The herald., 1897-04-30
oFFcE OF THE HERALD.

dustrial depression, growth and devel-
opment to be compared to that OF the
municipal bond permanent investment
business.
The circular of the First Municipal
Bond Assurance company. recently is-
sued, suggested that in all probability
at least $50, 900 900 of municipal bonds
will be issued every year-an estimate
which appears entirely too low, in view
of the fact that the sales of municipal
bonds during the first three months OF
the present year alone have aggregated
$Se,420,4 4SS, which means. If the sales
are maintained at an equal rate, that
nearly s16o, 900 900 Of bonds will be sold
in 1897.
But the first two weeks of April show
sales of over $40, 600 of bonds. with
nearly 100000 advertised to be sold
during the same month. and the proba-
HIity is that the bond sales for April
will reach s19,0oO,00o.
The plan for refunding the New York
Central and Hudson River bonds at a
lower rate of interest has been made
public and has attracted wide attention,
more particularly because 1t Is regarded
as n tangible evidence that the most
responsible railroad and banking au-
thorities are satisfied that rates can be
maintained and harmony preserved in
the face Of what was at first feared
would be the disorganizing influence
of the transmissouri decision. In this
respect 1t Is held, indeed, that the ef-
feet cannot fail to be highly beneficial
to the entire market
The negotiations take the form of a
syndicate operation, headed by Messrs.
j. p Morgan & Co. of New York and
J. S. Morgan & CO. OF London, ana III
which a number of very prominent
financial houses both here and in Lon
don will be interested. The plan
is to issue a 100-year 31s first mortgage
for 500, 600, 900, with which to raise the
present bonds of the New York Gem
tral and the New York and Harlem,
which latter is leased to the Central.
The aggregate of these issues is $50,
$4,000, and of the new 3is per cents sS5,
600, 900 Is to be employed for the conver-
sion plan, under terms of exchange which
win be given to the bondholders and the
public later on. 1t Is provided that any
portion of the sS5 900 not used in the
exchange for and retirement of the old
onds may be sold for caeh and that $15 =
900, 900 of the 500 000, ,00O of new 31as shall
be devoted to the new construction after
1908 The estimates which accompany
the plan are that, on the supposition that
all the bonds are converted, there will
be a saving in fixed charges of at least
$1,O00,0 900 per annum, equivalent to per
cent on the capital stock of the company.
In fact, the theory of the street on the
subject is that the Central is to be put
on a cent basis, and though this may
have to be qualified, there Is a little doubt
that an increase in the dividend rate will
be in order when the refunding is ac-
complished.
The substitution by the senate of the
Nelson bankruptcy bill for the Torrey
measure Is to be regretted, according to
Bradstreet's. which Gays of the event:
The vote in favor of the bill was 40 to
s, the total showing that there was not
q very full attendance. The measure
thus passed by the senate is primarily
q voluntary measure, though ii contains
some provisions regarding involuntary
bankruptcy. Under it any debtor, other
than a corporation owing 5000 or more,
who Is unable to pay his debts may file
q petition asking for a discharge, and
offering to surrender all his property,
except such as is exempt by the law OF
his domicile, for the payment of his
debts. The proceedings may be resisted
by creditors on certain enumerated
grounds Preferences within four months
prior to the filing of a petition and trans
fers of property within six mon tbs there
of are void. Proceedings may be brought
to declare bankrupt any debtor being
a banker. broker, merchant, trader or
manufacturer who owes $500 or over,
who Is unable to pay his debts, and
who shall at any time within four months
of the filing of q petition assign, trane,-
fer or incumber his property with intent
to defraud his credators. This mea asure
will not satisfy enlightened public senti-
ment as the Torrey bill would have done,
and Its success in the house is more than
problematical.
The following is an interesting deci-
sion on the question of insurable interest
OF mortgagee: The supreme court of
Louisiana held, in the recent case of
Cannon VS.. Home Insurance company of
New Orleans, that the interest of mort
gagee Is distinct from that of the mort
gagor and is insurable that where
mortgagee. Of his own notion, takes out
insurance in the name OF the mortgagor
or owner of property. without authoriza-
ton of the latter, and causes loss, If
any, to be made payable to him (mortga-
gee). it is in effect insurance by the mort
gagee of his interest. for his account;
that such insurance is not .'other insur-
ance," which vitiates the prior policy of
the mortgagor; that in order to consti-
tute "other Insurance." avoiding pre-
vious policy, the additional insurance
must be upon the same subject. risk and
interest, efActed by the same insurer or
for his bendf1t, or with his knowledge or
consent; that neither identity of name
nor identity of property is decisive upon
the question; that the interests covered
by the policies must also be Identical.
and that the rule governing provision
for apr4rtionment OF the loss, where
there is no other insurance. is that such
apportionment only takes place where
the Insurance covers the same interest.
An anti-rebate bill has been intro
duced in the Illinois house by Mr.. La
Monte making the giving of a rebate in
any form by life company or an agent