The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-11-20
FINANCIAL AND COMNERCIAL.
MOHEY MARKET.
SUNDAY. Nov. 1910 p. !

The stock market, during the past weck has expe-
rienesd fluctuations somewhat extensive than
usual but they 70 have had material effect upon
the views Of operators upon the position OF sPecu-
lators The reduction in market value within the past
SIX months has let loose great deal OF capital II re-
ques much less to carry oil the leading fances now
than it did few weeks since, and this has been an
inducement for many to take hold - purchasers A.
present prices the dividend paying railroad stocks give
larger of interest and investments are made daily
where and twelve per cent interest per annum VIII
be realized without much risk Of further depreciation
There is advantage in such investments which makes
them most attractive and such securities must be
entirely absorbed We aude particularly TO FIRST class
railroad bonds. In less than twelve months there will
be scarcity OF this class Of stocks, and they win be
sought after at enhanced prices. The absorption Of
good railroad bonds is going in Europe, well
this side Of the Atlantic and the creation Of them
has nearly ceased, the supply must before the
lapse Of months, be largely reduced. All FIRST
class railroad companies will be able at all
times TO raise all the money they want at rates not
at all exorbtant. We allude particularly to those
roads which completed and located to com
mand large traffic, without muck regard to sectional,
financial or commercial disturbances. Unfinished roads
have hard time of it just now, and it will be long
time before the for their completion be raised
Railroads earning large Of money monthly, and
showing from month to month handsome per cent in
cannot be checked by any temporary contraction
in financial affairs. Those which have been productive
must with good management, continue so, and the most
they would be in the natural increase Of
ings, year more since, when railroad bonds were
put the market at the rate of about million Of dol
lars per week, there gut, and prices down to
very low points but during the past year consump
ton has been steadily going while the production
has almost entirely ceased The effect of this great
change must be felt in the market Those who
were unfortunate enough TO get bonds Of half finished
roads make the best Of bad bargains and make up
their losses by economy and industry, While those who
made in completed productive lines must
nue to exercise proper caution ia the future purchases
That there will continue active, steady demand in
this market for good railroad bonds, there
is doubt; and the supply decreases
prices must improve The construction Of lines Of
railroad has stopped This alone viii be Of vast service
the ues in operation The arresting the pro-
gress Of works must in this way prove beneficial to
the old established companies They have for the time
shut of competition, and charges for both travel and
traffic win hereafter be enhanced to give larger
net income out Of gross receipts Arrangements have
already been completed to this effect and of the
leading lines have been in operation few weeks. 1t is
estimated that the increase in the tariff of charges viii
be equal to reduction of full ten per cent in the
ng expenses All this tends to the relief Of the older
companies from their temporary embarrassments, and
viii ultimately place them in better position than they
1--we ever before occupied. The companies win
to struggle along they best until better times
appear We have railroads enough for the present. and
must give the country opportunity to from
! burden SO imprudently heaped upon it, and gain
strength sufficient to make productive all existing works
Of internal improvements, before investing any
capital in new projects.
There but two railroad companies in the market for
loans of any magnitude and these likely to be
cessful We alude to the New York and Erie and the
New York Central The first named is In the market for
nominal loan Of 81 600 oo0 but actual loan of only
81 $50 600 which will its entire floating debt
and place its bonds at long dates with abundance Of
available funds to provide for them they mature.
The gross earnings of the Erie Railroad Company the pre-
sent year will be nearly equal to the original estimate Of
total cost and upon the net derived from this
enormous income the company feel confident of beng
able to establish sinking fund Of nearly half million
Of dollars per annum and pay to the stakeholder
moderate dividend Within the past six months there
has been greater revolution in the affairs of the Erie
Railroad Company than in any other road in the country
revolution which has placed the concern in much bet
ter position in all its departments instead Of placing IT
greater embarrassments, like many ether roads. The
lric Railroad Company have at last adopted policy
which have been urging upon them for the past four
five years and the fact Of its having done shows
correctness Of views. From the organization
the company up to last June the principal business
of the management the contraction of debts by
Of bonds, and the expenditure Of money conf
sruction account with the greatest extravagance Now
all that has ceased The construction account has been
closed The payment of dividends out Of the proceeds Of
the sale Of bonds has ceased and the attention OF the
Management is turned to the consolidation Of its
debtednsss and the establishment Of proper system
~ finance Under the old system all confusion and
rayagance: under the new we have every reason to
believe all win be order and economy The resu.. Of
every years operations will be reduction Of debt Instead
OF an increase and the influence of the sinking fund
upon the company's securities win be much more efe
than is generally anticipated. The appropriation Of
rly half million of dollars per annum and the nterl
that amount, to the purchase Of the companys
evidences Of debt, must work like charm upon the
ket value each class of bonds but particularly upon
he issue under the loan. The nrst month after
the negotiation Of that loan the trustees of the sinking
fund will be in the market purchasers for thirty
! usand dollars worth. How much that will buy de-
ads upon tho market price, and the company will have
the benefit monthly of any discount II may at Hrst be
obliged to pay the loan 1t is estimated by those we'll
posted relative to the present condition Of the Hnanc
Of the Erie Company, that with gross income for the
year ending September 80, 1855, of six millions three
hundred thousand dollars there will be- after paying ope
atng expenses interest debt and sinking fund net
of nearly million of dollars to be appropr.
aed TO such purposes after paying moderate dividend
q the management may deem advisable.
The annexed statement exhibits the daily quotations
in this market from actual sales for the leading specula
iatve stocks during the week ending and including
lrday the 18th We have taken the highest cash
price each day for the purpose of making the
comIarison-
QUOTATIONS roR SHOCKS THIS MARKET.