The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-12-29

another. There . few more left; but IL may be
one two three, or Ave years before they reach
the point beyond which they cannot 90, and upon
reaching which, they must show their hands and
present their affairs to the stockholders in the true
light There has recently been considerable specula
tion In this stock in the Boston market, and large
quantity has been sold time to deliver, by those
who better acquainted with the business of the
road its income and expenses than others. In rela-
ton to the movements in this stock in the Boston
market, journal Of that city says =
The great feature Of the week the decline In the
Old Colony Railroad On Saturday, December Is, this
stock sold ut IN, co days-en Saturday, December
22, 1t brought but CO, months, The first decline
produced by the fear that the road would pay
dividend in January, and rapidly hurried on by
the announcement: that the directors had really con-
cluded not to declare But the great fall grew out
Of the circulation of certain figures which, though not
exactly cfhcian are generally held to be correct
The stock for the time at even its present
low rates by the purchases Of parties having large
ders on hand and many brokers content with profit
Of eight or ten dollars share, who supply
ing themselves for " shortn sales made time ago.
When these buy satfed the stock must decline
further unless something unforeseen turns in its ia
public in afew hours and the disappointed stockhod
will then look at the details for themselves In
the meantime the following figures obtained from the
president Of the read must be substantially correct
Gross earnings Of the year 1919. S2T5000
running expenses. observation-disclosures. l67 900
Net receipts. sos 900
From this last amount, s2a 500 have been paid for
rent to the South Shore Railroad and Dorchester and
Milton Branch, S2l 600 for interest bonds and
stock and as 600 for interest floating debt now
funded The balance Of is the net earnings Of
spe 81 IN ss. stocs sna sS ooo 1g IN hnna.
The interest the last has been paid above stated,
and the net earnings, $4,000 are nearly two and
one half per cent profit for the year on the capital
stock
The announssaspt that the concern had made but
two and shai yer cent for atwelyemonth was re.
af Wit nd
rot believe that the road had been msmansged or
that they had been 80 completely deceived And now
we have not the slightest disposition to gloss the
fact that have been IA In company with other
folks the slightest intention continue to assert
the above figures gives the following results The pay
rent Of the SIS 600 interest the floating debt
not again that the real profits OF the next
year assuming the aud expenses to be the same
as in 1910, wsuld be s64,6o0. Now theamount OF
profits required to pay six per cent on the capital
stock, is sllT, coo. Consequently, to render the
Old Colony six per cent stock s53, 100 must
be made or saved from future receipts AND ex-
penses And this too, is very close calculation
having regard 20 extraordinary repairs expendi
lures the formation Of a sinking fund or any other
contingency To make the Old Colony good six per
cent stock must make 100000 sos 600
than 1t has done TIE past year-it must in fact, just
double its profits.
At the nua meeting OF the stockholders of the Old
Colony Railroad Company. a committee of FIVE stock.
holders was appointed, and charged with the duty oil
isithfuly and rgdly investigating the affairs Of the
corporation ana OF sscei tanning it's liabilities, well
as its property and their value and produc
tiveness Of investigating the past history and ma
nsgement If the road-the cause of the great ex
penditures of the corporation in fact, tc
make a full report Of every item connected with
the financial and operative management Of the
company. This committee will report at the mex,
meeting, when we shall probably get at q correc,
statement Of the concern. The Boston aud Maine
ltailroad Company has passed through similar inves
tsstion, and came out purged and purified and We
trust the Old Colony Company will be benefited in the
came way The management exhibited some sense in
emitting dividend and perhaps passing three four
more nay place the company in better position
than it has been at any time since it was created. A
few reports from railroad companies similar to
those made by the Norfolk County and Old Colony,
Massachusetts and the Harlem Company Of this city
would entirely extingush what little confidence exists
regarding such investments, and prevent the cstab
Eshment Of any new lines, the completion OF
those in the course of construction,