The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-13
FINANCIAL AND COMMERCIAL.

Y
davis rst hoard and was afterwards heavy and irregular
TIL the close lis tendency then being decidedly dropping
visible dsrust among both brokers and mere specua-
tors checked the volume of business and duness, as
matter of course favored lower prices This feeling OF
prebenson was mainly owing TO the cratic movements OF
some of the bull cques especially the Prairie du CHEN
scorner which caused prominent and several small
failures and weakened the financial standing OF other
houses No member Of the regular board failed on his
contracts, however. The money market at the same
time became more active chiefly in consequence Of
lenders submitting stock collaeras and speculative
brokers to strcter scrutiny. The bears prohted by
the unse ed condition things to put out fresh line
OF shortsu and this assisted the downward ten
dency OF the market for the time being. On Satur-
day there large sales to realize, and
Michigan Southern particularly depressed. under
vague that the conversions Of the guaranteed stock
into the stock Of the company, going for
ward will overload the street and lower the price OF the
stock. There Is about 81 $50 900 OF the guaranteed
stock outstanding, and the holders of this have claim
against the company for five years and seven months
back interest," extending years subsequent TO 1870
The total interest IN arrear with interest on interest
added, is equal 70 about seventy-four per CENT
Several writs brought against the company
two or three years ago for these arrears ana
decided in favor of tho guaranteed stockholders
In the last report OF the company, dated March
l. 1855, the subject Is thus referred To- Dimcun
questions have been pressed upon the consideration OF
the board by the claims Of large number OF hoders OF
the guaranteed for back dividends under the ob
cations that contended created at the period
Of original ISSUE guarantee yearly dividends OF ten
per cent Under this pretext there Is default OF over
Ave years interest on said guaranteed stock prior to the
time when the present admins ration paid the first dvi
dend on said stock" The company is willing to settle
oiI In taed stockholders
IL 40 per cent in common stock, and thirty-fve per
cent in cash for each share of guaranteed
stock Between and eight thousand shares of the
guaranteed stock have been thus far converted and the
conversions going forward rapidly This will be for
the ultimate good Of the road but meanwhile it increases
the amount of stock in Wall street. and exhauss
the cunen, funds OF the company, which might other
be applied to the payment Of dividends This i'm
med influence, together with the nordinately high
price at which the common stock selling in the open
market is unfavorabe Should all the guaranteed
stock b. converted the terms proposed by the COM
pany it win add nearly thirty thousand shares to the
common stock and involve cash disbursement in ad
dition of nearly eight hundred thousand dollars
II was stated Saturday that the Erie Railroad Com
pany paid Mr. Drew 81 900 900 and withdrawn IA 900
of the shares Of its stock hypothecatcd with him.
II this true to be, it affords conclusive evil
dence that the direct statement made In his interest
some time ago that he had bought the % 900 shares
referred to at par, less the dividends from the
time OF hypothecation, was falsehood. II is not i'm
probable remaining 900 shares will be taken
up the company receives the balance of the
proceeds Of the recent loan contracted in London.
The quotations for OF the leading stocks at 25
p NJ on Saturday were:-New York Central, 954 90
Michigan Southern, TAX 4; Cleveland and Pittsburg
924 923S Prairie du Chen quiet the only report
cd the day having been at 150 at the regular
board The argument for dissolvng the injunction
obtained by the cornering party against the company Is
for hearing before the Supreme Court to
row. and considerable interest is manifested the
result
The Milwaukee and Prairie du Chen Railroad Com
pany organized January 1881 and 10 the
OF the Milwaukee and Mississippi Railroad Company by
purchase Of all ts rights franchises and entire property
at a judicial sale made January IS, 1851, Ave
judgments DEGREES of foreclosure by the Marshal Of
tho United States for the State of Wisconsin, pursuance
OF the orders Of United District Wis
consn The property embraced two hundred and thirty
five miles Of main track and twenty-five miles OF side
track the road extending from Milwaukee through Mad
TO Prairie du Chen the Mississippi river and
from Milton, the main line through GAINESVILLE, in
southwcstery direction, to Monroe The cost Of the
property the Milwaukee and Mississippi Company
reported December 81 1852 to have been S. 1875 $50
The earnings Of the road ranged from $3.50 474 in 1855
to $7s9 SAL in $780, the expenses meanwhile
ascending from 81 to SO per cent. In 1894 its
earnings including the recent extensions, had
risen TO 81 723 $751; and It's expenses to ST. 2o6 $50
Its debt OF s44s first mortgage sinking fund
bonds preferred scrip stock frs: preferred full paid
stock preferred stock and 073 OF common
stock-the total debt being about millions and
quarter The first preferred stock bears interest at the
OF eight per cent and the second preferred at the
OF per cent par The bonds bear per
cent interest and are secured by mortgage trust
deed upon all the real and personal property Of the
pany. This contains provision for a sinking fund.- by
which the company obligated to pay to the trustee
named In the mortgage their SUCCESSORS
follows (vde the Articles OF Association OF the compa
ny)-"Such sums OF money shall amount to the DIFF
1904 $50 and the interest for each year
the outstanding mortgage bonds; this amount to be
paid in equal sums, may be. on the LIST OF
April and October In each year, commencing DC
tobcr 1882, with the payment Of $4,000. The
trustees shall Immediately after any payment is made
them, designate by lot many OF the bonds as they
have money TO pay to which the sum received by them
shall be applied in payment" The bonds in question
convertible into the first class preferred stock at
time within ten days after dividend has become paya-
BILE. The contribution 70 the sinking fund thus pre-
scribcd takes precedence Of the interest the
preferred stock, and cannot be evaded. But Of
tho arguments Of the common stockholders is that
they entitled TO twenty-five thirty per cent OF
back interest," the money that should have been applied
TO the payment OF which having been appropriated TO
the said sinking fund for the reduction Of the bonded
debt, and on this ground they claim right to vote
But sections four and eight Of the act OF the Legsla
ture OF Wisconsin authorizing the transfer OF the
Milwaukee and Mississippi road 10 purchasers distinct
ly ignore the right Of the stockholders to vote
until the capital stock Of the company 'shall have
been reduced TO six millions Of dollars and shall have
showed dividend that any one year equal
70 seven per cent Dividends shall then be declared on
all the Of the company" The preferred stock.
holders Of the FIRST and second class continues the act
sshall elect tho directors under the organization
iii dividend shall have been earned all tho preferred