The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-03-01
94,067 10

This is equal to interest OF FIVE and half per cent
the of construction for nearly fifty three miles,
only twenty miles Of which have been used frem
which the above income was derived 1t is estimated
that the net income from the extension for lS47 will be
about one hundred thousand dollars which, with the
increase in the income from the lower part of the road
will swell the net income for the year. to about t.co
hundred thousand dollars equal interest of per
cent two millions of dollars With these prospects,
the stock Of this company is selling in Wall street. at
less than fifty cents the dollar. Those who shrewd
enough purchase this stock present prices and
tire with from the market. WILL at very distant day,
md 1t very valuable and productive investm ent.
At the present moment find the domestic exchanges
against US in every direction the natural
OF an inflated markets and had not this check
taken place, every description of public security would
have centred here. We have made ourselves the prn
cpal holders Of the most doubtful obligations we as
to be the propretors of every worthless concern
this side Of the Atlantic To this mania speculative
expansion indebted for the of the Hudson
River Railroad Company, whence the completion of
railroad to Albany has the promise Of being indefinitely
postponed It is, however stated that there is yet
chance for ree the subscriptions having legal Forces
many Of the subscribers being unwilling to be made the
dupes of artificial movements of this nature will,
doubt give conditional acceptances for the first in.
stament to be binding only when the full amount Of
the first payments shall be collected; in other words
make the payment conditional, and express these
ions upon the face OF the checks given II impossible
to tell how far this of precauon may be neces
sary to those not behind the scenes who have no ad
vances expenses to be quidated but by the public
such exercise of discretion may prove of the hghes
importance, viz the arrest of insane project The
absorption of money by this scheme defeat the compile
ton Of route partially constructed will without doubt
be extremely slow, and should the expenditures be
spread extended series Of years. the losses
will occsson will prove more personal than public sacri
fees, except far its deIeterious influences may
retad the progress of the interior route If the mainte
nance of this mammoth scheme was all we had to en-
dure, might bear the burden easily, but when
the resources of the banks composed of the aggregate
capitals of individuals, and those principally Of
business, employed in bosterng up stocks of compa
MES foreign to State the burden becomes
duce us 10 submit willingly.
The policy of the banks is to make loans on fancy
stocks, 1t would neither be legal pruden', but they
will loan other stocks and grant facilities TO iavorite
directors and particular customers for the purpose
purchasing stock securities A a specimen of the ma ny
speculaons in which New York funds are constantly
engaged is only necessary to present for examination
the affairs Of the Norw ich and Worcester Railroad
Company, from which estimate may be formed of
the propaDe iae Oh mo HUDSON River Railroad Gonna
NY and the value of the investment about which so
much has be said, to the stockholders.
The capitalists OF this city intere s,ed In this com
pany to the amount Of thirteen thousand out of sxts
thousand five hundred and fifty shares and Of the debts
about five hundred thousand dollars being about four.
hiths oil the whole concern The balance of the stock
has been hypothecated for the security of the large
loans, four thousand shares to the State Of Massach
one thousand to the city Of Norwich, and four
hundred and fifty to Jacob Little & Company TO
protect short loan made under peculiar and pressing
circumstances The accounts Of this company the
18th of December, 1885, exhibited the following condi
ton OF the concern. he of the road exclusive OIL
bonds for Steamers was $2,i70 400, the proceeds o.
10 635 shares Of the capital stock and loans upon bonds
OF SOC s57 the outlay exclusive of 600 for the ex
tent on locomotive add twenty freight cars not yet
paid for To this sum be added $500 900 for the
purchase Of the Cleopatra and Worcester and the con
struc on Of the Atlantic. payable bonds OF the CON-
pany at two three and five years. from July, 1915 ma
king gross indebtedness Of 81 $751; OF which the
liens of the state OF Massachusetts and the city Of
Norwich cover 100000
lis very easy see, from this state nent the eXt,n
of our pre IN this pany AMI what must
be the position of those interested should there 70
danger of insolvency. Should the company fail to honor
its obligations at maturity, the stockholders must
either submit to total loss make further al
vancos, 10 retain possession of the road In the
event Of the claims Of the preferred creditors