New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-11-06


,nrotest: that Col. Thomas A. Scott was en-
barrassed; that the Pennsylvania Company had
passed its dividend; that another heavy rail-
road defalcatiOn mad been discovered; that
Bischofshoim & GOldschmidt the London bankers
of the Erie, and Atlantic snd Great Western and
ether American railways, had failed, and that there
was troublein q certain national bank. All these
rumors proved to be incorrect were satisfactorily
explained. but under their malign iniiGence the
stock market declined fTsm to per cent New
York Central touching I'd the lowest Point IT has
reached during the past month.
THE SCOTT RAILROAD INTERESTS.
ALLEGED EMBARRAssMENTs OF THE Cm1FoENiA
AND TEXAS CONSTRUCTION COMPANN-IIE IF
FRET rrPoN THE TEXAS AND PACIFIC AND PENN
sYLVANIA RAILROADS.
The main cause of the depression IN the
stock market aud Oh the publication Of the
statement the California and Texas Construction
Company was embarrassed. This Company 1t will be
observed bears practically the same relation 10 Tue
Texas and Pacific Railway that the Credit Mobllcr did
10 the Union Pacific Railroad The Construction COM
pany been stated organized for the purpose
of building the Texas and Pacific Railway, ana
had a capital OF sl0,OC0O0, of which s9VcO'OU
had been subscribed, $G0C0,0Oo called H. ana
t.O0OOO paid In cash. The SUBSTITUTES
70 this stock il understood not only haDe lor
~ '''N
balance of the S90OOpO0 stock subscribed Jhe pesons
,nterested In the Texas and Pacific also interested
an the Construction Company, but at the beginning Vi
the panic nearly all were weakened ana eone WON
obliged TO suspend. As the work OF CONSTRUCTION ad
vanced the California and Texas Company gave It's pa
por when il was deemed advisable or when cash was
not ready. Some OF this paper, asgregatns
sao0O fen due on Tuesday, aud the COM
pany bowling to the prevailing strogency' was
unable TO obtain the 10 meet its o0liga"ns Co
Thomas A. Scott President Of the Texas ana faelho !;
j. Edgar Thompson, Matthew Baird, and Samuel fei'oh
were understood be heavy ndorsers OF the Company
paper and a. they also heavily interested IN the
Pennsylyapa Railroad and other companies, II was I'm
,nodatey inferred that if they had allowed their paper
70 go 10 protest there must be trouble in the other en-
terprises with which they were Identified
Iuouiry was made Of the officials connected with the
companies affected by the rumor 1t had been reported
that the Texas and Pacific Railroad had also gone 10
protest but inquiry of Mr.. Hart the Secretary o. th
Company elected the information that this was untrue
The road had not gone TO protest he dld NOT oeeNe
that II matters continued as they are at pfeseh lh''
the Texas and Pacific Company would DO Inuch 10 eN-
tend the road. They would probably 40 hothhX un'ii
they conld obtain the money wherewlth 10 operate
safely They had not negotiated their bonds, so thai
the community at large not affected by the failure
n il had been by other railroad euterprlsos MI
Hart expected that the Construction Company would
obtain an extension. and that matters would sooH re-
sume their normal condition.
After this followed rumors OF the pecuDary emOarass-
rnent Of the Pennsylvania Railroad Company, and the
probabty Of a default In the payment OF the semi
annual dividend. This story strengthened by the
fact that the Pennsylvania Railroad directors held
,noetng Yesterday in Philadelphia, at which 1t was
expected that they wOud declare dividend, but they
adjourned without accomplishing anything inquiry OF
l. d. Randolph 4 Co. OF Nassau-St., Clearinghouse
prominent from lie connections with the PenhsyNau'
Railroad interest. developed the fact that the
COMPANY is allowed 10y the laws Of PennsJ vana to de-
clare lis last semanuua dividend in the year time
during November. and that after II is declared ihey
have 81 days in which TO pay IT, so that they might oe
rlxre a dividend the 3Oh day OF November ana not
nav IT until the JOth OF December IL was further sticu
that the Treasurer OF the Company had personally
declared that the Pennsylvania Railroad had more Than
earned its dividend and spent great dea ia INC cur
rent improvement OF the road.
From other sources learned that the figures OF
the net earnings of the Company for the current nall
wear warrant the usual dividend Of per ceut Ii is
alleged that they show excess after such dividend OF
more than 10000 But entire excess and earnings
have gone the Improvements on the line OF the Com
,auy's roads into equipment. very large amount
has been onded on the extensive improvements IN
NewJersey. II claimed that all 1.-THE earnings nave
tfen iudiciousy used but not now on hand 10 paw
dividend which, If 1t OF the usual amount womb
REQUIRE g. 100000 The officers and the directors II is
vaid decided 10 make "A OlNlntnu anu pIobhpI9
one of the usual amount, 1t having been earned,
Int IN precisely what shape IT Will be made
will in some measure depend upon the facility for rails
ing the means should there he increased confidence
and LEES stringent for money il may be In cash or
1, may be IN per cent scrip, Tedeemabe within the
year or convertible into bonds bearing per Gent inter
Get The Company have all the present month 10 deter
yuine the dividend and all Of thirty days thereafter TO
make the necessary preparations for paying H. II was
further explained that II the Pennsylvania Com
many tan ofshOot OF the great railroad enterprise
which was the lessee Of the numerous railroads through
out the country. and the guarancr of their interest
dr,idends &C. The uncertainty attending the dividend
pn tie Pennsylvania Railroad caused decline IN the
price 10 40 nj Philadelphia.
In addition 10 these there other minors affecting
the stability Of financial and other institutions, but as
they appeared TO merely the deuory gossip OF the
.,ree, and would have no effect than That OF in
hiring the institutions N question, THE TRIBUNE
trans from reproducing them.
The effect Of the various complications OF the Pennsyl
yana corporations created fear that the commercial Ell
,s which had unsettled business in New England would
extend 10 Pennsylvania and then throughout the rest OF
she country. The more conservative. however. were
disposed decry this view, and expressed beef that
NATTER would right themselves III a few days.
RUMORS OF DISASTER ABROAD.
sHE FAILURE OF TIIK ENGLISH AGENTS OF JIIR ERIE
NOT BELIEVED.
Still another important rumor, related TO