The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-10-03

Dir. s. Diapers regular semi weekly auction sale Of
stocks and bonds will t-ke place at tue Merchants Fix
change 10 MORROW, Tuesday at haIfpas twelve O'Clock
lte amount Of caral to1s cole cted in New York city
from commencement OF navigation, May l, 1854, %;
Set ctd n iS5a, from aprii 20 10 oc! H.. 2i se 81
increase. $4,000 ~
The Msetug OF stockholders Of The New York aud New
Bayen Fsilread Company called by the directors, viii
be hst, according to publ, rotice, Tuesday
At eleven O'clock A. 1t is belief that nothing WI
to accom- piished, and that adjournment will take
place without any definite action rel4tve the
issued stock 1t will be stormy meeting and the excl
inert will too high TO permit the transaction Of any
businePs
This seirg the sge of reform and rerenchmen in rad
road agemsnt it becomes to take hold Of
the difficulties with oeternaina on 10 them in
the shortest possible tin and ia the most eecual man
Fer many years have been travelling the road
to ruin rapid The creates: ignorance has beea
exhbiedi the construction AID operation Of railroads.
and in tie expenditures the greatest extava has
been prscsed This course, pursued for such longh
OF tine has involved ths i'm ort mt interest in all sorts
Of enbaarsfsmens, and neary prosraed many who had
become Individually Unidentified with certain leading
panies. Within the past twelve months many great
changes hye taken place in the value Of railroad proper
IT, Several companies have publicly proclaimed their
with impaired credit, with the prospect of being obliged
ultimately to admi. their Insolvency The panic created
by the announcement OF the Schuyler fraud brought
abouta revolution in system OF railrosd naS cering,
and sinte the attention Of managers has been turned
moro 20 liquidation than TO the creation Of d.tiona liz
debsejpss The past three his have been fruu! in
reforms, aud satisfied that much economi
cal system o management throughout has been adopted
The committee appointed by the stockholders to
fs~atA - r. p..I..
that Large OF money couli be savel annually by
making slight alterations in the operating depart
ment TIE running OF the road have Therefore
been largely reduced Other reforms recommended
and have since been adopted But for he for this
examination givenby Schuyes's frauds the Harlem
pany might have gone for years under the extrava
CANT effective stem of management whi:h had been
ptacised from the start TIE Erie Railroad Company
has from rs 6rst ganzaion been the hands Of
who knew about ser railroad management
than unny schoolSoys and the result is in the
embarrassed condition of It's finances In the fac of
most CANT expenditures cor the ension of the
ROAD uds have beer paid semi annually AMI every
sacrifices made to sustain its credit tc enable the directors
to borrow money Mliors npoa millions OF dol airs have
been wasted in outlays which could haze been avoi sd
and It hiss appeared 10 throughout as though toe
msnesemn. trying 10 bankrupt the company in the
shortest sste lime. The sccy Ter aud has been
the Harlem Il brought the finances Of the Eriecompsny
TO focus and removed al possibility of raising money
for any purpose until great change had been sde
ia TIE nsiration OF its affairs geneally, and Of its
financial affairs particularly The effect of the Schuyler
expos. upon the credit Of railroad companies was such
that the bes. Of IL found dc I 70 manage their
floating dbts and those which lad been struggling along
With great diculty BEFORE compelled to sabmit to
runous sacrifices to keep thsr heads above water Four
&c haNi
in this market succuESed the force o. the financial
whirirind and forced toplss their Dividends ard
apply their net ssInings 10 the liquidation of portion
of their floating debts We alude to the New York Ces
trail Erie, Harlem and Reading Nothing bat this saved
them al! from protest, AID perhaps something worse.
The effect OF this delinquency 70 stockholders the
mnrke. value Of the stock crushing 10 the Erie AMI
Harem-Central and Reading staggered heartily under
the biox but have nearly recovered while the other
two ccatnue much depressed The finances Of the Erie
Railroad Company in confused and uu-
settled stste than in either Of the other concerns,
and It theeic,e requires greater skill to exricate them
from their embarsssments With much larger debt than
any oths. road IN the county, involving such
nous interest l. Is Of the most vital importance that
such should be adopted by he incoming ADM
nissratio1 viii place the eany beyond all future
difficulties Of Ibis nature, q. least. I. be done
We have during the past eight years, been satisfied
that the Erie Railroad Company would reach Just the
position it occupies. Its financial policy has been
gradually leading to such result, and il would have
been miracle had j. escaped IS time to wha,
a new system win accomplish We 5eleyc it to be per-
fect,y feasible 10 place the copanys finances in safe
and sassae Org condition. to in,ure its productivcne
and ultimately make it prosperous and paying con-
csrn Ire company have saved $3.50 900 by asng the
ctotsr dividend. similar amount viii be swei by
assiss he uext-Aprit-aividend. This 100000 viii
gol ds for tbs floating debt and leave the company With
othirs but its income bonds amounting TO about
2s09 arrange the lt OF February 1866. Now,
In wen snova that Of these BON be paid ia
each That berg out OF the question we mist devise
some way to replace them by nex issue and 20 pro
vide the ultimate liquidation OF that issue.
Tho only ray 70 do this Is 10 establish sinking fund,
the aeeuuulscrs of whch will be sufficient 20 lueats
the entire Indebtedness OF the company before the miu
r;ty of i!s longest dated bonds. A sinking FAM OF
s5e0,ceg Psf would somplsh that desirabls
suit and here any truth in the report OF the
pany relative to earnings tie appropriation Of such
amount sSauay for the purpose can easily BE- made IL
Il estimated that the gross earnings OF the road during
the year 1885, viii amount 70 s. 900 900; deducting dy
per cent Of sbst for operating eenses leaves net in
Of coo. The annual interest the total
Indebtedness amounts to about 81 600 which deducted
from The So COO COO net income leaves 81 800 600
plus from this deduct $685. 900 for the sinking fund
and for the stockholders $500 600 for dividends
FOR sDy other purpose they may appropriate to- e.
timsting the operating expenses at atty ave- instead OF
atty per cent and making the dedac lion for int
rest debt and sinking fund the amount left for d,
bends would be $500 oo equal to Eve per cen. The pre-
seat capital stock To make this calculation and the
conclusions correct 1t only necessary to establish the
date ia two psrtcusrsthc gross income and amount Of
running expenses Thesc points settled all the rest
clear enough We understand that the present suprln
tsnden OF the road says that the line be operaedof
forty per cent Of the gross iGconc but 1t is
opinion that ty6ye would be the actual expenses
The establishment Of sinking fund Of $soo,oc0 per
annum wouid give the Erie Rsilroad Company high
credit ana enable II to replace upon favorable
terms each class Of bonds thsy matured The reduc