New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-30
WHAT WAS DONE IN STOCKS.

It was a curious coincidence that the Tree
selling of stocks for the short" account last week
should have been followed by the publication
Monday morning of interviews with few OF the
Western railroad managers III reply to prepared
questions as follows:
Do YOU believe il possible for railroads. under
the present laws and system OF management, 10
earn a fair return on the investment
Is system Of common ownership and manage
ment feasible?
Is such Il system necessary
Is railroad bankruptcy threatening in the WeSt!
If not trust what shall be the remedy?
The general reply OF those few managers who
gave answers is well expressed in the headlines
All see disaster ahead There are one or two
honorable exceptions. Mr.. Hughtt, president of
the Chicago and Northwestern Company, took a
busincss-lIc view Of the situation and failed to
see the impending disaster. But most OF those
who gave their views, particularly the general
manager Of the Chicago, Burlington and Quincy
the company which in November, SS7, began the
rate war which demoralizcd the whole business of
the West during the year lSSo-protends to take
gloomy view of the situation unless our pet theory
advanced in SS7, of railway trust or practical
consolidation is carried out Probably the author
of the questions knew the right men to question
in order to obtain the opinions wanted. The
general opinions obtained furnish evidence that
those who gave them have no interest in their
respective properties; at least, are not stock
holders. But what is Of more importance is that
their expressed opinions, if honest, form con-
fcSsion of inability TO manage the properties under
existing laws. In every other situation in the
business world such confession would be ac-
companied with letter of resignation, or, if
not it would be followed by an order of dismissal.
An intelligent man seeking after truth would have
41,ui iEf
" If the situation is so bad as represented, where
do your earnings come from ?'
Some ten days ago we referred TO the new con-
nection which the stockholders Of the Missouri,
Kansas and Texas Railway had secured, the con-
troll of which gave TO the Southern division a
direct connection at Denison with Kansas City.
At the same time referred TO an order of the
court appointing a committee to adjust the earn
ngs of the Northern division, covered by the
consolidated : per cent bonds, and the road south
Of Denison, covered. by the general Us
and IS mortgage bonds. 1t had been
claimed by the trustees of the consolidated
per cent bonds that sX-sevenths of the net earnings
wore derived from the road north and east OF
Denison. The decision OF the courts committee
is that the railroad south of D2nis"n ought, in
view Of its shorter haul and terminal expenses,
be allowed q constructive mileage of one and
one-half for each mile Of actual haul The
application Of this rule, which probably would
bC enforced il case Of div son OF the property
will increase the net earnings of the Southern
division to nearly 80 per cent of the entire net
earnings OF the whole system, instead OF about
| 5 per cent, as they have been represented 10 be
10 the holders of consolidated 2 per cents. We
are espOusing neither the of tho consolidated
7 per cents nor Of the general 6s and SIS. But il
will be well fer all interests that the property be
kept intact which will not be done if the holders
of the per cent bonds maintain their pres mt
position under the dclusiOn that their portion of
the road really contributes siXseventhS OF the net
earnings of the whole system.
To-days stock market WAS intensely dull, and
recorded only Ill ,242 shares for the general list
and 9222 shares for the " unlisted stocks
Nevertheless it was strong all the way ont The
Big FOurs and the Chesapeake and
Ohio with small transactions made further
advances, and closed str,ag. something off the
best figures. In the granger list the prepared Chi
cago Interviews fell fiat, and did not exert their
expected influence on values London came strong
and higher than Saturdays home closing figures
and was an early buyer in this market When
action, but il was temporary affair and Quickly
recovered from when buying orders for small lots
appeared. Philadelphia and Reading was an eX-
ceptiOn to the general rule. and under free sales
declined TO AZ 5-S but recovered TO AZ, and closed
at that fgure-3-4 lower than on Saturday, after
transactions in $1,000 shares, or more than one
half the total number of shares dealt in. Tho
loan market developed q large borrowing demand
for nearly all the active stocks. Missouri Pacific
and Reading Were in particular demand. The
general market closed dull and strong.
THE Oily IN THE BOND MARKET.
Government bonds were quiet and easy at quota