The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-09-21
NEW YORK HERALD FRIDAY SEPTEMBER 81 1855

ings Of the company on the LIST Of October,
for the six months ending that day, will be equal to
ten per cent on its capital II divides five and
serves the balance for general depreciation, contin-
gencies, &c. This s the souudest safest policy to
pursue, and we have guarantee in the character Of
the men who manage the affairs of the Chicago and
Rock Island Railroad Company that it will be strict.
" adhered to. We trust the example set by this
and the Galena and Chicago, in this particular if in
no other will be followed by other companies. This
is the policy we have always advocated and in
sisted upon, and we will never concede the net
earnings as stated by any railroad company to be
correct until it can show that it has reserved
a sufficient sum, over and above its current ope-
rating expenses, to cover its average depr-
citation and provide for extraordinary contir.
gencies There are four roads in the country that do
this, and the stock of each will command premium
long after all others have sunk to the lowest points
in the list of fances. In these companies, where
the future has been amply provided for, we note it
with the greatest pleasure, as we have not hesated
to condemn the contrary policy in other roads.
The contrast between the Chicago and Rock Island
Railroad and the Cleveland and Toledo is peculiarly
striking, and we hope it Will be observed by every
holder of stock in EACH While the former earns ten
per cent and divides but five, the latter earns but
two and half and divides four. 1t is possible that
some of those interested in Cleveland and Toledo
those who hold the stock at present prices and pre-
fer it, at Sc q 81 per cent, to Chicago and Rock
Island at 1929 l03think that it is poor rule that
will not work both ways, and do not stop to inquire
which is the best. Let see if the statement made
relative to the net earnings and dividends Of each
of these companies, is not "gross falsehood." We
do not wish to annoy our contemporaries with any
inaccuracies, and have, therefore, carefully revised
our figures:-
CHICAGO AND Rock ISLAND RAILROAD.
Gross earnings, six months ending Oct l, 1883,
Sept estimated $3.50 ooo). :s721 SCI
Running expenses 90 per cent $500 $50
Iease Bureau ue Valley Road 1850
- 400, $50
Net earnings, six months. s22s 276
Surplus after paying April div tend. $4,000
Equal to 10 per cent on the capital stock 1921 27s
October Dividend per cent S. 000. 1852 800
Surplus Oct. l. 1855. .s158, nc
CLEVELAND AND TofIDo RAILROAD.
Gross earnings, six months ending Oct !, 1855
Sept estimated sos 000) 1898 $50
Running expenses 55 per cent. ...... .s21o,19l
Interest on bonded debt ............... l22, 500
sinking fund, six months. ............. 1880
Floating debt, Gnanciering &c......... 10000
- 370,1e1
Net earnings, six months ACKNOWLEDGEMENTS. &c., 3s
Surplus claimed after paying last divid end (after
charging s105 goo interest bonds to construc
ton accoan) .......................... olooo
Equal to 2A per cent capital stock ..... $40 $50
October dividend per cent So 0oo. 10000
Deficiency, Oct. /, 1855. s49, 6e1
These results are perfectly overwhelming. There
men, but one conclusion. If the Chicago and Rock
Tc1o ia Int rrnut nd nd
ledo cannot surely be worth SO per cent Look at
both stocks as investments, which is the only true
light for outsiders to consider them, and there can
be but one opinion. We have not in the above exhi
bit compared the cost or capital of each road. We
here give it, to all doubts if any still exist,
regarding the comparative value of the securites-
Cleveland and Toledo-Capita stock so, 10000
Bonded debt. $500 900
Float'g debt 200, 600 SO, 7OO, 600
Chicago Rock Isl'd-Capita stock. So, $50 900
Bonded debt. 1000, 900 $780, 900
difference in favor of Chicago Rock Isld 81 $50 900
The Chicago and Rock Island is finished, COM
peted road, and its construction account closed.
All extraordinary expenses of every kind are pro-
vided for in its large surplus.
The Cleveland and Toledo is an unfinished road,
and it's construction account is not closed, but,
the contrary, is rapidly increasing. 1t has large
HodtihB ucpo' anu tAhe ID diSo iupiuiy uCAedSiHB.
The above table of receipts clearly shows the
actual productveness Of each company, that any
further comment is unnecessary. It appears strange
to u.s. in the face of such undenable facts that any
man outside Of the speculative cliques of Wall
street can be induced to hold Cleveland and Toledo
stock at anything like its current price. 1t is well
known in the street how the market value Of the
stock is sustained, and 1t is also expected by those
who have the most experienced in these things shat
fall of three four five per cent may take place
any day. The stock is sustained by the heavy pur.
chases of spectators, and they nearly loaded
down with it. We have a strong desire to save, If
possible, those who induced by the declaration
of unearned dividends and doctored reports to pur
chase at high prices and the only way for them to
get out without heavy loss is to sell while specula
tors compelled to buy, with the hope Of getting
out themselves before the grand bubble bursts.
By-and-by the cry will be, "sauue q,a peui."
Stock Exchange.
THURSDAY Sept %, 1855
5000 Ohio 6's, 'f0.. 1864 200 shs Erie RR " 56A
20C0 Erie BIDS of II. SO 1U0 do. -. :. bS 5osa
1900 fIudR3dmtbs. 75iS $50 to.... bio 5GS
COCO III Cen RR BIDS. S6a1 500 do.... bio 58L
COCO do....... sea SO do. 80. 5G1s