The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-05-11
FINANCIAL AND COMMERCIAL.

As the greatest State trial OF modern times an.
proaches its conclusion Wall street turns its eyes to
the Senate at washington, and the gold operators
begin to make capital out OF the prevailing uncer
tainty and suspense by specializing for rise 1t il
not probable however, that either the acquitta or
The removal OF the President will exert any impor
ltant in fuence upon the price of gold or securities
but for tn time being the suspense is favorable to
speculation for rise in gold and to stagnaton on
1.-The Stock Exc fange. The fluctuations In gold dur
ing the week wen nom 1895 to 14o and the closing
quotation was 14O1 = lAoH The shipments Of specie
from the port aggregated saese,aso, and the receipts
Tor customs duties were $2,2s3,625. The Sub
Treasury disbursed $a,eiaoG9 In payment OF the
Nay interest on the public dsbt making about
eleven millions since it became due. Owing to the
arge floating supply Of coin and t fact tGs' ~ July
another large amount Of interest tie public oeos
Falls due 1t Is not generally believed that there WI
pc any considerable advance In the premium rom
me present point; but the speculative temper Of the
market is, on the whole, bullish. 1t Is, however,
Fable to change with every current OF political
opinion, and the bulls Of yesterday may be the bears
Pr tomorrow and vtce versa.
Government securities were in active speculative
fnd investment demand throughout the week, and the
tendency of prices was strongly upward, the closing
Quotations being u higher than those current at
n Pie German bankers for the smaller denominations
the ve-twenty bonds Of 1862 and 1865, which looks
! IKE revival Of the investment demand for small
\ mounts on the continent. There is q demand for
I'M 9 also from European travellers, who take them
IN eference to letters Of credit. The domestic in
Ty " mainly for the later issues Of fve-twenties,
lind especially those Of 1867 which carry accrued
hterest since the LIST Of January 1t is expected that
new bonds Of 1868 will be ready to be exchanged
seventhirty notes after the st Of June and that
|Nlley will be issued without the July coupons. The
upterest dsbursed by the Treasury Is being largely
Harvested in United States stocks, and from the ex
|Hent of the demand from the outside public and the
Mpmewhat limited supply of bonds in Wall
ntreet further material Improvement in
|ilrices is likely to take place. But little
\ bore than half the amount Of the May interest
\ as yet been dsbursed by the Treasury, and the
throwing monetary ease is stimulating purchases for
he employment of capital by parties who would not
.Renture among the pitfalls Of the Stock Exchange.
the close the market was strong at the advance.
The railway share market dull and unsettled
Turing the week, but there an artificial move
lent produced by certain parties in some OF the
esern shares, and particularly those Of the Pitts
Iurg, Fort Wayne and Chicago Company, the price
which advanced more than three per cent under
lerey speculative influences although it was pre-
e list. The policy of this company-and we take it
Y an instance which will serve as an Illustration Of
E)w other companies are managed-has been to pay
larterly dividends of two and half per cent as
ell as the interest Of its bonds by selling new
ocI, and by its last annual report it appears that
sold fifteen thousand shares OF stock for S1,2l6050
ring the year 1887. while 1t paid in dividends only
,034,375 IN this way the stock has been increased
I've millions within six years without the addition
mile of the read, the amount Of the capital stock
II the 3lst OF December last having been eleven
lions and half, while the bonded debt was
~ 563O)0, and other liabilities swelied the total to
,s 2se, 267. There is nothing either in the present or
prospective condition of the company to justify the
rectors in constantly watering' the stock for the
Ike OF making these dividends, and they are thereby
determining its real value and paving the way to
innate disaster for the sake of subscribing specu-
tive purposes. The earnings Of the company in
81 s225,091 less than 1866, OF which ss2s oe5
as in freghts-namely, in the local business,
,3O7, and in through or competitive trans
irritation, $5S,65s. But Notwithstanding the de-
ease in the receipts the tonnage carried in
leased 12s573 tons, the main cause Of this
ling the competition between the lines leading to
Atlantic seaboard, and the consequent reduction
rates. The train mileage of the road in 1867 was
,,'2a GOs miles against 4574,2o4 in the previous
arr, and the gross receipts from all sources were
2i2 125 or at the rate of 81 SO per mile run-a
Sufficient to pay expenses and which compares
Try unfavorably with other Western roads. Thus
Rock Island Company reports its receipts per
lie for freight trains to be So a. and for passenger
ains 81 IS, while the expenses 81 "a per mile.
ZEN the Milwaukee and st. Paul Company, which
Us no regular dividends, reports its freight earn
Us to be So rs per mile, and its passenger earnings
As, while its expenses are 81 SO per mile.
her Western railways show similar results,
Fort Wayne presenting the worst exhibit
all the important lines. Yet its direc-
Is have been deluding the public into
lying It for investment by declaring dividends not
srranted by the earnings justified by good
licy. The Atlantic Mail Company in like manner
d ten per cent cash dividends on fictitious basis,
II the result that 1t far Impoverished itself,
thus sluanderng its substance, that its stock fell
bm nearly ninety TO twenty-five in a single day.
G holowness of the foundation on which sucn
cks rest is obvious and therefore those who have
en- dccoycd into investing i'm them by false pre-
ices will DO well TO inquire into their real value,
they are liable to give way g; any tine ana IL
I've wlde..s and orphans and oiner investors IN
catastrl.ac. It Is high time that The fragrant
smanagcmeft which is too common feature OF
,way companies in this country should be ex-
sed and that the gross abuses OF which stockhod-
have good reason to complain should be corrected
the force Of public opinion If nothing more.
has been rumored for speculative effect during the
few days that the Fort Wayne Company does
contemplate the sale Of any more new stock,
it Is obvious that in this event it will have TO
spend dividends entirely or declare scrip dvi-
dds only, and to adopt the latter policy would be
20 from bad to worse On the 18th Of last month
difference OF railway stockholders was held at
nchester, in England, for the purpose Of suggest
and promoting improvement in railway manage
mt and the laws relating thereto, and the result OF
r deliberations was the adoption OF series OF
olutions in favor OF separation of the finances Of
N company from its general management by ap.
hitting an executive board Of salaried directors to
mage the road and giving the remaining directors
Elusive control of its capital. 1t IL questionable
viewer, whether this would correct the msmanage
mt complained Of there rs well as here, but IL ia