The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-02-02
FINANCIAL AND CONNER CIAL.
MOHKY MAR r Il y.

new buvers or uus uu prices or nearly every stock
the list good bad and Indifferent the quantity In the
street has within the past sixty days materially Increased
Outsiders have, TO great extent awaited themselves Of
the present very inflated state OF the market to realize,
and stocks have accumulated In the hands Of the different
chques Of specustors 50 long money continues sbun
dant there will be difficulty in carrying this increased
amount The banks loan freely on this class Of -
cures and there Ia not bank money lending concern
In Wall street which has not In hand plenty Of rairosd
bonds and stocks. The facilities with which money can
DO raised by paying high rates upon these securities, ID
the principal of the high prices current Not
them depending solely upon Ito merits - productive In
ve,tment would command anything like such prces
The managers Of principal railroads are compelled
keep up the market price Of the stocks to sustain
the credit Of the different companies. would interfere
materially and seriously with their financial negotiations
to have the stocks rule Ut low points the Stock Ex
change. At all hazards and at any expense, there
fore, The public must be daily presented with
Lat Of sales at high rates, and made 70 believe
II possible, that there plenty Of buyers
at the prices quoted. So long this system OF nnan
cierips can be continued long will the public be de-
ceived. 1t has been kept up for years, with and
then collapse, and may be kept up for years longer
with occasional explosion but the elements OF destruc
ton at work and have taken such rm hold at the
companies Of the day escape ultimate bankruptcy
The present system OF management has been perfected
for the special purpose covering up and Disgusting the
difficulties and dangers which the railroads Of this
try beeet oil Sides None know better than these
managers that s Investments the stocka OF our railroad
companies of very doubtful character Theyknow that
but for construction account not dozen could pay
dividend from the first year Of its completion. They
cannot deceive themselves, bot their efforts are all d.
rected TO deceivng others.
No one can for moment doubt that the board Of
sgement Of the New York Central Railroad Company In
tended TO deceive the stockholders OF that when
they put forth the last annual report That ID the
charitable construction put upon It. They are not
fools but shrewd sharp, seeing nancers, and they
know better than any else that would be fatal 70
the company 10 make truthful and correct state
ment Circumstances forced th into this Alterns
tive. is we'll known that just previous 70 the divi
dend day of the Harlem Railroad Company Robert schoy
Ter used TO take charge Of the compsnys books aud
doctor them 20 As TO show that dividend had beeo
earned This he prso,ced for years. and but for beoom
ing involved In financial operations, which compelled
him to avail himself Of every resource within his control
might have continued this dividend paying system for
years longer. The annual reports Of the narom Rail
road Company at the time exhibited very prosperous
financial condition, SO much 10 that mystery to
from four to and eight per II shown that
the last named rate had been earned, but that
portion Of had been used in the
extena OF the road. The New Haven Rail.
Company paid regular dividends to January 1859
In May of that year The Norwalk accident occurred In
volvpg damages 70 the amount of say $35o,ooo In
cpaon Of that loss dividends suspended and have
been resumed After lapse OF four years Previous
10 January, 1863 per dividends paid
nualiy 100000. requiring each year the Of
$40 600 In the four years the aggregate saving by the
suspension Of dividends would amount 70 $40, o0v-a
$500 greater than that lost by the Norwak
accident The gross earnings Of the company have since
1853 annually Increased, but the treasury OF the COM
pany DOES not show than tniug balance In hand
the dividend had been earned previous
10 1858, 10 certainly must have been earned since;
and II earned, what has become of NJ We
this question. II never earned All the annual re
ports made during the payment Of the dividend, report
the current operating expenses TO have been 80 cent
In tho annual reports made since the suppression OF the
dividend the current expenses put down o.! seventy
and seventy five per cent. When becomes longer
actually necessary TO disguise the fact, 1t is admitted
When II d longer necessary 10 show . dividend
earned, the actual current operating expenses cor
recty given In the annual reports The Hudson River
the Harlem, the New Haven aud the Long Island Rail.
rating expenses admitted to DO from seventy
per cent OF the gross earnings We alude TO these
facts here for the purpose OF showing the bogus character
Of the annual reports OF railroad companies tha. scknow
edge . current operating expenditure OF only y per
cent OF the total receipts These reports made up IN
such formidable snaps-are nled with so much detail
which 10 Intended only TO confuse that outside Of
the companys Office, and very iew inside, mako bosd
tail 10 them This is their object and In this tncy
succeed very we'll All tina. the outside stockholders
want ia dividend At the regular time, and hardly
bother themselves soout how II has bceo made. Wneu
q collapse takes phase. - In the Erie, Harlem,
New Haven and dozens OF others, then there
s . grea. cry about swindIiug. fraud, decep
ton, doctored reports &C. &c. Then the poor injured
innocent deceived stockholders are loud aud bler 10
their condemnation and everybody blamed bu, them
selves. In q day hour they dad their property
comparatively worthless. In = moment, many Who dc
pended upon dividends for the OF living and
themselves penny less and perhaps objects OF the worlds
cold charity all for the blind stupid condolences reposed
in set Of who tfe reputation OF being highly
honorable and respcc,aoie-of who, because they
had anassed wealth by swndlug opersuons Of similar
character. were considered honest and cspa.
bic than those VINO had become rich moderate
fato and according TO the notions Of people In a
less equivocsl manner In sfc~ years 70 shall
re- ut Of the present sysem Of railroad hnanclerus
much longer List o. bAnkrup, aod noa DIVIDEND paying
companies.
There we're shipments Of spcsie from this port 70
Europe Last week The total expectation for tue oata
was 81 ooo against sioi sst for month last
year, while the aggregate receipts from California were
shout 80 oot Geo less than in month Of 1855
The result shows greatly against us compared with the
period last year.
A. II. Nicoay's regular semi weekiy auction safe Of
stocks and bonds will take place on Monday next, the
Ri Feb, hafpss, twelve o'clo,r, al the nerchaata'
Exchange.
The Assistant Treasurer ihi port report, the Opera
lions on saturday IS follows
Iopl receipts 1881, s26 81
wv It3 so,ofs w
Nhl 30
TIE warrants entered n the Tresury Department. |
Nashngton, the 2sth and 2gth instant were 40 fol
ow,s--