The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-10-08

nov !, the harms OF the Illinois and iowa farmers
no decline in freight business can possibly DC per
manent. and that If from accidental causes the
road received less than was expected one week, |
Il would take more than was anticipated in some |
subsequent week. The stuff, everybody knows,
must come to market SO oner or later. As TO the
increased cost Of construction, believe that this
was in direct violation of bylaw Of the company
which forbids the officers spending money on con
struction without permission Of the Executive Com
mtee. We are not inclined to think that the share
holders in the Rock Island road viii be satisfied
with Mr.. Farnam's explanation. The road had
earned over three per cent, and they entitled
TO IL. II roney was needed for construction, why
were not the 800 600 Of Rock Island stock held by
the company turned into money! What is the
meaning of an investment of s242 900 in the sink
ing fund! We confess that the whole transaction
wears a most suspicious look, and when the stock
holders meet next spring for the election of OIL
GERS some of them are likely to express their views
about II in a way which may not be palatable to
the directors The present Board consists of Thos.
c. Durant, New York; Francis II. Tows, do; Da-
vid Bows, do; Charles w. Durant, do; f. W. Dun
ham, do; William II. Macy, do; John d. Jerys,
Rome, New York; Henry Farnam, Chicago, nl.;
Norman B. Judd do; John +. Tracy, do; Robert
A. Forsyth, Newburg, \. " Theodore s. Paxton,
Utica y. T.. and Ebenezer Cook, Davenport, Iowa.
OF these Mr.. Thomas c. Durant was the only one
who voted to give the stockholders the money they
had earned. Mr.. David Bows was not present at
the meeting.
The uneasness created in this Rock Island affair
affected all securities for time, and caused an I'M
asoning panic on the Stock Exchange. All West
ern shares fell per cent, and even the Central
and Erie declined almost as much. This decline
was followed, as was natural, by reaction, and
the week closed on an unsettled market The in
dicatons are that there is a stronger and more de-
termined bear party in the Stock Exchange at the
present time than we have seen for many months,
and that we going 10 witness, this fall and win
ter a sharper contest than Wall street has known
since 1857.
The arguments Of the bears are, first, the politi-
cal uncertainties Of the day If Mr.. Lincoln should
be elected President, is generally supposed that
some trouble will follow at the South. The bears
que that this viii affect stocks and induce people to
sell out their Northern and Western railway shares.
Some Of them 90 50 Ear as TO predict civil war and
IN actual attempt to dissolve the Union. Again,
they argue that the money market is uncertain
that money is growing steadily dearer from month
TO month and that in November it viii be very
scarce. Again, they say that the grain-bearing
roads are making no money, all their receipts being
absorbedby their working expenses. Finally, they
assert That the present prices Of stocks purely
the work Of speculation, that there Is real buy
ing for investment, and that some day the bubble
viii burst, and everything viii fall ten or twenty
per cent. These, so far as we can gather them,
are the arguments on which the bears rest their
hopes Of success.
On tic other hand the bulls apprehcnd no dan
ger rom the possible success Of Mr. lincoln. It
might affect the trade Of parts Of the South and
that ofNorthem houses trading with the South.
disturbance in South Carolina would probably hurt
the credit OF Charleston houses and Of their cores
pondents here But Il Is not believed that ii would
make any difference to Northern houses or Northern
enterprises. A. to dissolution Of tie Union. no
one, except the bears seems seriously apprehond
that contingency. Again, the bulls feel confident
that The money market is going to be easy fors
time 10 come; they argue that il money is easy af
ter a bank contraction of six millions, and after
the first week in October, there need be no
apprehension regarding the period which
witnesses the cessation Of specie shipments and
the decline Of foreign imports. With regard TO the
business Of the Western roads, the bulls say they
sec, in practical results, to believe that in
creased traffic insures increased profit. 1t Is very
true that roads like the Galena aud Rock Island
have had less 10 divide Ills year than they had be-
fore the crisis. But II must DC remembered that
the passenger business this year has been the worst
the roads have ever known. The poverty Of the
West this spring and summer-caused BY success |
sion Of bad harvests and the prosiFation Of bust
ness, consequent upon the crisis of ls57-was so
general and overwhelming that no one could afford
TO travel. Hence II is that, Notwithstanding the
very heavy freighting business which the roads
doing at present, and which some Of them have
been doing for several months, their profits are
small, compared with those which they used TO
make before the crisis. Now, the bulls argue that,
this wiatcr and next spring. passenger traffic will
revive on the strength Of tho profits Of the ne crop
Of this year, and that the railway receipts will
consequently probably show. In 1851. larger
ratio al increase over lsGO than 1850 shows
over 1889. In the meantime there are some prac-
teal facts which the bulls find II difficult to
reconcile with The theory tha. the increased traffic
from freight is not profitable. The Rock Island
and Galena without passenger tTaiHs-boih show
q fair dividend for their stockholders: the former
ought 10 have paid SIX per cent this year.
The Illinois Central Is this year earning money
enough 20 pay the interest on IT, debt leaving the
income nom ~ lands urtonched. The Michigan
Central Is paying oa is funded, the Michigan
Southern It's foatug debt The floating debt Of tie
Toledo. now reduced TO about $500 viii pro.
baby be paid OF in full before Isl January. The
Eiie i paying H. overdue coupons. Quite mum.
bor OF roads, which were considered broken and
bankrupt are steadily recovering, and In enc shape
another arc about TO try 10 regain public conf.
douoe. Such arc the Cleveland and Pittsburg The
Mississippi and Milwaukee, the old la Crosse, the
Chioseo and Northwestern, &c, &c. These facts.
the bulls say, they find i difficult 10 reconcile with
the theory that she roads are making no money.
and 10 progress towards regaining public conf.
dencc