New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-01-11

rpon his showing The Daily B,iIstit edltorlay re-
marks upon past business and future prospects OF the
company follows:
A. the coal traffic Of the company from one
half ~ wo-thirds OF ts entire business, ths veT large
falling of N coal receipts presents very grave item
IN Tie operations OF the road In 1876 there was no snei
r,erl1On coal strikes occurred III 1878, and
thc quantity carried 2599iJ tons greater last year
fbo car urcrcdpg AMI thou u the report throws
H. blame or faith Of tie parties 20 the aie cndl
combination yet the truth is that the company had dur
i"c sopihs of the whole vear all the advantages of
iieh charges tlat alliance intended to confer. Tie
QUESTION arises IT, WITH only three mouths operations ~
lie ruccd charges tloFe il u reduction in raceips
a. - OH rs compared with the year 1875, what
nav be expected for the current y, ar, the entire
srrcv reduced chargesl reduction Of only 20 cents
yer ION FROM he average OF last years rate woaid IN
pared With LAST Of about 81 Or Of close upon
S-oooo3o compared with 1870 and OF more tl.;n
lSi The Centennial traffic having ceased must Al
S5OOCU0 u the travel receipts as compared VITA thoSt
DISC. Thu. tho prospects o; The coal ad passenger
Cut ~ 80 rom these soiro-s Iay ail about s. 400
OuO those of 1876 what mag OF the result 1I
proved IN tie mean time, have these facts ir our
guidanee: The merchandise tonnage was IN lsz4'
S1> 81 tons; IN 1873, 2,72O2OS tOns aud in 1876,
2i93277 tons, showing steady decrease for the last
i4fee years
Asto the dirert liabilities OF the company the report
O. partially printed in tie Philadelphia papers he CON
formation. The only evidence on ths point Is the fol-
loelg statement OF the fixed charges Of the company
j 4 e. s sss. q; sssssss. Gs5is
10 .,e provide, by lle Coal ana Iron Com -
ptly. say I'OVVV 40, 600
Interest OF floating debt, say...--........ 5ooooo
Total -, rs, 367
Thus interest," and sinking fund charges TO be pro
vidcd icr year amour: to $527936T or more prop
civ - - 440 367, for there is prospect OF he Coal
and Iron Company paying the $4,000 here deducted
on ~ account
The floating debt of the company il stated AT S~%72
35J. As. however. the floating debt " the Coal
and Iron Company mas been enormous some e1llan2
would naturally De drawn from Mr.. Covers adrOir
ethod OF stating this item that the open Iebl 81 tne
-e P's 80 ear az i a 5io 6n, oc0 Of new mort
sate bonds These issues appear 70 nave b"tN
made % te railroad IN liquidation Of the Coal ana IRON
Company open indebtedness 10 the road ~ tE!s very
clever tca; financing, ne coal and Iron Company tes
NJ or ~ 100000 OF open debit ana me Taroaa Ett-
Sl79"" 900 N paper assets Wort-Wh at ne ieitf
trcs Just puts S17COO 600 more -as into mas Eea ing
balloon. already inflated % the point OF COLLAPSE Iho
Ir~ ul aclang edged debt Of The C"a! ANA Iron
Company is F070.04O; doductins which rom tit a2oN1-
mentioned floating debt OF tie Two companies ii FOL
ca- tat the open debt Of the railroad proper IS 49,
Headings Ia Irect Liabilities The report does not enable
Us ~ ftain very definitely The railroad company is
i4dul.r II 100000, coo II TIC Coal and IRON COMPANY
per cen. bonds. II would appear that II has also CUR
aa.rl liz U,N issue OF ri OGOOOOO OF dtbcnture mort
gaze bonds pat Dlt by the Z. aud (omldny
ll addition 20 these Liabilities, Mr. GOwen aCtnoWl-
Tie railroad has guaranteed the debts 81 iron
AMI other turing ILiInles 10 The anoluJ OF
S3~2uOu which represents iurher liability for inter
alone, TO say nothing OF principal, amounting 90
S---9i0.
&, summarize The direct fixed charges Of Reading for
f1s ,r,ut y, amount 10 >52IH361 and the MOI e,J
cs.s-s connected with other companies and llGld-
stand 77.7iD. making total or So. l'l
o. rtrlest ana sinking fund payments wIch the ROAD
Lad IT, prepared 20 meet In 1877. And besides this Il
a floating debt OF SS,27Z,35J Now, rs shown aro' g
fle r. amount available fOI fixed 'LaTS lst e4r Was
S5Il~6-i which Is S.43s4 33 short Of The amount %!
tins years charges. Yet, shown above, there arr
sou1d anticipating that the net increase d
TINS year fan very materially short OF tnat o. 1876
Nt possible chance then IS there OF Reading pas IN IL
yayf
Whist does the keeping up OF such ruinous business
Involve Lei these facts supply the answer: Al the
beginning ~ last year the COMPANY issued 9lOOOOCuO
OF It's general mortgages BOMBS III London; 10 ld- since
Issued S,.uOO,OCO more Of IKE bODds a. e0ilAterii
against floating debt; il mas made " blanket
mortgage ~ SIO.OUOODO covering It's mSceItiieods
assets has On the OF the Coal ana lrnn
Company 10000 600 OF dCDertuTe bonds aud oIOO}-
90 ~ And for these Is ucs or c4Z,OOOOoO OF
O,hg1tons within year. what nhs u show Sucn
management If financing mad, and can nave Out
Ole end, and IL q speedy one.
Tic causes which produced such disastrous coHse-
qnenccs the Reading Railroad Company arc the same
as affecting thc other great coal companies to Wit
nistsken investments made the high TIDE OF values,
ether lands leases railroads which c'nnot
AZ income equal TO the annual outgo for interest
OF rentals