New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-16
nELARARE IND HUDSON.


sunnosed TO be not stronger than the others,
New-Jersey Central excepted, but the nforma-
ton given by the company is so meaSer and
so scattered that general suspicion, rather
than definite knowledge OF weakness,
has caused the decline Becoming conscious
that something must be done to secure conf
dence. the directors have prepared "a state
"ment," which, with palpable consciousness
that il will not bear public examination, they
propose, it is said, to communicate to stock
holders only. Friends of the company who
probably do not understand its weakness, how
ever, caused an abstract to be published yes
terday, which probably embraces the essential
points of the official statement. Sensible
stockholders, after scrutinizing 1t, will certainly
conclude that the directors were wise In try
ing to keep it from public inspection.
This Company, during the year ending Dec
81, 1875, made sales of coal amounting
to $1,000, 936, on which the profits were 3d.
216,27O. The decline in the price of coal has
been from SIS Al, the average combination
price for 1875, to So 81 per ton, the average
realized at the auction sale last month. This
is about as per cent. A loss of AS per cent
on $40, O34, 1886, the amount of sales last year,
would be q loss of $5,536,000, and would not
only extinguish the profits claimed last year,
but leave the company in debt over $780,
900.
The Canal Company, however, has certain
other expenses and large obligations, arising
from its leases. The canal road is employed
almost exclusively in the coal service OF the
company, and need not be separately con-
sidered further than to observe that it is not
a source of revenue but of constant expense
when interest on its cost is considered, for the
cost is reported as $4,879, 77S; the interest on
this must be over 100000, and the earnings
over operating expenses last year were S2SO,23l.
The Albany and Susquehanna and the Rensse-
laer and Saratoga roads involve the company
in heavy burdens interest at 7 per cent being
guaranteed on about S23,000,000 of stock
and bonds, of which, however, part has not
vet been issued. The actual cost OF these
roads in rentals aud interest last year
was 81, 743,2s4, and the roads earned above
operating expenses only $1,ll9,622, leaving a
burden of 1923, $50 yearly to be borne from
the other earnings of the company. This bur
den does not decrease in fact ii appears that
over $l,OO0,0OO year for five years has
been expended in construction. Also, new
first mortgage consolidated 30-year bonds on
the Albany and susquehanna were issued of
date April l, 1876, the amount guaranteed
beng stated in the prospectus of July IL at
$40, O00, 900, of which $3, 100000 is to be
RETAINED by trustees 10 retire outstanding
mortgage bonds 10 an equal amount" How
much of the balance of $6.550,0OO has been
issued does not quite appear, but the pro-
spectus states that an issue OF Sl,5OO,OOO
"inclusiye of the bonds now offered Tin Lon
a. dom has been made" and that the remainder
will be used to provide means for further i'm
movements to the leased road. In The Fmdn-
ciaI Chronicle the amount outstanding in
August was given as $1,595,0OO. Thus 1t 9
plain that the charge for interest and rental
must be larger, by at least the interest on
81, 595, 900, than il was in 1875.
OF the operations of the company in connec-
ton with the New-York and Canada road still
less definite information is given. Ii appears
that the company has guaranteed S4,OOO,OOo
of mortgage bonds, and that the stock OF the
road is $4,O00,0O0 more, and $5,9S6, 42G had
been expended in construction last year.
IL il reported that over $l,000,00O has been
expended this year, and it is only within this
month that the road has been completed to
Rouse's Point and the track opened to trains
The gross earnings of the road last year were
only S92, 4O5, and the excess over operating
expenses only $19,792. What earnings may
be realized this year TO offset this heavy outlay
does not appear, but the directors expect
from the net earnings of this line about half
"of the interest on the bonds, or 100000"
New roads do not generally begin to pay ex-
peuses as soon rs they are opened, and
large expenses will yet be required in
finishing and equipping this road. If
the entire outlay this year should
not exceed tho $1,00O,O00 reported as
having been expended already, besides inter
est on the debt, the balance on the wrong side
of the account for this year would be 81, l2O,-
600, even if the somewhat inflated expecta-
tons of the directors as TO its earnings should
be realized Besides, the directors claim that
the entire $4,000, 900 of stock is held by the
Delaware and Hudson, and that the road has
cost So, 900, 900. Somebody evidently has put
into it, in that case, about $4,000,000 more
than the bonds have yielded, and as it is not
expected 10 pay more than half the interest ON
the bonds, the rest Of the investment is
dead loss.
The directors do not give us any light in
regard to another road in Vermont, the con-
struction of which it is reported that the COM
pany has undertaken. They admit, however,
a loss on the leased roads aggregating about
"$1 100000 for the past three years !"
whereas that loss was officially shown to be
1898, 1862 last year, besides the sums expended
in construction, and this, it now appears, must
be increased for the present year, first by the
interest on S1,595,OO Albany and Sus-