The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-06-15


Total. ACKNOWLEDGEMENTS $50 900
The interest on the first mortgage bonds for three
years from the date of ISSUE has been deposited with
the Comptroller so that the interest about nine
millions Of dollars this year. has to be provided for
by the company Six per cent interest the stock aud
per cent the bonds issued and floating debt
make aggregate of S562 600. To poy this amoua at
the aggregate receipts must be at least $1,l64 Oos
upon the favorable calculation that but fifty per of
the earnings required for running expenses
pairs 1t is, however impression that the running
expenses and repairs of the Erie railroad will
full sixty per cent of the gross receipts and if so
income for lsi9 must reach the sum Of 81 $780, 900.
This is immense amount and will no doubt stasHe
and alarm those who have depended upon regular
payment of the interest upon the liabilities of the
pany; but time and not very long time either, will
show the truth and correctness Of calculations
1t will be rccolectcd that several months since
made statements somewhat similar to these and
the time which has since elapsed has strengthened
in the opinions then expressed The company have
had nearly six months business the extension road
and of their estimates have been realize1 and
we have good data for Gale ulations the CON-
pany any set of spectators, and wish to place
them side by SIDE for future reference and comparison
Since last statement relative to the affairs OF this
company official report has been made by the Board
DIRECTORS,
columns, without comment, feeling disposed to afford
the company the facilities for giving publicity
to its own estimates, &c as we're used in making
public This has enabled those interested
to judge more correctly for themselves and will also
give them opportunity to who has been the most
correct in their statements, Those interested will no
doubt be somewhat alarmed upon being informed that
there not the slightest probability of the
al interest ON the stock due the 1st of January
next being paid out of the earnings of the road We
do not mean to say that the next January dividend
will not be paid, the credit of the company is not
completely exhausted and long it issue bonds
the interest will be regularly paid that is if the CON-
pany can find purchasers a. any reasonable discount
The management may deem it prudent, in considera-
ton OF the immense cost of the road thus far and in
the absence OF suhcient income from its earnings to
stop for time paying interest," and the extension
to some more important point on the line.
The issue of the second mortgage bonds is going on
rapidly Gone and half millions Of the four being al
ready in the market) When the whole these bonds
is in the market the total Indebtedness this compa
ny will amount to fifteen millions Of dollars, the inte
rest which will amount annually to S947 000 to pay
which, the gross earnings must reach the immense
GS2,37O,OOO. The dividend to be paid on the stock
the LIST of July proximo, must be drawn almost en-
rey from the capital of the company, and will the
interest due the 1st Of November next the bonds
and floating debt. This cannot be sustained and the
best policy for the company to pursue under the cir
cumstances is to omit Of the semi annual pay
ments Of interest the stock If that does not an
swer-if the earnings will not pay one dividend
of three per cent in the year, then drop the whole aud
let the stock take Of itself The bends and float
ing debt must be taken and the interest prompt
ly paid, the company must be declared bankrupt
and suspend AS for its bankruptcy that occurred q
long time ago. but the company has been able by in
creasng its liabilities, to meet its payments. This
however, is not to the purpose object at present is
to show that the interest dividends the stock
cannot be paid any longer, without adding largely to
the of construction and materially rearding the
completion of the work. At present prices, dividend
Of three per cent per annum, makes the stock five
per cent investments and large portion of it has
not cost holders much above the current price,
would be very much injured and the finances Of the
company would be much improved We recommend
this to the serious consideration of the management
with the firm conviction that nothing else will save
the company from explosion that will depreciae its
securities fifty per cent from present prices.