Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-09
PERSONAL AND GENERAL.

The gross earnings oil the Mobile and ONO
railroad for the month Of May were Sl37, >
645, against sl45,S03 for the same month
last year, decrease Of SSl5S.
Vicksburg Commercial, Tuesday: "Mr.
CsbbelI Breckenridge, chief engineer of the
Chattanooga and Vicksburg division of the
Cincinnati, New Orleans and Texas Pacific
railroad, had the misfortune TO meet with a
serious accident Just az he arrived in this
city yesterday morning. In attempting to
stop from his private car, which was hitched
TO the sleeper, his foot was caught in the
coupling, causing him to fall, resulting in
wrenching and dislocating his ankle. He
was at once sent by special train to his home
in Tuscaloosa"
The Cincinnati Gdzetts man who does the
railway considering for that paper has been
revolving the subject OF modern methods Of
railway laundering, and concludes that the
old way of taking a given amount of stock
and paving 100 cents on the dollar for 1t,
and then bonding the property for about one
half of it' cash value, il played out. The
new way pays better, although it may be
little bit of color when compared with the
old way. 1t is done in this way: Suppose
that the lowest estimate for constructing
and equipping a given number Of miles is
$4,000, 900; the ring will issue Sl2, SOC, 900
in bonds and S12 900 in stock, making
the bond and stock debt SIS, 100000.
Then it is agreed that every purchaser
of a bond shall have a like amount of
stock free, as a bonus, as il were. Then it is
agreed that they will sell the bonds at eighty
cents on the dollar. Subsequently it is agreed
that eve shall have the right TO subscribe"
first and the public afterward. When the
subscription books cast up 1t is found
the eve" have taken all the bonds with the
stock bonus. Eve" then conclude that "we"
don't want the bonds, so Eve" float them at
a price much above cost as possible, leav-
ing the voting power which controls the road
clear profit. In the meantime an agent is
sent out along the proposed route to solicit
subscriptions from the counties, cities, towns
and individuals. Should a town or city
refuse TO "come down" a surveying party
is sent out and a line run near enough to
the place TO convince the inhabitants that
il rival town should be started on the
road within a mile or so of them their burg
would be ruined. A word to the wise is
generally suffi ;ieat, and the assessment ia
agreed to. These subscriptions are clear
gain to the Company" Not within the past
ten years has anybody heard of the subscrip-
tion3 to a railway project going into the gen.
eral fund of the company. That was the
way long time ago, but they know better
now. Thus it will be Sc IN that the profits to
a syndicate on a ten million road are, first,
SI2, 500, 900, or the entire capital stock OF the
com pany, the subscription gathered on the
line Of the road, aad the difference between
the groun1-h 1or cost of the bonds and the
price at which the public is pleased to take
Them, which is generally at about par. Be-
sides. the syndicate or ring retains full pos
session of the property, which, in railroad
ing, is as good az "four aces with a cold deck
TO run to-"