The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-21

larger per can't on capital and therefore, 90 far q
the market value Of the stock IL concerned, shoult
lead al others. The company has paid in divi
bends on its preferred stock, from July, 1s49, K
January, 1855, inclusive, fortyone and . half PEI
cent, and In dividends on it's common stock, froa
July, 1847, to January, 1855, inclusive, seventy
and half per cent, par. in cash and part in stosk
The sum Of 500, 900 Ia taken annually from the mel
earnings Of the company, to purchase the bonds
issued on the debt, and common stock Is given, Is
DIVIDEND to the stockholders, as substitute for the
bonds cancelled, 30 that the aggregate Of capital
and loans is not increased. This principle is in the
main correct. We do not approve OF dividends being
paid In stock, without some equivalent without
something to show for II in additional rolling pc wer
property necessary for the better operation of the
rosd but where bonds repaid, aud the debeAo much
reduced the issue of stock cannot b objected TO- Ia
this way the cost will ultimately bs entirely repre-.
scented by stock, which Is the true and legitimate
position for every incorporated company to occupy.
II Is the enormous indebtedness Of the Eie Railroad
which must in the end extingusa the stock, by alb.
sorbiDg every dollar of net earnings. In judging Of
the value of railroad stock, the actual gross in
come or actual cost is the best criterion to go by It
10 fixed fact tina. any railroad company, with q
grsss income not less than twenty per cent on
COST can pay dividend Of about seven per cent, II
the cost is represented entirely by Stock but where
large portisn of the cost Is represented by bonds
bearing seven per cent interest, and the gross
income does not amount to more than ff
teen per cent on cost, oil dividends paid
above two or three per cent per annum
must come from some other source than the net
earnings. The Utica and Schenectady Railroad
Company in 1862 earned 204 per cent on its cost,
and enormous dividends were paid out Of these
earnings to tho stockholders. At the time O853)
Of the consolidation Of the roads forming the line
through this State, known az the New York Cen
trail, the stock Of the Utica and Schenectady was
selling at l52 per cent. In 1854 the gross earnings
of the Reading Railroad Company amounted TO 20t
per cent its cost, and the stock at the close Of
that year was selling at u per cent-less than one
half Of the Utica and Schenectady, upon larger per
cent gross income cost. The inference drawn from
these facts cannot be otherwise than favorable 70
the Reading 90 an investment at present prices.
The upward movement In Harlem was too rapid and
upon too weak foundation to be sustained. The
report recently made Is enough We should think, to
deter outsiders from touching the stock at anything
ike current rates.
At the second board prices for some Of the fancies
advanced fraction, but the market on the whole
vas heavy. Many of the purchases were by the
shorts, for delivery on matured contracts. Cumber-
land Goal advanced per cent; Erie Railroad, !;
Hudson Railroad, !. Nicaragua Transit fell of
Fer cent; New York Central Railroad, /; Harlem, &;
Erie Bonds, 1876, 1; nliaois Central Railroad, 1;
Panama Railroad, 2; Erie Bonds, 1871, /. The up.
ward movement in Panama was a pretty sharp,
but short one. 1t has fallen within few days
seven per cent from the highest point. Reading
Railroad was more active this afternoon. It will
take start Of these days that will tsrtle some
body
Tue following telegraphic despatch was received
in town to-day. II speaks for itself -
ST. LOUIS, Feb. 10, 1855
W. T. CoLKxAN, ESQ.,, NEW YORK
We resumed to-day the depostes are about three
hundred thousand, and checks hundred and thirty
Ave thousand All moving well. PAGE BACON.
II is reported that the steamship Atlantic, from
this port for Liverpool tomorrow, viii take on;
between twelve ana thirteen hundred thousand dol
lsrs in SPECIE and that the steamer on Saturd fer
Southampton win take out very large sum. The
total ship nent for the week will considerably ex-
coed million and half Of dollars. The demand
or sterling exchange to-day was limited, With
moderate supply. We quote bills on London q. 81
q 81 per cent premium.
The transactions at the Assistant Treasurer's Of
fee to day were as follows =