The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-20
ENGLISH OPINIONS.
A Phase Of the Granger
Movement.
The PENDING WESTERN BATTLE.
Iovlcw Of the Financial Events Of the Week
Money, Gold, Stocks and Bonds.
WALL STREET, l
SyyNDAY Anril 10. 1S74. [

policy OF Congress- is disturbing the faith OF Euro
pean capitalists in American credit. During ths
week we published significant extract on this
subject rom leading London journal. Further
examination OF the English newspapers shows
that the opinions therein expressed are corrobor-
ated on all sides.
1t has not been unfairly observed by an English
writer that nlne-tcnths Of the undertakings pre-
scented N Europe from America over recent years
have been projected in districts more or less re-
moved from the great centres OF trade and capital
and where the people to be benefited by being
brought within reach OF markets have not sufficient
capital to engage in the building OF the roads, or
even enough TO represent anything like guarantee
for bonded debt to be created, in the shape or
paid up share capital; and 1t is patent fact that
little, II any, money has been obtanable from
American capitalists in aid OF any such tentative
and
SUBSIDIARY ROADS,
There has always been sufficient inducemept,
however, Tor those locally interested to press in
spite Of all difficulties and by degrees q business
system has been organized, the essential features
and conditions OF which are in manner Identical
all over the States. nucleus is formed of owners
Of!and through which the line is to pass, OF smart
business men from the townships, and OF law
agents and Others who, either OF themselves or in
combination with
PROFESSIONAL AGENTS
and railway contractors, DO the initiatory work or
getting necessary legislative power, and, sub
scribing nominal large amount OF share capital,
they then provide among them funds enough to
grade" and, In some cases, complete certain
small extent of mileage OF the line contemplated.
On this somewhat sandy foundation a superstruc-
fure Of bonds created under "frst and only
mortgage" OF the projected undertaking is erected,
TO an extent which, at par Will be found, as
general rule, to represent about the cost Of the
road, the discount and expenses on same being in
the rough about rne sum contributed by the pro-
motors or lett floating debt to the chapter OF
Academia The bonds are exported to Europe by
some gentlemen OF address and business manners,
duly accredited by power OF attorney to act the
directors and contractors, with all necessary seals
Of the company. attestation OF signatures and the
usual attractive symbols. prospectus is written,
emitting VI least none or the great advantages,
PRESENT AND PROSPECTIVE,
~ the undertaking in embryo, and proving how
the income Of the road, when fully in operation,
must yield handsome dividend to the shadowy
stockholders after satisfying the interest on the
mortgage debt. BY some such process now
sketched-the illings In and results OF which many
IN England and on the Continent can readily, no
doubt, supply Tor themselves-nany millions
worth OF bonds, secured over railways whose very
name and locality in many instances are quite un-
known, have been spread broadcast over Europe
under the temptation Of high rates OF interest,
coupled 30 far as the investors led at the time
to suppose, with adequate security. Subscribers,
N Iact 10 bonds such lines are simply
invited to provide the money required to build
them and to take all the risk OF loss, while any
possible profit will go to so-caled shareholders
who have risked really nothing, and to wnOm also,
IS standing in that capacity technically on the
stock register Of the company, the whole control
and management win belong. s8
THE PEOPLE
Of America, however, are beginning to show less
disposition since the panic to take stock in the
securities OF the smaller and improved lines
There s less loating capital and more uneasness;
less desire to trade on the possibilities of the iu-
ture. and more purpose to apply surplus money TO
the development OF industrial enterprises; less OF
what may be den0mirated purely specua tive
spirit, that assumes risks in wildcat ventures and
more OF that dependence on solid undertakings
that promise certain results. Panic imitation and
the depreciation OF greenbacks have superinduced
caution, and caution leading well up to healthy
financial conservatism in all business circles.
THE WESTERN BATTLE.
The recent action vi the Legislature Of Wiscon-
sin in attempting to regulate the freights coming
from or going TO any other State, anu dividing
railroads into various classes. and discriminating
In favor OF the other bids lair to cause the
hvefest contention. IL is not the first time in the
history Of commerce that statute law has sought
to overturn the natural law OF trade and 1t Is but
natural that State should initiate the purpose OF
Congress, which body seems bent at the present
moment in an endcavor to make water run up
hill. The operating expenses OF several OF the
western roads that will be affected by this legisa
inn We n q
per cent Of their gross earnings. The question
naturally arises where the profit will come in
under the proposed arrangement whereby in
terest is to be paid on their bonds and dividends
are to be paid to the stockholders. The following
statement fairly describes The situation as 1t VIII
exist after the LIST Of May
The railroads in class comprise all lines Oper-
ated by the Chicago and Northwestern and the
tAbllshed vary Tor every twenty-five miles up to
$50. On grain they are from twenty TO twenty
I'VE per cent lower than present rates. On nour
The reduction ranges IRON thirteen to twenty-five
per cent? on lumber from twenty-three to forty
per cent on live stock from eighteen to thirty per
cent: on agricultural i'm IMPLEMENTS from thirty-one
TO forty three per cent; on COAL brick. &C., from
thrty-sx to forty-iOur per cent, and on coal, per
CARLOAD, from eighteen to tMrty-hv per cent.
The bin lurther declares that any railroad refus
Ing the rates prescribed shall not be entitled to
compensation, anu any parties rendering legalized
rates shall have power to repevin their goods
The first result OF the bill will unquestionably be
ltgation but this is
PLANT OF SLOW GROWTH.
Tne second Will be an open WARFARE on the part OF
the great lines running through Wisconsin to pre-
vent, II It be possible, addition OF thirty per
cent 10 their present losses and the practical de-
strncuon OF valuable property by this curious
state action. Hence 1t is the determination, we
are informed, Of the Chicago and Northwestern
and the Milwaukee and st. Paul companies to dis.
regard the law, and, II necessary, to close ticket
ana ireight onlces in every locality where an at
tempt Is made to enforce its provisions This
WI, naturally produce an issue between the peo
pie, the railroads and the Legislature. and the
Evil may eventually be followed by a healthy re.
seton.
THE MONEY MARKET.
The average course OF the call loan market dur.
ing the week was not materially changed. nrdi