New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-05-31
NEW YORK DAILY TRIBUNE MONDAY


finances for three four years past has been quite
apparent that the concern was only sustained even
during the nominally prosperous years of 1871
TO 1873. bv the constant borrowing of money
in some form. but generally at ruinous rates.
while its employees who had to WaV V"o
or three months for their pay, were forced
to sell their claims at a discount of 10 TO -
per cent in order to keep the wolf from the door.
The bonded debt of the Company has increased
since Oct. l. 1871, $27, 995, 800 from which has
been realized in money probably not far from 3d.
O0O, 000l, nearly 81, 900 per annum and for
which the Company now has nothing to show IN the
form of new property except Its coal-heids. Ihs
being the case, it quite clear that time must
arrive, panic or no panic when Erie could no longer
borrow money, and must begin TO pay OF go TO the
wall. 1t is the opinion of conservative men that
Erie must either stop business as a railway company
OF be reOrganized upon a basis of $G0,0Oo,OOO to
$SO,000,O00 capital stock and Indebtedness, of
which least so 900 900 should be fresh capital
with which to change the gauge and otherwise pre-
pare the road to successfully compete with the great
lines leading from the West to Philadelphia and Bal
tmore. Unpleasant and disagreeable as this state
of things may appear TO the stockholders and even
the innocent holders Of the lower class of bonds
still facts seem TO clearly demonstrate that any
reorganization of the Company on basis of recog-
nizngeither the Common or Preferred stock would be
simply Sowing to the wind TO reap the whirlwind
in another collapse than the first Yet there are
undoubtedly some persons who will continue 70 buy
the stock for the same that induced the same
class of persons 10 invest in Atlantic Mail at 1920
Wabash at 20; c., c. and |. G. at 1918, and BOs
ton, Hartford and Erie. 1913, viz: because they
had fallen heavily and looked cheap; while another
class, who hold Erie, will say: 1--WE will lose the
,olo - oh howl a mar
feet right TO take This important failure has lad
disastrous effect upon the securities of other railroad
companies as shown in the heavy decline in prices
at the Stock Exchange during the week. ranging
from to 2 per cent. The business Of the week has
been the largest during the present year so far,
amounting in the aggregate TO the purchase and sale
of 2,O76, 497 shares. Early in the week Erie took
the lead in activity. and declined from q p, Its
opening price, against 223i, il final quotation
the Saturday night before. to 1914, followed by
reaction 10 1S7s after which the stock quiet be-
tween 1712 and 1Sl2. closing the week at 17Ss,
decline from last Saturday of is per cent The short
interest in the stock. which had been so large rs 10
enable holders 10 demand Is. to i per cent for its
daily use, has been gradually reduced, and on the
last day Of the week the dealings were on such
scale that there moments when
quotation could not be obtained. Lake Shore.
which has even exceeded Erie in the
amount of sales for the week, to-day sod
at j74. the lowest price at which II
sold in 1878. The decline in this stock was steady
and gradual all the week until to-day, when 1t fell
3l2 PER cent making decline for the week OF S's
per cent The causes affecting this stock. not unlike
that of Erie have been so often referred TO in this
column as 10 require repetition for the readers OF
TEL TRIBUNE. Watered stock and increased bonded
debt to pay dividends are but working out Their
Il.
natural results. Central and Hudson, III which the
majority Of people still have an abiding faithful
they have not implicit faith IN the stock they nave
il in the Commodore which amounts to about the
Same thing. since he IL tie New-York Cen
tral)-svmpathized with the general course OF
the market 10 the extent Of per cent in the decline
having sold at par while closing At 1908 all the
dividends which this company has paid have been
fairly earned it is a singular fact that the DonGeu
debt which had heretofore remained stationary or
been gradually reduced by conversion OF the con-
vertible bonds into stock, should have begun to
steadily increase from the day of the Issue Of the
famous 50 per cent scrip dividend. Tie stock soid
TO-DAY NJ % seller 30 days, Wien the regular pIlce
was IO1. which offers 70 real holders Oh The suoch
handsome profit. Michigan sCcntr2l also sui
f.rs n decline of 81 per cent only
small amount of business, selling at 63, or per
cent below the lowest price Of 1873. Rock
II
io, ~ 1O1lA a decline for the week Of per CEN.
Vev-Jersev Central. with little doing in is stock
eorlv in the week. became quite active toward the
close and records decline OF per cent since last
Saturday Del. Lack. and Western also declined
70. per cent on a small business. Northwestern
Common and Preferred and Pacific of Missouri are
executions 20 the general course OF tie market III
that they show a slight gain at the close OF 9 ana
J., ner cent respectively. Panama. owing to the
agitation concerning the apparently fral tenure by
behit holds IFS franchise, or from some otner cause
dropped from 14Oll to 122, but rallied to 100 CLOS
ing II per cent lower than last Saturday Ohloh
Pacific which has remained remarkable steady
dnrin, the late general decline, especially consider
inc its recent remarkable advance, is sustained by
the continued favorable reports of its increased
earnings The price of the stock, like the road it.
self is free from the influences which are wreckIng
other railway properties, and as result the decline
for the week is only Ia per cent. Ihe
changes in Wabash, Ohio and Mississippi, 1t.
Paul Common. and Hannibal and ST. Joe
do not call for comment. Pacific Mail, which
opened at 353a and sold up to 3|Sh
afterward declined to 32si, rallied to 34's and
closed NJ $685. decline of GA per cent. The busl-
ness in Western Union Telegraph has been large,
Amounting to over 100000 shares, and the stock
has been depressed to 717s from 1858 which was
the closing price last Saturday. In addition TO the
natural effect of generally depressed market, the
Western Union has been adversely affected by the
fact that its recent loan was not taken at the price
which the Syndicate asked for the bonds And we
see il stated that the appointment Of receiver Tor
the Erie road annuls its contract with the Western
Union Company, and thus invites competitive DDS
for the privilege of placing wires along its line from
other telegraph companies; but without any POSITIVE
knowledge as to the nature OF the Western OnlOh
+oc+ with the Erie road it is tobe presumed that