The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-10-16

"The Central Pacific actually received
less than $3.50, 900 in cash and bonds on
account OF stock subscribed, while it
Issued stock to the amount OF $54, 000,-
1850. e6 miles) were built for $40, 900, 900,
for which bonds and stock were issued
by Messrs. Leland Stanford. Coils
Huntington, Mark Hopkins and Charles
Crocker, or under their direction, as
follows:
Bonds. ................ ......$ 7o2lI6so
Stock. .......................... 54,ooo,ooo
Total issue of bonds and stock. .$l24,211 $3.50
Cost OF construction. .............. 4o,00o.OO0
Fictitious capital. s4,211 $50
1.-THE bonds. reduced to q gold basis,
yielded $52. 708, ZAP. 56. So that the four
men who managed that company prof
tied to the extent of over $4,000. 900 in
addition to $52,000,000 OF the stock,
which they divided among themselves
and subsequently, sold st high figures,
after declaring to the amount of $751;
453,G70." opp. 1881.
'The Sioux City and Pacific capital
lied Its road COLT miles) in bonds and
stock to the amount of $5,047 ,720, az
follows:
First mortgage bonds. ST. ,62S, 900 90
United states bonds. ...........' 1,62S,32O 90
Common STOCK. 1,T9l 400 90
Total. .......:... ..'..... SO ,047,720 90
Cost OF construction. ........,.... 1000, 900 90
Profit in bonds. ...............$2, AZTEC 90
ut (this company distributed among
its Stockholders, without consideration,
over 50, 900, of which 81 .62S 900 was
in first mortgage bonds and the remain.
der in government bonds. Every stock
holder who paid in $40 received in re-
turn about $120 in securities and prop.
erty." Up. 1897.
1.-THE Central Branch company re-
ceived 1886, 700 on account CT stock Issue
of one million. This road Goo miles)
WAS built for $2.731. 347.2S, for which
bonds and stocks were issued as follows !:
First mortgage bonds. 81. 600. 900 90
United States bonds. l,600. GOO 90
BLOCK. ................. t,OOU,UUO 70
Total. .S4, 200, 600 90
Cost OF construction. ........... 2,73l, 347 %
Fictitious capital ...........$1 .469.652 II
''Of the first mortgage bonds, $780,
600 was used for purposes that no one
has been able to explain; $500 900 more
in these bonds was given away as bonus
to stock holders for stock subscriptions.
1T will be apparent from these figures
that the roads q. o. the Pacific railroads
generality were bonded and stocked on
an excessive basic, the profits amounts
ing to s172.347,1l5 going to construction
companies or inside combinations"
STOCK ILLEGALLY ISSUED.
From the above history Of the meth
DDS OF construction pursued by the man
ayers of the Pacific railroads, it appears
that, except in the case Of one OF the
smaller roads, all the stock OF the COM
panies was appropriated by the direc-
tors, under the construction contracts
referred to. aud that besides other proftB,
the stock thus received was in oil cases
clear profit. This was obviously in con-
travention OF the second section OF the
act OF July Q, 1864, by the provisions of
which money only was to be received
ior any such assessment, or as eQuiva-
lent Tor any portion OF the capital stock
authorized.
The commission reports that this OBJ.
legation has not been kept by any OF the
bond-aided railroad companies.
The capital stock of the Union Pa
cine Railway company now oustandin q
10 sou, 66S 800. On this amount not more
than Ii per cont has been received in
cash.
The stock of the Kansas Pacific Rail.
road company. before consolidation. was
$9.6s7 300 Oh this amount no part was
issued for each.
The capital stock Of the Western