The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-22
FINANCIAL AND COMMERCIAL

Wall street, albeit used to surprises more or less
startling and b!los with sensations, was moved to
the widest excitement this morning by the follow
ing announcement which appeared In the advertising
columns OF the HERALD
Az meeting OF the directors OF the New York
Lentral Railroad company held on the 10th day OF
December, 1865, the following resolutions were
passed.
ts earnings for the purpose OF constructing and
.Rluipping Its road, and In the purchase Of real
Estate and other properties, with a view to the
grease or its traiic moneys equal In amount to
eighty per cent vi the capital stock OF the company;
pnd whereas the several stockholders OF the com
kany entitled TO evidence OF such expenditure,
End to reimbursement Of the same at some con-
tenient future period, now, therefore,
Resolved That certificate, signed By the Presi-
fent ana treasurer OF this company, be issued
70 the stockholders severay, declaring that such
tocnholder Is enltled to eighty per cent OF the
fatally with the other certificates issued under this
resolution, ut the opnon OF the company, out OF
future earnings with dividends thereon, at the
rates and times as dividends shall be paid the
hares OF the capital stock Of the cOmpany and that
Puch certificates may be, at the option OF the
pany convertible into stock OF the company, when
ever the company shall be authorized to increase
tts capital stock 10 an amount sufficient for such
Resolved, That such certificates be delivered to the
etockholders Of This company at the Union Trust
lion OF their several certificates Of stock and that
khe receipt OF the certificate provided for In these
resolutions snail be endorsed on the stock certih
cate.
Resolved, That dividend OF four per cent, free OF
government taA, s hereby declared, payable on the
10th day OF February next upon the stock II this
company, anu also upon the interest certificates
OF the company this day authorized.
The interest certificates authorized by said resolu-
tl0nS will be Issued To the several stockholders
entitled thereto ii he Office Of the Union Trust Com
pany, in the city OF New York, where the same will
pc ready for delivery on the presentation OF the stock
Certificates.
? Anticpations haA been INDUCED In some weeks
ago OF the declaration dividend by the New York
novtr al
meeting in Albany aud The election Of new board;
but no such action having been thus TAKEN after
some little disappointment the matter was appa-
fenty forgotten aad the stock, which had previously
advanced upon the runor settled down to Its former
ugure, the street phiiOsophically regarding the
promise and assurance, thus c0ntradicted, as but
one OF the many speculative ruses so frequently
fevailed OF In jobbing operations 1t appears now
that the recent movements Of the Erie Railroad
direction towards sAe establishment OF q through
erunk line TO the West under their control,
pf which the lease Of the Atlantic and
Great Western Railway was only . part, the
lease OF other and connecting lines, already consum-
mated or in contemplation, forming additional
Jinks in the chain, stimulated the enterprisng and
able head OF the New York Central management to
seek similar privileges In order not to be behind
hand In competing Tor the immense trafnc sought to
~ secured. Win lhs view 1t became important
the differences which existed between the roads
controlled by Commodore Vanderbilt and connect
ing Western lines should be adjusted and terms OF
compromise having been arranged as means OF
giving ecldt to the matter, and 1t may be, aiding in
sts satisfactory conclusion, 1t was decided to make
distribution OF the surplus earnings OF the Central
eoad, which was accordingly done In the manner
above set forth.
The exact terms OF the convention entered Into by
Commodore Vanderbilt and the Western managers
nave not yet been made public, but they are said to
include an arrangement whereby the right OF the
western men to establish rates Of freight-which the
Central, Harlem ana Hudson River will pro rate Is
eonceded-the settlement OF bridge tolls and terminal
charges and insurinx full connections to Chicago
giving Mr.. Vanderbilt commanding influence In the
contest for proponderance in the railroad interests
OF the country long progress between him and the
Eric party, besides securing to New York much or
me traffic now diverted to other points
The meeting Of the New YORK Central directors IA
said to have been held late on Saturday night; but
however that may have been, the matter was kept
profoundly secret and only those In the ring had any
suspicion that any such action was contemplated.
The consequence but little OF the stock was In
ether hands, and when the market opened this morn
Zig the price, which lad closed on Saturday night
l3S4 to 1884, sustained sharp andvance 70 185. Il,
however, declined soon 70 16l and subsequently
exhibited the following nuctuations:-l6l, 1872,
z5o. $50. 157, l55, 1854, 152, 152H 1867 157,
15Sk, l54 1851 ISL, I52 l50k. At the first open board
the nrst sales made at 15lK, and others Is fol-
lows:-162 l5lts Isl, l5ox, 15ok, l5Ok, 15lk, 151K
pnd 1917, the stock closing at 15lx 152. Between
this board ana the rst regular board, the report
Mat legal proceedings instituted to prevent the
tgsue OF the scrip dividend, extensively circulated by
me Shorts who were In despair, the price broke to
14oh. but on their attempting 70 "cover' rallied
again to 1871 u. and quoted at the close of the
0rst regular board at Isl q 151k The great
est excitement was exhibited both in the
boards and the street, and the price Of stock rose
and fell like the waves Of troubled sea, changing
- rapidly. At the second open board 1t was quoted
et l54t 154k, while at the same time under the
bear pressure exerted upon In the street. it fell to
16l and subsequently to l5ok 1soK. closing in the
last regular board AZ 1904 161h, and the excite
ment somewhat subsiding, continuing within that
margin until near the close Of the Long Room, when
= again advanced, and finally closed on the street.
pt quarter TO SIX O'Clock, at 154H bid the last sale
being ut 154.
Application was early made at the once OF the
Union Trust Company for the certificates, It being
apprehendcd that an Injunction would be sued out
70 restrain their delivery 1t will be borne In mind
That the directors are already enjoined against
issuing any additional stock and the present issue
Of scrip Is regarded IN some quarters as equivalent
TO an evasion OF this injunction. 1t Is however,
stated that another injunction enjonng the issue OF
The certificates was TO day granted by Judge Bar
nard; but could that II had been served
We learn that some fourteen millions OF stock has
hlready been presented, upon which such certificates
have been issued.
What the future OF the stock will be Il Is
impossible to determine. The suddenness OF the
announcement OF the dividend OF course had Its
fnect to-day In Causing the very considerable ad
vance and the excitement thereby occasioned In
Sustaining 1t. Eariy Ia the day the open Board Of
Brokers adopted resolution directing its executive
onicers to confer with the regular board In regard
10 calling the stock dividend. When this Is done,
in comprehenson OF the virtual heavy watering
bf the stock which the addition Of scrip to the
amount OF 80 per cent, presumptvely CONVEX.