The Railroad Question: A historical and practical treatise on railroads, and remedies for their abusesLarrabee, William
History
The Railroad Question: A historical and practical treatise on railroads, and remedies for their abuses
Larrabee, William
Railroads; Railroads -- United States; Railroads and state -- United States
The directors under their lease were entitled to
the remaining $75,000.
The service of the company was as bad as it was expensive; its trains
were slow and irregular, and its employes arrogant. The syndicate which
controlled the company defied its stockholders, the public and the
courts alike. When one of the stockholders, a Trenton merchant by the
name of Hagar, applied to the courts for an order to compel the
directors to produce their books and render an account, the syndicate
bought Mr. Hagar's shares, for which he had paid $125 a share, at the
price of $1,456 a share. The suit was then withdrawn and the matter
hushed up.
In 1848 a number of articles appeared in a paper published at
Burlington, Pa., which were signed by "A Citizen of Burlington" and
contained much surprising information concerning the Camden and Amboy
Transportation Company. It was charged that the directors had defrauded
both the State and the company's stockholders of large sums of money,
that they had grossly violated their charter by charging illegal and
extortionate rates, oppressive to both commerce and travel. It was shown
that while the average rate per ton per mile of thirty-five neighboring
roads was 2.85 cents, that of the Camden and Amboy Company was 4.54
cents. It was also shown that neither the stockholders nor the State had
received the share of the company's revenues to which they were
entitled. These articles were extensively reprinted and caused a great
commotion wherever they appeared. After the first storm had subsided the
directors issued an address to the people of New Jersey, in which they
bitterly complained of the people's loss of confidence in their
integrity, and declared that the charges preferred against them were
founded on falsehoods.
Public-domain text, read in full here on John Shaqi.
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