New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-12-18
STEEL-RAILING LAKE SHORE.


SIR: Had not your correspondent sphinx"
become muddled, that he could not continue his ex
plorations concerning the cost OF "steerang the
Lake Shore and Michigan Southern Railway. he would
have discovered that steel rails" Is capable
Of quite variety of definitions For instance. he would
have learned that in S,3 at the very time this Company
was Offering its own Sinking fund mortgage bonds at
% less purpose OF completing the steelrai
ing Of its road it adding to its permanent steel
investments az follows, TO wit:
400 Bonds of the Lake Store aud Tuscrsvas VALLEY Rail-
POO Is ond Of the Mahonne cos Ri:d at par 100000
10 Bonus the Cu Wabash and Mica Railroad at par l5o0o
To nvemen for 1873 in this kind Of steel" 900
That the foregoing solid Investments are likely TO
prove as "perm inent" and durable" as tho genuine
steel rails" cannot be doubted for fluid that the
Like Shore and Tlscarawas Valley" Company de-
faued in the payment OF its interest on Aug 1874 and
although the stockholders have been appealed to
to come forward and relieve the Company from Its
Temporary embarrassment (here has not been a
financial embarrassment within the past eighteen
months that was not temporary they have thus far
been remarkably backward in so doing. The "Mlhonng
Coal" Railroad only completed IN May lS73 with
capital Of slO5O00 ani bonded bebt for s0T5,oCO
The road leased and operated By the Shore and
Michigan Southern" Company, receiving as Its rental ~
Der cent Of its gross earnings. For Its first nye
months business Che latest published reporU its
proportion 40 per cent? amounted to tll927, or only
ri1e onehird of the amount OF the aecrung H.
terest its bonds for the period This latter road
must be a Of immense profit to the l. Ike Shore
Company operating it, as does, for 60 per cent OF Its
gross earnings while it cost 68 per cent 10 1873 to
operate its road IL certainly great stroke OF
"steerail policy on the part Of the Lake Shore Com
pany to sell ITS per cent liabilities at or 10 per
discount in order TO the foregoing valuable
aud permanent" investments at par. Except that
"Sphinx" maht follow the example Of his great
heather mother should we entirely solve his riddle, we
would and give other definitions to the term steel
rails" but having given him cue, we will In turn pro-
pound for him solve, viz: How there be
doubt about the payment OF dividend by the Lake
Shore Company next Februarvf
the 3s December 1873 It's floating debt s5 1923 s72
December Liabilities payable In JanaaIy. l45OOiS
Total floating debt .....SooJ44ZO
Now, according to The Fancia! Chronicle the changes
In It's bonded debt Dec 81 1873. to Dec 1874 have
been follows. viz:
First Consd Sinking Fun Mort Bonds 1870 $500 600
Consolidated Mortgage Bonds l973... 9336OOO
Total IS 1856 900
"Cleveand. p. and Ashsbuia" Special Mort.
gage Bonds due Julv. 1S14............... S5O0,OOO
"IaAe shore" Dividend BonIs Of lsr9...... 54.UO0
L. s. and NJ So Sinking Fun Of ls69...... Al 900
NJ SO. Sinking Fund OF l512... l676OOO-26il
Total increase OF bons $6l95OOO
Deduct tn, A1auns debt Of Dec. 81 1873,
Less November 1874 liabilities, payable in
December, estnatd ACKNOWLEDGEMENT
Total increase of s5i0,579