New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-09-26
SECOND BoARD-l:3O p. NJ.

TUESDAY Sept. 2j-P. ".
CORRESPONDENT has fallen into natural but fatal
error in supposing that the consolidated mortgage
seven per cent gold bonds Of The Chicago q North
western Railway Company represent first lien
upon any portion Of the company's property. The
mortgage which IS general one for S4S, 900, 600,
covers ,137 miles Of road proper, and 49l miles of
what are called proprietary roads, total 62S miles
of railroad together with all its equipment.
1t was executed in 1872 and the bonds issued under
il will mature in 1902 OF the $1s,000,0 900 bonds
authorized. $35,075,0 900 were reserved to cover
bonds issued under prior mortgages, as follows: On
the road proper 500 45O 900, and the proprietary
roads $f4,625 900. These various previous mort
cages on separate portions of the consolidated line,
bear dates from 1859 to 1871 except in the case OF
the Northwestern Union (62 miles, which was mort
gagged for SO 800 900 in 1872. OF the consolidated
gold per cent bonds, there had been issued
at the date of the company's last annual
report 343, 000 leaving still at the disposal OF
the company 81 $50 600 bonds to make up the full
amount of $4S, 100000 authorized Therefore it
appears that so far as the public holders of the gold
bonds are concerned their security subject to prior
liens on the road proper, amounting to an average OF
17 $50 per mile and the proprietary roads to an
average of $29,7S0 per mile. Further. out OF the
total prior liens, there fall due before the CONSOLE
dated gold bonds only $1,7O0,OO0 on the
road proper. and S51O0,O0O on the proprie
tary roads, so that practically during the
life of the consolidated bonds their security in
point Of priority will remain unchanged. 1T is a
mistake 10 suppose that the consolidated mortgage
is any lien upon the Iowa Division. This division
500 miles of road, is leased and operated by the
Chicago and Northwestern Company, on the basis
of certain percentage of gross earnings. This ar
rangement enables the Chicago Iowa and Nebraska
Company Ieighty-four miles, to pay 10 per cent
dividends on 49, 100000 stock after paying per
cent interest on 100000 mortgage bonds, and the
Cedar Rapids and Missouri Company 27G miles to
pay per cent on So SEQ 600 stock. after paying
per cent on "a 800 600 of preferred stock and mort
gage bonds. When the remaining Sl,5S2,OOO OF
gold bonds are issued, the entire system owned by
the Chicago and North Western COmpany-l,G2o
miles-will be bonded at tine ayeragerate of P294S2
per mile add to this I21 49, SOP OF preferred stock
and there is a lien of Sl2,G75 per mile of single
track road taking prec edence OF the common stock
of the company.
The stock market to-day, with the exception of
the coal shares, was just the reverse Of yesterday
After steady opening prices gradually improved
till after . o'clock. when the market was given a
sharp upward turn, which was helped by an un-
founded report-and one probably invented 9 TO in
guence the price Of stocks" to the effect that the
Treasury Department would deposit a large sum o.
money with ,he banks and Syndicate to ease the
money market. However, the full advance was not
maintained at The close, because % the limited ue-
mand for stocks. Northwest common, which IS
again "cliquod," that its price may be made
Whatever tie holders choose it TO be- ed the advance
np TO 375s closing al 81. The preferred stock
and the st. Paus followed in rather feeble
sort of way. The coal shares, after declining
sharply in the early trade, made partial
recovery, closing however, weak aud unsettled.
RASGE OF THE STOCK MARKET