The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-08-29

Inc interest on Inc nfSt mortgage ponds Tor three
years nom the date Of issue, has been deposited with
the Comptroller, 80 that the interest on about nine
millions Of dollars this year, has TO be provided for
by the Company. Six per cent interest on the
81 ck and seven per cert on the b0r do issued and
floating debt make An aggregate Of 1862 900. To
psy this amoon', the aggregate receipts must be ut
lest 81 164 900, upon the favorable calculation tat
but fifty per cent of the earnings are required for
running expeI and repairs. 1t Is, no wever our
impression that the unning expenses and repairs Of
the Erie Railroad will amount to full sixty per cent
Of IL gross receipts: and 80, the income for l849
NUT each the Gum Of 81 100000. This Is an n
mense an QUIT, aud will no doubt startle and alarm
tk0.e wh0-have depended upon n gular payment
of the interest upon the liabilities Of the company
but time, and Lot very long time either, will show
the truth and correctness Of our calculations. It
will DO rec0llected that several months since we
made statements somewhat similar to these, aud the
time which has since elapsed has strengthened in
the opinions then expressed. The company have had
nearly six months business on the extension road,
and mono Of their estimates have been realized; and
we have good data for our calculations a. tho COM
pAny, or any set Of SPECTATORS, and we wish to
place them side by side, for future reference and
comparison. Since our last statement relative to
the affairs Of this company, an official report has
been made by the Board Of Directors extracts from
which were given in our columns, without comment,
feeling disposed to afford the company the same
facilities for giving publicity to its own estim stes
has enabled those interested to judge more correct
~ for themselves, and will also give them an op-
porfunify to see who has been the most correct In
their statements. Those interested will no doubt
be some1 hat alarmed upon being informed that
there ia lot the slightest probability OF the seminar
nual interest on the stock due the first Of Janu
airy next, being paid ont Of the earnings Of the rad
We do not mean to say that the next January divi
is not compStely exhausted, and 80 long as It can
issue bonds interest will be regularly paid; that
is, II the company can find purchasers at any rca
sonable discount. The management may deem 1t
IT, IL rRk
road thus far, and In the absence Of sufficient In
come from its earnings, to stop for . time paying
interest, and wait the extension to some more i'm
portant point on the line.
on rapidly, Zone and half millions Of the four being
already are the market.) When the whole of these
bonds are In the market, the total Indebtedness Of
this company viii amount to fifteen millions Of dol
$9A7 900, to pay which the gross earnings must
reach the immense sum OF 81 SIC. 000 Toe dividend
TO be Iaid on the stock on tho LIT Of July pr0xml,
must DO drawn almoat entirely from the capital Of
the company, and SO will the interest dae on the
LIST Of November next on the bonds aud flo ating
debt: This caanot be sustained aud the best policy
for the company to pursue under the circumstances
is to omit one Of the semi'annuAl payments Of inte
,ett on the stock. If that does not ans wer-n the
earnings do not pay one dividend Of three Per
cent in the year-then drop the whole, and let
the stock take care Of itself The bonds and float
ing debt must be taken care Of, ami the interest
promptly pa1d, or tho company mus Dc declared
bankrupt and suspend. As for its bankruptcy,
that occnrred long time ago. but tho company
has been able, by Increasing its liabilities, to meet
Ito payments. THIS however Ii not 70 the purpose;
our object at present il TO show that the interest or
dividends on the stock cannot b paid any longer
without adding largely TO the cost Of construction,
and materially retarding the completion OF the
work. At present prices, q dividend Of th 90 per
cent per aunum makes the stock Eve per cent To-
vestment and a. large portion OF il hes not cost
holden much ah0v0 the Currenf DricA no 0nA WOuld
be very much injured, ana the finances Of the COM
pany would be much improved We recommend
this TO the serious consideration a ths management,
with the firm conviction that nothing else win
save the company nom An explosion that will de-
pieciats IL securities fifty per cent from present
prices.
From the Herald, June 20, 1891
The receipts Of our railroad companies have been
somewhat reduced BY the panic produced BY the
cholera upon the travelling community. At oil
events h attributed 70 that cause; but that al me
= mot sufficient 70 account satisfactorily for the
meat nIlinR Oh In the income Of roads divergine
fc this city Ii does not &C ount for falling of
Of hif three per cent In The receipts Of the Erie
Railroad, compared with what were considered the
most moderate estimates. Il was the opinion OF the
manaeemens upoa tse opening Of the road to Bing-
hamt0n thos The income 70 that point for the year
lsle, would amount 20 tl,O0OO00. Tho road has
been open "a tbst point, Binshamtoo, nearly six
mocths, and to OwcGo. thirty miles further, nearly
one moAth, and the .groa ssrniags for thu ak
months, for the ~hoIe business Of the company.
nclndins the ftsightsss Of IT, own isos, "a,
Which w. includeA In the rctarns, VIII amoasS
70 bat little uert than tkrW hssdrd Msw