The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-12-28
FINANCIAL AND COMMERCIAL.


Delaware and Hudson declined per cent Michigan Cen
trail Railroad, u, Reading Railroad ii Michigan South
ern Railroad u; Panama Railroad, u; Gaena aud Chi
cago H. New York Central does vary much from %
per cent. The daily sales small and the brokers ap-
pear to have very little disposition to touch it, Hudson
River Railroad is about the position. Speculation
Is dead in both Of thu EN-. Reading Railroad heavy
the opening to-day and closed weak lower prices Tho
bears making all sorts of handle Of the dividend
payable in January. There rumors to-day in the
street that would be four per cent cash per
cent in stock and disposed to believe that this
nearer the mark than any previous statement 1t
opinion that four per cent in cash and two per cent
in stock will be the payment This will Of course
leave surplus of earnings for future contingent
ces. 1t must be borne In mind that the floating
debt is large, and must be provided for 1t wsud
obe the wisest policy to pay large cash dividends while
the floating liabilities remained at such high figure,
and have much confidence in the judgment of
managers of this road that feel confident they will
look hereafter to liked rate for cash dvi
dends without effort to stretch the utmost and
leave the treasury empty With the four per paid
in cash in August last and with four per In
January and extra dividend OF say two per cent In
stock at the same time 1t appears to sufficient, ia
view OF the large reservation for emergencies Our rail-
road companies must hereafter look to the
ion renewal fund.- No company is safe without lbe
raj appropriations for that purpose regular ssm
D. moueIate amount, VIII proper
reservations for renewal sinking fund.- &c. will do
to raise both the actual and the market value OF raro
stocks than all The extravassnt bat irregular those
declared Holders of stock something
they can depend upon-sometning permanent-somehing
fixed with occasional extra dividendf they for
tunate enough have Investments in companies which
can accumulate surplus for that purpose.
The sensibity the subject of the Reading Railroad
'.outside barbarian is enigma that cannot be
1.t:~ xr.
cotempoares, to ask the knowing onesthe parties
whose eyes open the tricks of the radeto look at
its condition OF contemplate for momea it's extraordi-
nary business prospects, Being all in the boat
all s'freghted 10 the gunnel' with worthless cargo
and all laboring to themselves with the small
portion of their IeasuIet would be death to recog
Mise, permit others to recognise anything in bette:
condition To say that the coal tonnage the Reading
this year 212 7S3 tons-tha its freight and passen
ger business nearly up to ts expensestha the in
terest its indebtedness but s465 s46 and that its
after paying every liability of the company, is
COZ per cent its stock aud to ask stheir
| friends to believe it, under the circumstances,
would be asking the sinking to abandon
| his to the expert swimmer, the
mother to give up her SICILY child for the healthy
and robust offspring of her neghbor Our and truly
legitimate offspring therefore, the darling objects Of
care; and, Mrs. Macbeth says we love the child
| that milks u.s." must stick to Eres, our New
| York Centrals, our Michigan Central, Michigan
Southern, and several roads, 'for the trade of Al
bany where trade be had for the expenses
Hence the fears that the expected dividend the Read
ing msy be eighth of per cent below what its
friends looking for But nineteen twentieths OF
the stock of the Reading Is in the hands Of parties
who have looked into its condionwho have used their
eyes and their judgment in relation to Its ad
vantsges and who hold for investment, and salts
Ged in the futurA-tha gensbilities
of our Wall friends have but little effect
their system. They know Its enormous bu-
sness, and its ability to maintain II. They know
that its descending grades enable 1t to defy COM
petition and that It's cost and final adaptation to the
business enable it to meet the expenses that would
| otherwise destroy its advantages They know, also,
that of the entire stock of the company but 5O45S
shares held in New York. that in October last
shares in the hands Of l7e persons, and that now
2oS persons hold from to four hundred shares amount
ing TO 90 666. OF the balance about IL ITS shares in
the hands Of brokers' in trust for their outside friends
GOA in the hands of five individuals, who purchased
previous to March last and the remainder amounting
to 500 shares only in the hands of the bears This
distribution Of the stock in this city is therefore, the
for the various dividend rumors" and the why
the stock is not at par. The deliveries for January
coed half more than the whole amount and the sales
per cay exceed the amount actually in market There
FORE knowing these facts and knowing the prospect o.
dividend OF the entire floating debt during 1851 with
extraordinary dividend in cash from the business of the
road during 1885, IL is not likely the holders Will give up
the stock to supply the sales made upon the credit Of the
| parties.
| There Their stocks the market the value
of which Fixed beyond Doubt but the great majority
OF securities the list at this inflated far
beyond their real value, The margin for depreciation
must be removed before outside spectators win be at
| IaeteS. be that purchasprs will
take hold any thing like current rates. We look for
decline OF some importance within the next sixty days
Michigan Central Michigan Southern New York Central
Hudson River Cumber and Coal all must and set
tie down 10 something like their actual value, before
speculative movement be peced Every Of the
stocks named Is enormously inflated. The three first
railroad stocks manage pay at present pretty
respectable dividends but there is guaranty for the
future, reservation for those contingencies which,
with all roads Of large capitals ~ any moment likely
occur They productive to the extent repre-
sented beyond the moment Any day serious disasters
msy that would sweep away the entire years net
eanrgs and in the Absence of reservation fund, dvi
detds would have TO give way and the stockholders be
compelled to patiently wait the return of better times.
The construction account OF each Of these companies Is
increaspg rapidly ADD is utterly out Of the question
TO arIes. it without immediate suspension Of divi.
dends
After the adjournment Of the Beard, the following
sales Of bonds stocks at auction by A. H.
| Nieolay-
IS coo Missouri State Sizes Interest added. .. s5,a
10000 Lake Eie Wabash ST. Louis RR. LIST do u
5000 n. y. Erie RR., Ccnvertioes, 1871 do. tx
5000 MARIETTA and Cincinnati RR., lst mort, do. ~
shares Bank Of Sing Sing Neutrality-suspicious.. 76h
Ie5 Erie RR. NEUTRALITY-SUSPICIOUS.. 80
2S Chicago and Rock klaud RR............ s6h
| 40 North River Insurance Co. ............. 1907
20 A." knickerbocker Ice Co................. eih
Simeon Diapers regular semi weekly auction sale OF
bonds andstocks will take place tomorrow FridayD At
haltpast IL O'clock at fte Merchants Exchange.
AT the second board the market was comparatively
quiet Erie recovered most OF the decline In the morning
and closed frrn. There change in Reading Nj
carsgua Transit working slowly but steadily upward
The purchasers among the most folid men In the
street and The shorts must look sharp TO their