, 1869-02-09
FINANCIAL AND CGMMEEG{ASr
MUNET AIRY.

Mo:pAI EvLN1No. Fe,.s ;.
The process Of watering stocks according to
law IL thus explained by Mr.. Jay Gould, who has
hrcu before the Investigating Committee Of the
New York Legislature. Under the General Rail
road Jaw ef that Sis'e, these IL u provision that
Directors OF companies may tssun convertible
hords to ratee money to equip and run the roada
under thcir infringement. This provision being
tn.ctdca to aid companies that were without the
rneana OF 20 doing. but nccoEdtp to Mr. Gould's
testimony bonds Of this Kind have been issued
,,s The KsIt Company, and afterwards turned Into
stock, 1t Tine when tie road WAS earning <i5,.
ie0.0l0 year. He lusttnes the watering OF tho
following score, ard glances at eome o.bcr IDEAS
that In this connection arc Ct the grestest interest
10 the West:
thai Rad fared The Erle Railroad. Hau 1t no.
been for ttst iss, ,he road wonla long $50 have
S,sic wond have had esddled npoa !, the great.
Get monopoly the world aver saw. Ooee yop put
The Erie and the Central under the same control.
! the Pacific. Ocean, aud thcy would control the
prices Of ~ Western produce ID the New York
| maEkcs; They could make aaus IS hs1rel one
the ecaboard 'oF the rapidly increasing products
Of slt West, IL said. were the Scw York Gen.
tss r.. E s9S IL oesI ossenaa5a az. ,a S;5
aged exclusively tn the interest OF Phl1atcl-
ph,a; It's Directors had occuiy aeowel their In.
I ltl1&U4 " VI LII t04lS HuME. ~ lultA uG
teiphta and break down SeE York, and IN this
intention they had the GO operation ana support
Of the Legislature Of Peausyls .u,s, wa1sh wts
crcr aty to enact any las which the railroad
qaifcd to caTS cut tne os'i>et, T1es bid already
| diverted tho bulk Of the suEar fca1inc business
rsss g sa9;y aSISa; e ~ sis s1s hs
The OILY ssfety o. the puallc lay IA keeping
these three e:ca: ps:ael i,ees scpass:e. and pre-
| rarpbsll. t*ked Nj. Gould whether .h'sc was Eut
ato rsErcr to tn. public interests in the prac:iec
| TOW ireya1irg wtih those Large cor2oEl.ions. Of
roa:t, whca the present j. +. Ter hitting them 10
l Increase raer esock dt titItum, enabled them to
c. He ts'd he teous1, not 70 lG;s =, IT, tnFes
cotte nIder one sntrol. Fne rivalry and conpe-
ulon between them, he thcucht, would be ample
| In answcr to IN tcgplry as to how far we.. tho
b. rid ibst when ne went into lie ao:ra 1ns Eric
whatever, Int that the!r connections non cx
ttnded 10 st. Louis. THY had honcd before this
10 h1yc tatc1 IN Chicago, n0t had nos 5c1 ane
cesasd.
We've oltte nlslu9s.e etf:tt Ct The modern In
cara! interest. Ae believed ih.t The rsi,rosd
would ultimately, tnd 10 4 very lev ye1s, u,
up Ill tic cu1als in the coaatty., Freight va
: freight row went b. :hs z2ilSsa3s. sud, wess hi
road prntided With The rtcesea'y eqlnpmeute. b
wsu1e !iks no better fun than to run comp=titto
a
djtf sulty with the Eric and other roads was tn
crease their rolling s,oct fast cnough to keep 4
try. Tnreo ought to he ii ica.t hundfcd new ie
! coDostyre and two thouaaud Cars added to II
El1e Rs,'road evaTy 5eat."
The New York Herald which. IN several OF i.
, 1umhc,a last week, tfca TO get up an alarm aao1
The life Insurance conpaLies Of thai city. his I,
? eoltl1tutly backed out from making any OF It
ex,osIrrs wht,h II thrcAtcutd IN such AublEuot
. terms. II rrda It has been outfrclJ zstFag, b
4 | rays: "Daf purpose hss simply been to va,
y tbe people a9airtt bogus concerns Of tEaA ea'
brr. whose only object seems to be 10 sattcn upc
The public credulty," ard With this p1slApIu,ol
c firE bivlrR nascs referred to. Or htnted 1t, II
oneccmpany, runs away from tho man OF s.1aN
had act up to hght, and out Of which It prob,b
" expected to realize considerable "hdverttsIl
- | patronage"
=. Local money aGairs remain just about ~ Z
nv ueea A. VIC esote Of The week. Tho demand
q neneJ - acuse ont not pressing. and tho attlri
- 10 hnoft Exclusively Of q speculative ebatsc.s
~ Legitimate tssde. In nearly all II, branches.
!, vesJ quict, and though merchants a.c no, rnak
=, vcfy satisfactory collections In the countrv Il
il. now. theJ hare bpt little Ea.tern ,ndcptednt
Is falling due, af this rcason. and arc In want
= comparatively Nttlo accommodation trou,
III banks. Grain acu provision opcratoSs cont,r
to be The principal borrowers, and u prices
( The latter pastitulsr9y-have kept adS.nsal
moro and more monuy has been
sorbcd in tho amount held b
he en- speculative account, uru
.Is the bsnks whoee customers arc nearly all In L
'ty lina Of bus,ness. money Is tight, and they
hi unable 10 meet the applications LOT ioHSef
at commodAton. Vhtln In The general market tn
ts, ia ouly medesxte demand for money.
re. The currency 1unvstnent betrccn Ito eltJ
Ct county is Hight. aud being about equL in C
.es direction, Indicates only light produce nc
OF meal In the country as o1c Of tie mt cdec$