New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-01-31

.eisI EXPERIMENTATION. 1900 t2COO 5000 5000
From which il viii be thst the decrease In receipt, no
amounts to $500 halls The increase in exports 10 GTss'
Britain 1875 oo bales France 7v othef foreign poiH wv
Total ineIease IN exports, N6 eco hsleo
We are informed by Mr.. f. w. Serrel OF this Cisy,
that the contract for the Troy and Greenfield Rail
road including the Hoosiek Tunnel, has been award
ed TO him and not to Messrs. Aspn vail, Corning ~
Co, as stated by our Boston correspondent. Messrs.
A. G.. & Co. have had nothing wh,tever TO do with
this matter. Mr.. Serres sureties were accepted by
the Committee of the Board Of Directors on Friday
last. The conditions of contract are pay nents in
State loan 900 600 cash subscriptions by parties
along the line s6sO OOO the balance, $500 600 in the
Conpany's bonds.
Al the request of the officers OF the Chicago and
Rock Island Railroad Company We publish the f1i'
lowing extract from the rreasurers last Annual Re
port:
Through the able financial management OF Mr..
Sheffield ard the skill and perseverance OF Mr. ar
nam the Chicago and Rock Island Railroad has gone
steadily on from the commencement TO ITS compile
uon every engagement of the contractors IN an ex-
penditure of four millions and bali OF donart, having
been met a, maturity; and all the settlements having
been made with the contractors, without putting
note Of the President and Treasurer into the market
curing the whole time; and when the road was sur
rendered to the Company in July last, there WAS no
floating debt Of any description.
This freedom from debt, and the liberal earnings o
the road. will enable this Company TO establish
sound financial and working system TOR the road,
which will make the bonds, and the stock also, solid
and reliable security But In order to do TINS, asound
system of finance must be adopted and adhered ID.
When the road is fully equipped for doing the busi
ness Of the line the construction account should be
closed with bars not subject 10 removal and every
thug The nature OF pairs should be paid from cur
rent receipts and the dividends should be limited 10
actual net earniogs sitter retaining surplus for ds.
probation of the work which rapid, and Increases
with the increase of business.
Although our road has commenced under very
favorable auspices, as to the exen. and productive
ness of its business the prices at which railroad secu-
rites generally sold in the market, ought 10 lead
us TO inquire and ascertain whether the present de-
pres sed condition OF these securities II not owing
more 10 wide departure from the wholesome rules
before referred TO- than from the severity OF the money
pressure, OF the infdelIty Of one or two prominent
persons, on whom the public confidence had long
rested in relation 10 all arrangements connected VITA
railroads.
The great financial error in the railroad system gem
orally seems TO be, that the construction ace Junt Is
permitted 10 run with the road; whereas, when the
read is completed and in operation, the construction
account shl uld be stopped.
Another is in creating stock, which IS not rep
resented by the sum actually expended in the con
siruction Of the road, or IN It's equipment Ii the
money obtained on account Of the bonds and stock
ssued is faithfully applied to the construction Of
railway the owners OF the stock and bonds would, in
most cases, have q reasonable guarantee for jdst
remuneration on the sums advanced.
When road is in successful operation, the
claims Of the stockholders for diyidehd Of ali the
earnings beyond Ding expenses very strong;
and often, the desire of profitable operations b. inhat
ing the stock, has still stronger influence in pro-
duciI large dividends. As the stock becomes de-
srsble, every rsquiston for al increased e1pendi-
ture is promptly met by q new issue of stock. The
result H. that az tse end O i've or ten years the capt.
ISL stock which dividends are 70 be declared, IS
found to be double what il understood 10 be at
the time the road puTpoiied 70 be finished And the
- T.
Is 4 cent. dividends with occasional extra diyi-
dend in stock, are informed that dividend will be
paid to hem provided they will take the amount out
Of new issue Of sto * or bonds a. par
The severity Of the times and the illegal issue Of
limited amount OF stock, has produced Investigation
al developed the great errors in the financial man.
agement Of the railroad system generally. Com
mencipg operations a. the very time ofthese develop
nents shall we be held blameless if we fail 10 cor
rect the errors which now must be apparent even TO
those who have been tempted to commit them
II the course above suggested mad been generally
Iol,td ffisr years seo, ard firmly edhered TO, il