New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-01-05

| Finance Company n
meet ITS indebtedness, 4 was bankrupt II market
had been found for this stock at ton cents on the
half OF dollars Without any assets Of snT ho9
to have met such Indebtedness.
Such IS tho outcome Of those contracts which may
be said to 10 his0rc shows that the corporation
and the individuals who arc supposed 70 have gtte
cops Io ssSpsa aaf s yesns
bankruptcy in fulfilling their contracts.
,ts is equally true Of this contract as said bsGr.
i'' charles iSsSss tho contract co That iss
1866 to 1881 and in the other from 1859 to 1871 a.er
from twelve to fifteen years OF anxiety and cmbarrass
Of debt without any present. means Of iquSsDs IN
times OF bankruptcy disaster, the stockholders Of
@ s sS%pa%y aa wors snd as %
views are expressed In their acts have ndnbtabIe
this corporation in ia7i Two years afer The Central
| Pacific Railroad Company had been completed and
WHEN other roads had been consolidated with the aided
roads when the Central Pacific, by consolidation was
tho owner In addition to the road between Ogden and
Of the OAKLAND and Alameda ferries Of several hundred
es o. tine no, Sa o 0'so aDd OF rho
line OF the Central Pacific at Lafhrop TO Goshen va
find that the oek s w ~ M onn ana sn W.
ford at twelve cents the dollar, and was Sold not
for cash. bnt on a long credit
Now the stock belonging 10 the Contract and Finance
Company, twenythrec millions, sold at th. time at
12 cents on tho dollar. two years after 4 had com
pIecd its contract would not have sulced 10 pay IT,
debt OF three and half millions and the two years
asr shs ss h and e Years s N n:
o. the road The were rompee,d to return to
cause they could not paw for H. II was not IN their
estimation for their interest to cndeavor to borrow
0n cents ana on Se n, ' d even With s au
patton OF the dividend Of per cent, which was de-
clared on september 10, 1874. -. ,u.
these gentlemen had put higher estimate on the stock
Ds ens IN hs s Uy Scsh BY s1bad and o
and In the suit brought by Brannan for which II IL
Tho settlement with those represented In the Lambari
suit was agreed upon In the year 1870 shortly after The
tho stock of Brannan the same time. Icy reason Of
litigation that prevented settlement, II was not paid
The plaintiffs in those suits stockholders In
the Central Pacific, and undoubtedly had right to
the interests OF the directors the Central Pacific
that It was not then made That II not because
financial embarrassment, to render account. They
had but one thing TO conceal at that time not their
performance Of their duties directors trustees
but In view Of thcir great indebtedness at that time.
tho current belief that ont of the twenty seven millions
n o% OF % naa Of % s %
Missouri: said, "were not worth a cent without
by first 0 % a
the aid granted by the counties along rs main limo
fortunes. And It was this popular deluslon that
them credit. and permitted them without security to
Hoat and carry the many millions which they
books to complaining stockholders. It would
have then Ssa to their creditors to meet
the indebtedness they had been compelled TO incur
eeeds Of their bonds and of the bonds In aid Of
stock Of the Central I witch hey could not SELL
to realize the. amount OF snch indebtedness smcb
therefore It was wisdom on their part to incur further
indebtedness for the money required TO settle the de-
mands of these stockholders.
But, certainly, the Government Is In no condition 10
complain OF these contracts or OF the stock that was
u m hS as a As we @ has
road security for the debt due to T. If there any
tract OF 1864 1t has had the Of the road and has
already saved by 's completion up to The present time
the discharge Of Ern,pa, and interest at the time q
an existing corporation 1t enlisted ifs aid for the
pcrformancs Of naio1 nal undeStsns Their was
taking the property OF the corporation would be owned
OF the enabled sell but little stock Most
them The few who came IN f to h p1" Sm who
faltered By tho and who ready to lay down
when the road finished with the exception OF tho
stock owned by Lambard and Others, much OF which,
bring dollar into the Golfers of the corporation The
promoters and directors Of the company were III,
Of stock Illegally issued nor single shar, for which
the corporation did not receive fill commercial valno
at the time IL issued.
But 1t may be further said. that these mon. being
tho of all the stock. and such. the owners
no difference 10 any one whether the symbol Of their
ownership was expressed by the issue Of certificates
shares. or for million. Those who dealt with them
ne oM no ' S as r YOU'D and S
much each share was worth. So We find. under this
certain number OF shares OF the par value Of on.
thousand dollars each but. by tho amendment of 1854
ono hundred dollars each instead OF thousand and
that the shares should he ono million In number. In
stead of one hundred thousand.
The number of shares of stock issued by a corpora
ton. with the sanction of those who its owners,
thousand acres of land. and desired TO have the
@ . 10 5 y Of by deed c bo a
But as was said BY Mr. Justice Miller in Tho United
Z. s.. 500
III {. difficult to SEQ any RICH, which tho Govern
meDt has a creditor, to Interfere Letwccn the
pOraiion and those with whom II deals. II has teen
ea,enl to look out for Itself In ne making OF mo
made rs contract and barcaIned for rs sccnriiy IL
had first lien the road by the original Act OF
Incorporation which would have made its len safe
struction of tho road, end more important TO the
Government than any one else, and stu more I'M
portant to the people whom It represented II post.
poncd this lien TO another mortgage that means m.lt
be raised to complete IT,,
by tho number of shares of stock ISSUED. The cpr-
poratorS entitled to all the surplus earnings II
The company, and Whether IS divided into ten; ono
hnndred thousand parts certainly docs no ha N
to the creditors; who do not share in the distribution.
Eut II II should DC found. that after allowing tho
equities claimed by the Central Pacific. concern
Ing which Congress has directed the Commission
10 examine and report. that material sum T. -
to the Government. and II should pay or the orig nai
lien and become the owner ~ Tho property the stock
not being entitled TO its projection. would In no way
determine or interfere with is right to the owncish
of the property.
TIE PURCHASE AND BUILDING OF ROADS CON
SOLIDATED WITH THE CENTRAL PACIFIC
Tho Central Pacific, with the assent Of Congress,
assigned its right to construct all that portion OF the
aided road from the City OF san Jose the city OF
Sacramento; but the assgnecs unable 10 perform
the work. and after there had been several fa, res
OF contractors the promoters OF the Central Pacific
ranged with the asgnees turn tho organization
TO them, and they finished and eqmIpped the roal In