New-York tribune., 1876-09-29


Il will at once occur to every one that the
difference between coal on hand at the begin
ming and ut the end of the year amounts to
S399,G ,G73, and that this sum, deducted from
the apparent BALANCE, leaves 50, DDS, 1863 as the
actual profit of the company on the transac-
tions included. But every one will also see
that no payments are here included on account
of rentals Of leased railroads or interest on
their bonds, or construction and equipment OF
such roads, or erection OF the costly building
in this city. All these items remain to be con-
sidered the net profit excluding all these
items, appears from the official statement to
have been 81, ,629, 9,O12, or, emitting reduction
in stock of coal $2,229,369. Yet the state
mcnt of Sept II contains this assertion: SIN
"the year 1873 the net income applicable to
"divdends on the capital stock, after dedactiRg
call charges 10 the business, including inter-
"est upon the funded debt and rentals upon
"Ieased lines, was S2,020,G05 20; in 1874,
"s2, 2,Oi9,S S32 A; in 1875, $2,629,O42 49,"
The official report of last May seems to prove
conclusiyely that this statement is incorrect,
and that So, ,G29, ,042 33 was the net income
after dcducting $S23,l54 for interest upon
the funded debt, but nothing at oil for
rentals upon leased lines. We cannot recon-
cile the discrepancy.
But the official report allows only 1928, 154
for interest. although the same report admits
a bonded debt Of $15, 10000, and the sworn
report OF the company to the Auditor-General
of Pennsylvania showed q bonded debt of
Sl2,377, 900 on the 31st of December, 1874,
bearing per cent interest. 1t appears, also,
that bonds amounting to $2,OOO,OOO ut per
cent interest were negotiated through Morton,
Bliss g. Co. and l.. Won Hoffman e. Co. as
early as February, 1875. The interest due ON
debt at the beginning Of the year would there
fore be Ssi6, 800, and on debt at the end of
the year 81 ,O5S, 120. How the company con-
trives to acknowledge payment of $685. ,154
only is not explained, nor is it shown why the
company found it necessary to increase its
own debt $780, 900 last year, and has found
it necessary this year to borrow $1,595,000
more on Albany and Susquehanna bonds. But
it is asserted that, after paying the dividend
of August, balance of $745,904 remains,
whereas the balance Jan. l was given in the
companys report as $2,544,797. Hence the
two dividends of 5 per cent in February, and
per cent in August, amounting to 81 100000,
were paid by reducing the balance $l,79s s93,
so that the actual net earnings OF the company
for eight months of 1875 appear to have been
$1,1O7, less the unknown sum by which its
debt has been increased.
Stockholders will readily infer that the COM
pany would have made haste to mention the
fact if the debt had not been increased, or if
the company had made any earnings. They
are justified, therefore, in the conclusion that
IL 4 Al 4. ...il
months of 1876 has failed TO meet first
charges interest, and rentals, even with coal
at combination prices. With what propriety,
in the face Of facts which their own report
thus discloses, the managers can say that they
"can hardly conceive of condition Of things
"that would reduce the net earnings below
"the fixed annual charges" we leave them to
explain.
The amount of those fixed annual charges is
not frankly stated. 1t Is asserted that the