The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-08-20
VlIYITS STOCK lIASFALLEN
INSIDE VIEW or THE NEu JhR-
srY CENTRIL RAILROdD'


ttt
49,. ,nr profitable Coni Trade was LOST
various rumors have Deen crcu'".eu
INA condition Of the New Jersey Contra
u,,,r,od The stock Of the road recently i,.'
.rn,til2to8l A circular circulate In wall
49,, .,,,ut thres months ago charged that the
-, had f,lsined their annual statement
.n, ,t,emptcd to demonstrate by ngures not
only this fact but that tho comp'"S was !"
rtousdifleuty Mr.John Taylor Johnstoh'the
pr,.ident Of the company, circulated a reas-
,,rios circular under date Of June 20 In whlch
bo p,intcd out that the last report had at
,,u,,tsd 10 the material reduction OF profits re-
.ulrns from the coal strike the fict that only
o,e.half OF the dividends declared mad been
via from the earnings OF the year, and the re-
r,,nder from the Surplus profits OF previous
xa,r. and that both these and the spring divi-
aanA. had been declared under the expectation
a. increased business In this centennial year.
lie admitted that the continued depreciation OF
bnslne.s had seriously reduced the profits
since, but he ID that 1t was only temporary and
would not impair the future OF the company
He charged that there was bear movement
IN the stock carried on by short sellers Of bor-
rowed shares. and that It's object was To brighten
tho people into parting with their stock at low
prices, and thus make a profit on sales; but
he added that thus far very little stock had been
drawn out.
Dut. however the case may have been at that
time IL Is certain that good deal OF the stock
has been drawn out since. Its failure to recl-
perate IN price has thoroughly al,rmed the
smaller stocknoid trs. many OF whom express
regret that they did not sell, as some did WINE
n was among the nlneties; or even eighties
The larger holders naturally refrin from ex-
pressing any slhcltude, but tins again reacts
~ lending credit 70 r1nor ca at the holders oil
81 his directors. were trynl to " drown out the
SMALLER fry. Inis last rumor ms no crsjen
kniwn that Mr., Johnston IA a holder of stocks
and MORTGAGE bonds Of the road TO tina extent
sr- Tor BART II his fortune. and that he ba.
Interested his friends IN 1t wherever he could
do 50. The depreciation In values therefore,
entail. an enormous loss to him. Indeed, one
nf the rumors current IN the street was that
Mr. JOhnstons nervous system hid been 80
much shattered that he had been forced to re-
ino from the manae ement, aud that Col. Kane, oi
Elizabeth. Nice-Prcs ident had been appointed
g. his place In the active conduct OF affairs.
Color was added to this rhmor 10y the iact tnht
blr Johnston was at "a watering place until few
day ago, and that Col Kane acted IN his stead.
WHAT THEY SAY IN WALL STREET.
Operators in wall street deny that the fall In
NV jersey Central IA attributable to any special
fhe natural and Obvious laws Of trade, by which
ine stock has at last found its true level " Yes
per cent dividends for several years and II YOU
wanted to mud out where they got them, you'd
Western and no through trade. lhe trouble
may be found bv consulting tn tr last published
smlon OF nominal snrplus previously eAls.hR
They issued five millions making altogether
Ux millions. one-'h ird OF which was I'D out ~
the form, OF ten per cent. uNluenus q tae,r
s,orkholders The rest they scent In branch
c,oi advantage. Bat they ch se a bad time to
snr.ad out in business. Mr.. Johnston has been
going auead too fas. ana has gone too far.
Inoy are paying dividends that they nave not
e.rAed. heir report 81 5 thsy EXPECT - 20
Ihaai and pay the same dividends out OF the
profits II the current yer; they ID no nght
b. say ANYTHING OF the Kind. There - no pros
poet Of Their paying iesltmate dlyldendi' fot
II the legitimate expeuses were charged To the
EXPENSE ,ccount' tnAt taet W.uln apler' ~
the, can keep the road out OF the nands of
receiver. they will De lucky. me road rs been
run on the Mtcawb her principle OF giving lttie
settled"
Experienced railroad men say that n the
Genital Railroad COMPANY expectations are as
lig- IS their ekpenuit ures. they are SURE 10 be
dap oinied. lnero L. not ruai IN thi. c'un-
Nv 40 well -qIlupol with motive power f9r tho
business. In tiush tunes, wnen they mai all the
business the, wished. they had eighteen loco
That m ,de SisJ.Ooi Of dead capital II IS aid
tpattwelve new engines nave been added within
yenr to pfenare for ieutennitl bu-iuess, al
Lnuugu tpere were plenty 90 engines INK M
used. wnica would nave bsen aNai 'nie after
some repa. lln,. lnel have i,-ue s-lplJ00 Ia
B'ocas ana s27OO0OO IA bond. M kiIg si,.0O,-
plin all, for a ROAD whcn de. onN n local
business with when to sarn the interest on That
sun AMI pa dividends. \ far idea q tuis e4
iravIgance may oe had 10y contrast. When the
pauy Wa turned yer 10 the ,mden and Am
g., L represented oui, S6.JJOUOJ. includlng Tue
Jersey Cily franchise Bu- t!Ai was part Of a
she business u the New Jersey Central is en-
tlrsN local and largely done on commutatons,
Nnich viii not average more than quarter vi a
TIE FIRST blow.
,sdg Y1 the es ntea ar5ad. ~ Sew jersey. The
New Jrrsey Central received the first blow 10y
iosins ~ western connections helns Unable
g. replace tnat cunnec,ioi' It's managers
cos about for other sources 81 business. NJ Sos
directors II II. Moses Iavl'r was also director
IN the Delaware ana LacSawannt. a cOmbna
lion WAS greed upon by which they were 10 con-
also IN the region Of the Lehi.h and Susque-
hanna. All the scranton coal was 70 be brought
IN over the Central, instead Of over the Norris
and E.sex road 10 make Connection with the
Central, The Delaware and Lackawannl ed
lhe Little Warren Railroad, guaranteeing TX per
cent. on its stocks and bonds. Tue Contra had
hmpl. front ise on me Hui son RIVER. sud The Del
aware and lackawannl, Nv iOrmingthe comhna-
Ron, wO.ll avoid trOIble with the Erie which
she Bergen Tunnel. trouble which Otherwise
wouiI render II necessary to excavate new tun-
nel. Inc requisite legislation was obtained
cons ms. i i,, me Two eompsniesi bu'
Agrmcnt " Is there 10 ask lt-peal ~ the consoli-
ua'i1n. The two interest had tailed 70 agree
90 80 President Moses Taylor, VIII an +.
bJlfe, aud The Delaware ana Lnckdwanna in
i'fe-t wanted samuel sloan 10 be President If
Ell anon being President himself. and destroy yea
tle - i.finn.,E TO control me coal trade
y
ut! TO combine with Asa Packer for the trade
81 tn- Leui-n y allie, N.s l.si for PROBABLY simi-
BAR reasons. Asa Iark"r iLl Jlun laylor john
tDh were each tpl positive iu Their purposes 20
make harmonious comilniuou. Inc Central
WIS t"r'od L. Doc content win the coal ram ~
rc-ilns r'ntrJ lied by Itself "a me. Instead Of
nictIluS terms to tue en. ire coal region, % Is
ou.Y one II c,m0iuati OF SIX conn anies.
A. L cAer built one ROAD TO Amnoy, winch con-
nrcis with the Pennsyiy mia road al Metuchen,
hlt YHlY awaits better times TO extend q L. the
hudson flver, where he has secured frontage
c.7. s.9n.silo u the C-Hirh. Inc Delaware
n's l. cHhwannA b. oroci the Norfis an E--eK,
'nil immense 90 wares on tue river front,
poo has IT, own tunnel nearly comp eted through
L'r-eu ull Ana VITA AL these nedyy eXpeudl-
tllt- ITS stOck stands iru about " Ia Me midst
oft deires,i ln in the coal trade.
WITH TINS Succession Of mis- adventures one
ge.- closer Wow bOth 4 The deurec ialOn ~
..l.c uueence ia tae view Jer,-y teutrtI's
80 q and Of the Necessities under Wi IA rs
cers have always felt themselves lannring,
l..l To- build broad foundations Tor future bust
hess aud u Keep up appearances unti that b isl-
ICES came. Bur tnCrt Is another phase which
49,, -till further llgbt upon the inquiry a. 20
wIlt crippled the resources OF this once prom
ilu- enterprise.
HEAVY LOAD.
q d.. American Dock and improvement Com