New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-13

Floating debt statement OF Sept ., leIOl S4l'OoV
Ah GrSraI,de SpS H. AN J. 100000
5liarant,G nv 4. J. 100000
LOPEZ dorsed +, n G j. nosue 100000
Total Indebtedness and liability. S4s,514,OOO
Ao,usl i,t,,,sr ou t.,,s amount 3,305,9s0
Ab bs,cb 1c' ss "a FOR TeaE 1s75 1o59oOo
Annual renal Of South Branch Railroad 20'33oS
Annual rental Of Long Branch hallfU.d;'' 93'0cCOV
Annual rental OF Lehigh and Del Div. Canals 3s2l0s
Taxes. az for 1870. i'o'o -
Total annual liability for interest. 600
guarantees. and taxes. ...-..--....... So'o'o'ooS
A further examination of the last report OF
the company and Of the recent statement to,
the stockholders will show what probability
there is that the company will be able to meet
these obligations as they fall due. For the
year 1875 the company reports the net earnings
of the roads, including leases and branches, 10
be $3,2S2, 900. Therefore, unless the net
earnings of the road in 1876 are greater than
in 1878, or unless the company shall receive
n large net income from sources other tnan
that of the earnings of the reads, it will iah
some 81, 500, 900 short of meeting its interest
obligations rentals, and taxes.
Is there any prospect OF increased net earn
ings by the road for the year 1851
of coal receiving therefor Fl, 446, 900, or about
81 20 per ton. The Reading and the Lehigh
Valley roads have already reduced their rate
for coal transportation rs cents Per ton. Ihis
makes necessary corresponding reduction by
the New-Jersey Central, which 1t is reported
they have already made. This reduction OF
rs cents per ton upon 2,GOo,OOO tons would
amount to 81 $4,000, and would reduce the
net earnings Of the company, on the basis OF
last years business, to less than $2,OOO,0oO,
while its interest obligations, rentals, and
taxes will still amount TO more than $5,OOO,OOO.
Has the company other sources of income
upon which it can rely to make good tins de-
iicency2 IL has leased and operates the Le-
high and Delaware division canals, but Tor the
year 1875 they were operated, including
rental, at loss of $95,910. and for eight
months of the present year the loss has been
$4,000.
The New-Jerscy Central Company has in
vested over SO, 500, 900 in the stock and bonds
of the Lehigh and Wiikesblrre Cool Company.
IL there probability that its income from the
profits of this company will make good the de-
ficioncy above alluded TOT The Lehigh and
Wilkesbarre Coal Company earned in 1873,
S41O,7I8. This was over half a million dol
lars less than the interest on their $15,00O,OoO
bonds which are guaranteed by the New-Jer-
sey Central Company. To earn THIS net
sum Of $4,000, the Lehigh and Wilkes
barre Coal Company mined in 1873, 2,OSo,oOO
tons of coal. fall in price of 81 per ton
which is less than the average reduction IN
the company's schedule prices, as published since
tho rupture Of the combination, wOuld absorb
all the $4,000 Of net earnings for 1879,
and would make, on the basis OF last years
business, net loss of over 81, 100000. There
can. then, be little hope of profit from this
source. In fact the recent statement shows
the company TO have lost during the last three
years more than Sl,200.OOO.
The conclusion, therefore, Is inevitable:
Either the business of the Ncw-Jerscy Central
must greatly increase and the prices for coae
Transportation and the prices for coal itself
must advance, not only beyond what they now
are, but beyond what they were iii 1879, or
the net earnings of the company can by no
possibility be made to meet it, interest liabi-
ties. rentas, aud taxes The statement which
the Board of Directors have recently issued 20
the stockholders makes this conclusion irresist
Idle. inns hllltluCHl ~ siiu y" nav w"
made necessary by the persistent misreprc-
sentatiuns which have been so busily circulated
concerning the condition of the company. We
state only what is in the mouth OF every intel
ligent man who has examined the statement,
when we say that no misrepresentation or
rumOrs have placed the company and Its stock
in such a melancholy condition rs this Official
announcement. For it shows what the public
did not before know, the dcploTablc cmbarrass-
mcnt of the Lehigh and Wilkesbarre Company,
and consequently that It's bonded Indebtedness
of $l5, 900 must fall on the New-JcTscy
Central as gIIarantor. IL also shows that the
astounding floating debt of $G,6OO,OOO OF the
Lehigh and Wilkesbarre Company must be taken
care of by the Central, since it is indorser upon
il TO the extent of $2,000,000, and large
amounts of it's bonds have been loaned and
hypothetical an collateral for the other pOr-
tons of it. TO provide for these necessities
the company has made new mortgage for
sc, O00, 0O0 aud Issued its bonds fOr this
amount. Whether the negotiation vii, succeed
or fail we express no opinion. If the former,
it adds 80, 900, 900 to the abOve-namcd Londed
Indebtedness and $350,000 TO the aboye-named
annual interest obligations. II it fan, the above
statement will continue to represent the true
condition Of tho company.
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PROE. HUXLEY as A LkCTURER.