New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-07-10

stock values The litigation in the Eric case,
printed in extenso though likely TO effect other rail-
way shares only incidentally. will prove severe
blow 10 the particular Company involved. In adj
dition to this, and perhaps of mon general
importance. was the announcen%W that
another Company, the Chicago Burlington
and Quincy, had determined to conform to
the severe terms Of the Grange law OF Iowa.
There was enough that was discOuraging to holders
of fancy stocks, without either OF these two clrcum-
stances. The exposures IN the Enc case showhow
easily railway accounts may be so "doctored' as TO
deceive not only the general public, but even ex-
pets into the belief that an entirely disastrous Dus
ness has yielded profit upon which dividends may
be properly declared and paid In the matter OF the
Iowa law. and the disposition to yield to its exac-
tons, many roads that have heretofore earned
liberal dividends, and whose shares were
therefore out of the category oi fancy stocks,
may be brought down to a level with the
non-dividend securities. IL is to be hoped
however that when the case made up for the L. ,.
Supreme Court comes to be settled some plan salts
factory to all sides will be agreed upon. As the
Grange laws stand they are thought by MANY intel
ligent railroad men to be utterly destructive to the
value of all railway property that comes within
their operation. Not only the stocks in many OF
these roads WILL it is thought, become worthless
but some of tho bonds will be similarly Affected II
these extraordinary assaults are to be crowned with
success This il serious view of the case to bond
holders here aud abroad, and cannot fail to nave
depressing effect, pending the judicial deterhi-
nation of the question, upon securities 'Ii''
have uniformly paid regular dividends. 1t Is proper
to state that railway managers and their legal au-
visers EXPRESS very general confidence in the belief
that the Supreme Court of the United States VIII
not sustain the validity of the Grange laws; and
holders of the securities of roads affected by the
legislation in question will be very likely to hold on
TO them resting their hopes upon the imth that NJ
some way a solution Will be reached that VIII 90
Justice to all interests involved. Another announce
ment, of narrower scope than those already al
luded to. Is made in regard to the organization
of new telegraph company which Is 10
convey messages on what is known as
the automatic principle whose route is to follow the
trunk lines of railroad from the Atlantic to the Pa
cic Ocean and whose business is TO be carried on in
conjunction with those roads under what Is deemed
a mutually favorable arrangement.
The operations Of the past few days and partlcn-
larry of to-day have demonstrated the fact that II Is
much easier in the present condition OF railroad
property to buy block of stocks and manipulate
prices up temporarily than it Is to dispose
of the block at a profit. There IS no out
side market for stocks at present, ana
il would be unnatural if there were
with so much secrecy observed by the directors OF
large coporations as to their receipts and dsburse-
ments Bad as their actual condition may be- the
managers by this policy of secrecy give scope to an
Imagination which may picture it even worse than
it really Is and thus add disrust which the truth
might possibly help to allay. For instance, 1t was
stated in the street to-day that the earnings OF the
Lake Shore and Michigan Southern lone OF
the roads that recently discontinued the prac-
tice of reporting its earnings, for the month
of June show a falling OFF Of Sj3),OOO as COM
pared with the earnings Of June, 1873 We
do not Of course vouch for the of this re-
port though there can be no doubt of a heavy de-
crease in the earnings of this road well those
of the Central and Hudson. The stock market
opened this morning at decline of to from last
nights closing quotations and continued heavy till
midday. showinga decline of to per cent from
the opening prices. Here little rally and perhaps
a little covering caused Improvement Of to :
per cent; but 10 was only of short duration, and
with heavy sales of long stocks the market con-
tinued to decline to the close, when prices were
at the lowest point of the day, Northwest ST. Panl,
Lake shore and Wabash being the greatest safer
ers. The decline of the day. compared with the
prices at the close yesterday, follows Z. {.
and l. c. per cent; Erie. I! Central and Hudson,
Ohio and Mississippi and Pacific Mail. each = Han
nibal and st. Joseph !; Harlem and Union Pacific,
each ; Rock Island, / :; Lake Shore and Wabash,
each p; Northwestern, 3; and st. Paul, 81. The
opening highest lowest, and closing prices Of ac-
tive stocks sold to-day were as follows: