Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1883-12-02

LC 4NSNhhb anu SACkOh AhhiOsA 80 |
a narrow gauge line commencing at
ReIo. Nevada, and originally intended
20 be extended northward into Oregon.
It was built for distance of thirty
miles over very rough country when,
the company becoming Involved, work
was stopped. The company. at date 81
its last annual report, owned neither en-
CINE or cars, had issued $4,000 in
bonds. of which $4,000 had been sold.
Its floating debt. the report stated, was
$4,000. In the three months, from
October 2ud to December 3lst, ls-2, Il
received for transportation and freigh:
$2,1.3. The President OK the road, IN
conformity with the laws OF Nevada,
filed sworn statement of lis Condition
and business for the year 1872. The re-
por. was filed February lst, l-53. 1t Is
a sonexhat unique and remark
able document. The closing paragraphs
are especially interesting. After stating
the material facts, above noted, Presl
dent Balch concluded his repor. as fol
lows:
"IE consequence Of the chronic iIpe-
curiosity OF the corporation it has not
had enough funds to comply with the
laws OF the State in relation TO the
keeping of account books az reqired by
Law, as the officers have received no
compensation since they we're connected
with the company, bat have been com
PEELED to find themselves and work for
nothing. No dividend has ever been de
clared by this accursed corporation, and
ii is safe to bet none ever will be. The
corporation owns no tOuses or shops OF
any kind in this State. The company
owns no oars or engines-those on the
road are owned By private parties. The
net profits of this road have been moth
ing, as the corporation was conceived
in iniquity and born in fraud. Every
honest friend of the enterprise has been
swindled and robbed, and disaster has
oyertaken all persons who have been
connected with il in any capacity"
The latest development in the history
of this much tortured and most unfo.-
tunate railroad corporation is given If
tho Reno New Gazette, from which
we quote: when the company failed
to pay the interest due on the bonds
taken by Moran Brothers, of New York,
amounting to $4,000, they selected
General X. NJ. Clarke as their attorney,
and directed him to bring suit to fore
close the bonds and sell tho road. They
had become impressed with the insane
belief that capitalists all over the coun-
try were waiting for chance to grab
the road at any price, and they were
astonished to learn that there would he
no bidders but themselves at the sale.
They postponed it couple of months
and began to investigate. They found
that the Central Pacific did not want it,
and ID. q. Mills would not touch il with
a tenfOot pole, to use n poetieal phrase.
They don't like to have it sold with no
one to bid on it but themselves. because
if they buy it they will have to blow in
a lot more money. They can pay part
in bonds, but not all, and will have to
pay $4,000 or $4,000 in cash for ex-
penses and to secure the bonds issued
to Nevada creditors of the company.
Then when they get the road on their
hands thew will have to build more in
order to make it ray expenses. The
hardest work is done. and for fifty miles
1t can DO graded for 800 mile, but
they are not in that business, and don't
want to 60 into it. The upshot of the
matter may be that they will 20 in Oh Il
new deal and let q company organize
and take the road, issuing preferred
stock to satisfy debts, and new bonds to
take up the old ones. Then money
cou!d be raised to continue the road"
There are probably but few railroads
i'll the United States which are altogether
Improbable. John Mackey's brother
in-law, Count Telfener, has one run
ming down in Mexico which is said to
have cost the bonanza magnate good
round sum and to DO Il pretty large
sized elephant, but it is safe to assume
that TO railroad corporation ever had.
OF ever will have, quite such i series OF
attendant frauds and m!shaps as that
which drew forth from its president,
who lad large sum personally IL
vested SO concise and undoubtedly
truthful 4 statement OF its affairs