The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-12-06
INDUSTRIAL TOPICS.

The November tonnage was less than
5,OOOOO tons,
To reduce expenses. Van Wickle's
Milnesville colliery has laid off 100 men,
The Jersey Central for October
showed a net decrease in earnings of
$1S9, 112.
Thomas Evans, formerly assistant
mine foreman at the Red Ash No. col
liery, left Tuesday for Pottsville where
he is to be mine foreman in Hon. NJ. b.
Williams mine.
The coal situation remains practically
unchanged, ana there Is a pretty gen
eldl belief that the producing COM
panies will this month, at least, adhere
strictly to their respective allotments.
In prices also there Is a disposition to
adhere to the circular as nearly as pos
sible.
"The new company which recently
purchased the Annora Coal company
from Charles Parrish have had bad luck
in the destruction of their breaker by
fire just as preparations We're being
made to resume work brlsker than ever.
Reese Brooks of Scranton is the princi
pal member Of the firm, and accustomed
as he is to face all manner of discour-
agements resolutcly, he will not" says
the WilkesBarre Record, permit this
misfortune to embarrass him long"
The fiscal year of the Lehigh Valley
railroad ended on Nov. 30, and enough Is
known to warrant the announcement
that, Notwithstanding the depression in
business during the year past, the earn
ings have been sufficient to pay full
fixed charges and interest and leave
small surplus beside. Heretofore the
company has not put forth its annual
statement until the annual meeting in
January but it is intended to depart
from that custom this year, and the re-
port will likely be issued 70 the stock
holders at least a week in advance of
the meeting.
E. II. laval, says the Wilkes-Barre
Record, is not seeking the presidency of
the Le'high Coal and Navigation com
pany. but if it should be offered to him
he would give the proposition very seri-
GUS consideration. OF course Mr. Law
all Is so well situated now and has his
collieries in such excellent shape that
only something very big could tempt
him to make change. 1t is quite true
that the Lelsenring family want him to
succeed the late L. b. Leisenring, but
others must be consulted. George ID.
McCreary, the treasurer of Philadel-
phia, is large stockholder in the COM
pany, and If he should want the presi-
dency it is very likely that his wish
would be gratifled.
An interesting lecture on some Of the
financial problems of railroad manage
ment was delivered last Friday evening
at Ithaca, N. Y, before students of Cor
Eell university by Thomas l.. Greene, of
New York, secretary of the Anthracite
Coal Operators association. The Ithaca
Journal says he spoke first of the leglti-
mate method Of watering" stock and
told why 1t Is done. Bonds and shares
In large corporations must be issued at
par value. If then the intrinsic value
of the stock is increased, either large
dividend must be paid or the stock must
be watered by giving shares for which
no equivalent is received. The former
method Is by far the better but unfor-
tunately public opinion will not sanction
high dividends and so the second meth
cd has to be resorted to. 1t is general
opinion that the dividends Of corpora
tion should be no greater than the
ordinary rate of interest, while really
they ought to be more, because corpora
tions take great risks In organizing a
business and they are entitled to be
compensated for taking those risks. The
difficulty with watering stock is that 1t
is next to impossible to reduce the stock
in case profits fall off. The evil effect
is then seen in the checking of facilities
as expenses are cut down in order to
keep up the dividends So poorer SER
vice is given to the public. Mr. Greene
dwelt at some length on the various
kinds of bonds. He brought out the
fact that railway bond is a mortgage
on the earning power of the road rather
than on the property itself Twenty
five per cent. of the railroads of this
country are insolvent This is due main
ly to the cutting in freight rates. All
the railroads are beginning to show
weakness on this account and some
thing will have to be done. Mr.. Greene
believes passenger rates are high
enough. At the conclusion of the lee
ture, conference was held which
brought out several new facts of inter-
est. One rather curious one was that
stock which is paying 10 per cert. may
bring only 100 on the market but If it
be doubled by watering, the shares now
paying per cent. may be sold for par
| thus realizing 200 frn,n stnnls ,uhinh hn