The New York herald., 1874-09-14
YORK HERALD MONDAY H. SHEET

usual recurring realizarons; indeed 1t is not to be
wondered at, the spectators having had so little
chance OF profit for months past, that when
they see a small margin they should gather
it in, but on the whole the tendency
was to higher prices. The grangers are helping
their proclaimed enemies, the railroads, In their
present policy OF holding back Stocks as, If they
delay much longer we shall have reached the close
OF canal navigation, and they will be necessltated
to give their business to the railroads at whatever
tarin OF freights the latter may choose to impose.
1t is be hoped, however should this event occur
that the railway managers will bear In mind that
they nave larger interests TO be served by carry
ing grain freignts cheap this year, so that we may
be enabled to market our surplus crop at paying
prices, than the paltry profits they might derive
from neecng the granger who has placed himself
in their power. There are no interests IN this
country more clearly identified with or more
closely dependent upon general prosperity than
the railway interests OF this country. This should
be regarded by them as an ''on'' year, when they
would lend themselves to aid the revival OF indus
trial activity rather than lay burdens upon it. 1t
Will pay them to do so. During the week
THE STRONGEST AND MOST ACTIVE STOCKS
were western Union, Union Pacific. Lake shore,
New York Central Rock Island and Pacific Mai.
The Improvement In which ranged from 4 to 81
per cent New York assumed something of its old
position OF leadership on the bull side upon the
declaration OF the usual half yearly dividend OF 4
per cent. accompanied by the statement that
hereafter quarterly dividends would be declared
as "of course" On the other side OF the market
c. C. Il I. c. LED THE BEAR COHORTS,
going Off to s. which Is only something better than
Boston, Hartford and Erie. The mortgage securi-
ties OF this road were also affected, the first mort
gage bonds which used to sell at so to 81 selling
Friday at 10, and the second mortgages upon a
default in the interest, going on rom about so to
23 AS there were various stories ahoat account
ing for this furry and involving other roads we
were at some pains to collect the exact facts
which produced such rapid depression OF G. G.
l. G. values. In this connection we have learned
that in 1871 lease was executed by the G. Z. and
L c. Company to the Pltsburg, Cincinnati and st.
Louis Railway Company, conveying all its property
and franchises to the Ptttsburg Cincinnati and st.
LOUIS Company, the latter company agreeing to
pay rental thirty per cent OF the gross earnings
to the former company, guaranteeing the same
should be sufcient to pay the interest on the first
mortgage bonds OF said company, amounting to
about $15, 100000. This has been done up to the
present time Recently
AN OLD CLAIM
against the Richmond and Newcastle Railroad
Company, which forms part OF the leased prop
erty-a link of twenty-seven mies--has been de-
clded by the United States Circuit Court OF Illinois
in favor OF the claimant, holding it specific lien
paramount to the first mortgage bonds This
claim s to the amount OF $500 900 to $780, 900. On
the 1st OF August last the q. G. and ]. @.
Company failed to pay the interest on
its second mortgage bonds, amounting to
about $15,OOO,OOo, $5,OoOOOO Of which is a
lien prior to the lease. 1t appears now that the
lessee he Plttsburg Cincinnati and st. Louis Rail-
way Company has asked Of its lessor &C., G. and l.
C) how the latter proposes to protect the former
against this judgment and the consequences of
the default in the payment OF interest on the
second mortgage bonds, taking the position that
until some satisfactory adjustment OF these mat
ters Is made it is unwilling to make any further
payments on account OF the lease. The Pennsyl-
vania Railroad Company Is the guarantOr that the
Pittsburg, Cincinnati and st. Louis Company will
perlorm all its undertakings under the lease, but it
is In no way liable until default on the part Of its
principal. Thus the matter stands, commentary
upon that overgrown spirit OF ambition which
seeking consolidation overreaches itself IN absorb
ing lines too hastily and without full knowledge
OF the responsibilities thereby involved.
THE EXTREMES OF THE WEEK.