The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-09-13

money initiation and the enormous advance
| of the price of coal, u stock dividend was
made in 1864 of $500 600, raising the capi-
| tai to 1900, 900. Another issue OF SOOOO,OOO
was made in 1869, and 5000. 900 more in
| 1874. so that the total amount of the stock
| is now go, 0OO,OO0. The bonded debt has
| likewise been increased from almost Moth
| ing in lsGO to over $500 900 at present, so
that the aggregate liabilities OF the com
pany on its own account are more than
| So. 100000. But, besides this, 1t owes, as
lessee of various railroad lines. an annual
rental amounting to the interest at seven
per cent. on $29O00OOO. Before the share
holders can receive any dividend the COM
pany must, therefore, earn tho interest on
1900, 600, aud 81, 100000 more are required
to pay them seven per cent. Oh their iu-
vestment.
To represent its enormous amount of
capital and debt, the company has to show
its canal from the Hudson to the Delaware
and the short railroad connecting the canal
and the coal mines; its leased railroads,
extending from the mines to Canada; its
coal lands, and its real estate in this city.
The canal is practically worthless. beng
superseded by the railroads. and costing
quite as much for repairs IA the tolls
amount to; and the leased railroads only
earn little more than half their rental,
leaving n deficiency of about s1,0O0,000 am
nually, SO that upon the coal lands and the
city real estate falls the brunt of paying
both this S1.000.0J0 of rental, the interest
of s15.W0,O0O OF bonds, aud the dividends
on S20,0O0,OOO Of capital stock. The city
real estate cannot be relied upon for much,
if any, profit consisting merely Of coal
yards aud a costly but unproductive Office
building In Cortlandt street; aud the whole
problem resolves itself into determining
how much money can be derived from
mining and selling coal.
For the year ending Dec. 81. 1875, the
company mined and purchased about
100000 tous of coal, which it sold for
about s12 900 900, or an average OF "a per
ton. The net profit on these sales was about
1909. 900, or al. 10 per ton Out of this there
was paid for interest ss23OOO and for loss
on leased railroad lines 81, O00, 600, leaving
for the shareholders s1.416,0O0, or about
per cent. on 10000. 600. The prospects
for the current year are that the product
will be only 100000 tons, its price only
$3.50 per ton on an average, the interest
accrued sl,O50,OOO, and the loss on the
leased lines considerably more than q, 0O0,-
600. Admitting that reductions IN wages
and expenses will reduce the cost of the
coal to 81 per ton, so that it yields profit
OF fifty cents, and that the leased lines are
no more burdensome than they were last
will stand thus;
Interest bonded debt o. oS0 ono
l"ss Oh ceased ines lo1p ooO
PROFITS GU 100000 OF coal al 55; 49,. io56S05
Deficiency. .........ti oio 900
This certainly is not an encouraging out
look Tor the shareholders, aud ii is no
wonder that the price of the shares falls
ut the Stock Exchange.
There is further element to he consd-
cred in forecasting the future OF the COM
pany. and that is the possible working out
Of the coal lands upon which, rs we have
seen. depends its ability not only to pay
dividends but to meet over $1,000. 900 Of
rent charges and interest. How many
acres there are OF these lands, where they
are situated, and how much coal within
reach they contain, the company has
never reported; but il has already taken
from them something like 300OO0 600 tons of
coal, and is going on NJ the rate OF from
2,OO0,O0O to 100000 annually. II seems
only reasonable TO conclude that sooner or
later ii will exhaust all its coal which can
be mined at profit, and then IL must mr.
chase new lands or suspend business.