nuu|utcItst y .NIrg conc ru. neg further 10
! -tatp that tue Chicago. Milwaukee ard 81 PAM
Western UuiOu Company ANA a" ln no way responsible
! T., sid company OF IUr duS oI H. indebtedness.
| JTIU- NAD-N ORTIZ,
weep President Chicago. Milwaukee and 81 Pau Rail
| way Company.
| Ma 0yI., lcN. =, lNti.