New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-06-22
FINANCIAL HARAINGS.

"Therc Is worse coming" said an expert
rnced investor when things looked dark some
time ago. The collapse of the National State
Bank of Missouri and the rapid decline of the
stock of the Baltimore and Ohio are peculiarly
ominous. The State Bank Of Missouri was
formerly the great financial institution of that
State. Its stock was purchased and the
bank was rcorganzcd rs the strongest
National bank in the State, with such
men as Eads, Mcpherson, Dickson, Brit
ton, and Blow interested i'll the enter
prise All were considered strong; some
were thought to be worth millions The par
ties controlling the bank soon became largely
interested in the purchase of the old North MIS-
souri, Railroad from the State, and the subsequent
change of the name of the company to the
st. Louis. Kansas City and Northern did not
give the company incrca ed iinlncill strength.
II is unnecessary to say that large losses were
sustained, if not by the bank, by the men who
were prominent i'll its undertakings. The 81.
Charles Bridge, an enterprise which cost lar
more than was expected, because the Missouri
River flooded the caissOns, was another
source of loss. The Kansas Pacific, at that
time designed TO he operated in connection
with the North Missouri, also proved dis
astrous large sum was aiterward placed
IN the St. Louis and Illinois Bridge Company.
But the bridge cost more than was cx-
pected the bondholders took possession
soon after it was completed, and the stock be-
came practically valueless. Finally came the
lefty project, and the bank is now said 10
have invested very large sum b1,O0O,OOO)
in that enterprise. Its success as n work OF
engineering is proved but as a financial en-
tcrprise it has been embarrassed by the
chursh delay of the Government i'll pay
ments. 1t is probable that the bank
ound its various assets arising from
such operations inadequate to its needs, and
therefore determined to close its doors.
The Baltim ore and Ohio was the strongest
of the trunk rods. In January, 1876, its
stock sold for 1928 in February, for 172-
23, ; in March for 160-170; in April for 100
III; in May for 160-161; in June for 151-
1876; in July for 151-156; in August for
153l2-155l2; in September for 152-152i2; in
October for 147ls-1523s; in November for
145-149; and in December for 145-l5Oi2
Such was the record for the terrible year 1876,
a year especially destructive to doubted rail
way stocks. But this stock was MOI doubted.
Very large loans were held and renewed in
this city. The earnings promised well. The
new lines were officially said to cost the main
line nothing. The company claimed to have
very large surplus, and the fact that
this surplus was mainly invested in doubtful
undertakings did not appear. The year 1877
brought no relief indeed, from l50-l52i2 in
January, the stock gradually declined to 40
100 IN February, andSl 2S-l40 in March, and
121l2-l30 in April, and 109-124 III May
Fearful losses were bravely sustained by the
friends Of the company. Railway wars were
treated with scOrn. But in due time there
came the reduction of rates on the Chesapeake
Canal, and the sure conviction that New
York bankers would no longer sustain this
company i'll d,vcrtng commerce from New
York. Then the price fell-ol Wednesday to
so; and we have yet to see the end.
1t Is the old lesson. OF all the main roads
the Baltimore ana Ohio was the most secret
It's regular reports were blind and vague
It's debts and OBLIGATIONS were never fully
known, and 80 little was explained about
its workings that men reported that it was
engaged in moving grain on speculative ac-
count for somebody interested in the road,
the freight being regularly charged as
, earnings. If conccalment could win any
where, surely it could win here. Not less in
the Bank Of Missouri, the same course was
pursued. The public was treated as an inter
lOper, having no right to know what invest
ments the bank had made. The result is here
Some banks and capitalists, having loaned to