New-York tribune., 1878-06-07
sRcnND RnAnn-l oIcLOCK p. M
THIRD noARp-2:3O p. NJ.
IA Crosse
THURSDAY. June G-P. NJ.

THURSDAY, June 6-P. NJ
There probably never was a more palpable move
ment for the purpose of affecting stocks than the
preamble and resolutions reported to have been
adopted at the recent annual meeting OF the stock
holders Of the Chicago. Rock Island and Pacific
Railroad Company. The preamble referred to sets
forth that the company has a surplus amounting to
several millions of dollars, whereas the fact is no
torious that the said surplus consists Of worthless
accounts or of fctions in bookkeeping. The
resolution instructs the board of directors
to make some lawful arrangement for such
appOrtiOnment of the capital stock which
represents such surplus will entitlo the stock
holders TO receive such dividends may be apple
able thereto First, it well known to the mover
Of this resolution that the Chicago, Rock Island and
Pacific Railroad Company cannot legally divide any
porion of IFS stock between its stockholders or dis
pose of the same except at par or above Tor cash
actually paid in. And further, ii was well known
that there is limit to the percentage Of dividends
which the company may declare and pay upon its
stock, excepting the limit fixed by the total sum of
net earnings and that, therefore, in ordertO divide
the total of such net earnings, there was no
necessity to increase the outstanding capital stock
In n word the scheme was very transparent and dis
credtabe to the promoters and il had little or no
effect on the price of the stock the early trading
The opening price at l6, from which there was
a decline to 1147s and the business was light. But
the reports of the morning were supplemented by
later assertions which pretended TO have come from
Chicago, that the scrip or stock dividend TO be de-
clared would amount to from 80 to 80 per cent. In
view of the remarks before made, il is scarcely
necessary to say that at the Office Of the company in
this city these reports were pronounced to be some
thing worse than erroneous reports. Nevertheless,
they had the effect 20 mark the price OF the stock up
to IL at the close and make the trading IN 1t the
principal feature Of the day.
In sympathy with the movement in Rock Island
Chicago, Burlington and Quincy rose from 10G TO
10Y. and Chicago and Alton was strong at oOl2aS1.
All these movements were made in the face Of de-
clining receipts of corn and other grains brought
by these roads INTO Chicago. The wheat carriers
St. Paul and Northwest, however, responded TO the
decline from daily average Of about 100000 bush
els TO less than 90 600 bushels and heavy, re-
covering somewhat in the late dealings. Lake
Shore at first declined from G3ss % G3, and then
sold up 10 G33.. Michigan Central was dull at 6S3i
a69; Erie active at 1Gos016d1 1888, and
Central and Hudson firm at 1097sa1lOas,
The coal stocks, which early were dull and ne
elected. finally recovered sufficiently 10 present a
very respectable "bull" appearance. DelavVTe,
Lackawanna and Western rose TO 57's, Delaware
and Hudson to 57l2. and Morris and Essex TO SG7s.
But the reconstructed Central of Ncw-Jerscy, which
opened down to 297sG 2Sl2 against 3Ol4 bid last
night, only rose TO 301l. Western Union Was dull
and steady at Sfas a s IlAa 4l2 and Pacific Mail
weaker at 10. JLe general market closed eXcited
ana strong.