The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-09-25
PRICE TWO CENTS.
A RAILROADS. TROUBLES.
THE NEW JERSEY CEyTRAL's NEW
S5,OOO,OOO MORTOAGE.
Wall Street Opinion on this Effort TO Raise
More Wind John TsvIor Johnston Rc.

Wall Street Opinion on this Effort TO Raise
More Wind John TavIor Johnston Rc.
ported 70 be In Error-Thc Wise Astors.
The FIVE million mortgage on the Central
Railroad OF New Jersey has been flied in all the
counties through which the road runs In that
state. IL Is made to Samuel Knox OF Elizabeth
and John Kean OF Union. The preamble set,
forth that whereas the Central Railroad for the
purpose Of raising money, have made Ave thou.
sand bonds, bearing date the LIST OF September
Tor tl,OcO each, payable to Samuel Knox OF
bearer, the principal OF said bonds being pay.
aoIe AT the office OF the company In the city OF
New YORK on the 1st OF September. 1885 and In.
terest upon said bonds at the rate of seven POI
cent Mt the ONCE OF the company, semi-annu.
aly aud whereas the said company, with A.,
view to enable them to negotiate the said honda
anu 10 secure the repayment Of moneys which
ehhll be raised thereby, have determined IA
mortgage their road, LANDS, privileges fran.
o, unlses, ana appurtenances, and other persona
:, The mortgage proceeds to convey to Messrs
Knox and Kean the main line of ROAD from tbs
Hudson river to the Delaware river In the county
OF W hrren, the Newark and New York ,Ilro,d
TO Newark, and the branch from Elizabeth to
Perth Anboy; also, all the compsny's lands,
workshops, machinery, stations. Offices, station
grounds, engine houses, buildings, and improve
meDts also 1000 shares Of tue capital stock of
the New YORK and Long Branch Railroad Com
psny, at the par value OF .sl,5OO,0OO; 13,OW
tnhTfs OF tue capital STOCK oil the Lentyu and
Wilkesbarre Coal Company al a par value OF
t0G0OOOO; 5000 shares Of the capital stock of tbs
iiigh Iiricge Rlilroad Company Of the state Of
New jersey at par value OF $S0OOJ0; 2O01
shares OF the capital stock OF the Long
wood Valiey Railway Company, at par
stock Of the American Dock and Improvement
Company, at par value OF t3O00,OoO, which is
subject to an equitable lien OF $3,0OOOO0; also
ten ferry and other steamboats,.
These securities are to be held In trust for the
persons who shall become the holders Of the
a ~ nI hA
retain the Tree and uncontrolled possession and
management OF the property. The company
the trustees or their counsel shall reasoDably
advise to make this lien more efectual. II the
company make default in the payment OF the
interest on the bonds, the trustees are directed,
upon the written request OF the holders OF one
then outstanding to take possession Of thu
property themselves. In SUCH case they are to
anply the proceeds, first. to paving the expenses
OF the trust ana to indemnify them selves against
Liability OF loss through any OF their Official acts
done IN good faith, and secondly, to the pay
ment OF the bonds when due. IL the proceeds
should be insufficient. the interest and principal
Are Are to be paid pro rata and the trustees, upon
sale ON thirty days notice.
The company, may, however, with the written
other property any portion OF that conveyed,
except the main railroad. which they may deem
unnecessary for their purposes; but they are to
Invest the proceeds, subject to the trustees ap-
proval, In property upon which this mortgage
shall be len The company are empowered,
security Of these bonds or for the interests OF
the creditors generally, to surrender the mort
aye II thereafter
MIR. John Kean Il vice-President OF the COM
panv. Mr.. Samuel Knox Is the Secretary of the
company. He !. also the Treasurer, to whom
the bonds are payable. Both have long been
active directors, and are heavily interested In
the stock OF the company. Under their man.
aeement the outstanding stocks and bonds
re-, Gepresent ,n an investment @ Of 81,
amount has been consumed In runnina
a merely local road: whose passen.
sas viii are no. sSeyors tn mSfS
a quarter OF cent mile. Six and hslt mil.
ines from whici. when 1t formed a part OF the
great coal monopoly, are snown by the Cen. raj
years operations IL used up million of surplus
capital anu that In order to pretend to be reap
Ing pront II Issued nye millions more. one half
OF which went 10 pay dividends. Now that the
coal combination is dead aud without hope Of
tesu rection. when coal has fallen two dollars a
yond the temporary influx OF Centennial visi-
tors the propos9l TO add lye millions more to
the company 5 bonded Indebtedness argues a
future.
II the object In making this mortgage was TO
influence wall street the attempt has been
failure. In the opinion OF the street the ptlr-
pose was to induce the holders Of the Central's
II laiiug Indebtedness to accept the new bonds,
as one broker said, " ON the Irish principle that
nothing Is better than something The com.
pany mas been getting extensions OF maturing
obligations, upon condition OF paying ~ per
cent: one street rumor that helped the stock
" mat Adolph Borie OF Philadelphia had been
buNing II up. 1t was coupled with another,
that seemed to be well founded, tn Il Mr.. Knight
the President Ct the line when connects with
the Central at Bound Brook for Philadelphia
and who has recently entered the Central's
board Of direction, was also n heavy buyer and
the theory OF some was that the Phiiadelphii
people were ouying up the stock choaply withs
view 70 obtaining control oI q Though me to
N,w York, ana some sad, TO connect with thu
Il ltimore and ONO. Hut MIR; borie was not on
the street for The Central: lie was there as
d dlroctor Of the Philadelphia and Reading, and
one OF pool In the board that hts enough to
do Just now TO keep up its own stock. MIR
Knight, on the other hand. Is known rs heAvy
operator IN stocks for prOht and II he was
large buyer II WAS because he could make money
by joining, the movement TO squeeze ths
the error with which Mr.. Johnston, the Presi
dent OF the company, Is credited. When tht
rumor was started II was trea ed as bear story,
hut II l. now the accepted belief on the street
thlt Mr. Johnston operated to keep up the
stock ntst at par and nfterward AT 81 hypothe-
eating his Investment stock as margin and
that the fall IN the market thus ate both waya
until ho Was forced TO let LOO shares 90, nnd
It was thrown overheard, 10 bis great loss.
as lis founder in their disposition OF the 600
shares which were among It's assets. They sold
last spring when the stock was about ITO.
Mr.. John Taylor Johnston, the President Of
the Company, said on Saturday that they have
no immed ate expectation OF negotiating tho
t60O0OO OF bonds while times are SO hard, but
that he thought they would be able to do o at
some future time. lie added that there was
nothing IN the rumored intention Of the Phila-
dolpnia people TO take the road. und that there
was no change IN iis situation. A general opin.
!Sa In financial circles is tat the road must
soon 20 into the hands Of a receiver.
DIR. Rylnnce Criiicise- the Hypothesis Of the
Birth of Mnukind.
In st. Marks Chu,ch Yesterday, the Rev.
DIR. Rllance preached on tho hypothesis Of evo-