The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1880-08-10
From the Bellaire Tribune. 9Th inst.
Bellaire and Southwestern.

VI bne 1IlOuu6.
s. L. Mooney, Esq, Pres. B & 8. W. Railway.
As my inquiries through the Tribune
some two or three weeks since, in regard
to the financial condition of your CON-
panv, and the plans for relieving it from
lis floating debt, do not seem to have
drawn your attention. I beg the privi-
lege, by special address, of asking you
to satisfy the stockholders, upon the
subject broached in that communication,
as well as 70 the inquiries included in
this.
1t NAV be best to recapitulate enough
of the former article to give continu-
Gus understanding of the case. In your
communication to the stockholders on
the Sth OF April last, you report net
proceeds of $3.50 900 of Trust mortgage
Bonds at $202, ,557 OF equal to Sl.02 per
cent. Of their par value What became
of $4,000 additional. understood to be
issued and sold ? You also made at
that time, the floating debt Of the CON-
pany to be 5000 less $4,000 uncol-
lected stock and real estate 10 be sold
making a balance of $4,000 If that
amount only be made up, what is to be
done with the excess of $4,000 not
covered by the proposed syndicate2
1t is reported that of the uncollected
stock there was "a 900 taken at Woods
field, of which 10 per cent or $400 have
been collected although the parties are
in the habit Of voting themselves into
the Directory by the aid Of the Whole
amount of stock standing to their credit
on the stock books of the company
Are these allegations truep
1t is suggested that the policy Of the
managers Of the Road has been rather
to repress facts than to publish fully the
operations of the Road, 80 as to induce
the greater willingness on the part oI
the general stockholders to relenquish
their stock as a free gift or for nominal
consideration, to those who shall be pub
lie spirited enough to raise the amount
of money necessary to pay off the float
ing debt, and thus save the stockholders
from the liability OF sale of the road
and an assessment upon them of the full
penalty of the law, viz: Double the
amount of their stock. These ideas
seem to be sustained by the conditions
affixed to the proposed obligations OF
Syndicate:
First. That the company shall bind
itself to pay with 8 per cent. interest
the $50, 900 by the 1st Of October, 1881,
and in case of failure to do 80, the mem
bers of the Syndicate, having secured
mortgage bonds deposited with them as
collateral security. at Is per cent. ol
their par value, may sell the same a
public auction, at whatsoever they viii
bring.
Secondly. That the general stockh oil
ders shall donate to the members Of tht
syndicate S1OO, 900 of stock as a bonu
to compensate them for their "public
spirit"
| Now, If the Syndicate is protected
against the liabilities of any loss fol
their advances. in the right to sell tn,
second mortgage bonds. for whatsoevel
they will bring at public auction, where
is the sacrifice7 Where is the "pubIit
spirit ?" II besi,Ies this they arctic have
Three and one third dollars in stock fol
every dollar they have loaned the com
psny, with the certainty OF repayment
who is it that pays the floating debt fo1
which this syndicate is so ostentatious
ly gotten up1 Not the members Of TIL
syndicate, but the general stockholdef
who after releasing their stock will hav'
no further direct interest in the road!-
Will you please tell us, Mr.. Mooney
whether, in the history of railroad
frauds, you ever knew of 80 bare-facet
trick as this to get control Of voad
But the stockholders outside Of thi,
syndicate ring are told that, If this il
not agreed to they will suffer the sale o
the road and the 100 per cent. assess
ment to which thev are liable under th'
law Is this true ? If the stock Is SIS3
600 and the floating debt can be com
promised by the payment OF $30,00t
cash, can the per centsee of assessmen
exceed II per cent. or $17 90 on every
800 of stock owned? This will he op
erative on those who proprose to form
the Syndicate, as we'll as the genera
stock holders, and is not that, MI
Mooney, ,ohere the shoe pinehcss
| You told US in April that the road wa
then earning $50 per day equal to S2S,
OS0 per annum, gross. How much ar
the earnings Dov1 lis reported tha
the earnings have sometimes gone a
bigh as $1,000 per week. Will you ne
please inform Us, so that we can jude
OF the propriety Of giving our stock t
! the Syndicate? If the stock is as WORT
less as they would make it out, do the
ask the donation of it merely as con
lplimentr ENQUIRER.