Year: 1868

and there was rapid advance in the price OF NIL
waukee and st. Paul under speculative operations
based upon the scarcity Of the stock and the sshort


interest supposed to be outstanding In It, but this
advance Is only likely to prove temporary Erie con-
tinues heavy under the speculative influences which
are still at work to depress it; but 1t is fair to say
That these are entirely unconnected with the present
management and that the latter have not been
instrumental in the late decline. The same
stock declined to o lower point in 1866
In consequence OF Mr.. Drew's operations
and because Erie il selling 40 now 1t in no way
fenects unfav0rably upon the directors OF the COM
pany. The report that Messrs. Stewart and Bancker
have yet taken their seats at the Erie board has
been misconstrued, those gentlemen not being in a
position to do so while they remain directors of the
New York Central special act Of the Legislature,
passed early this year, making 1t unlawful for any
one person to be director Of both companies.


Among the miscellaneous shares there was
strong demand for Pacific Mail, which carried it up
to 1854 lo3H at the close. 1t is asserted, ON
good authority, that the extreme frmness of
this stock Of late Is owing to purchases by wealthy
parties, who have definite object in view looking
to the double purpose Of securing controlling
interest in the Pacific Mail Company at the next
annual election. on the third Wednesday in November
and Of Withdrawing the opposition on terms mutually
advantageous to both the Pacific Mail and the North
American Steamship companies. 1t is well known
that both have been losing money heavily since the
opposition commenced, and the sooner an amcabe
settlement is brought about the better for those
cerned. 1t is proposed by the parties in question,
who are already very large Pacific Mail stock
holders, that the Pacific Mail Company should
purchase the vessels Of the North American Com
pany by exchanging for them the 20 GOO shares Of Its
own stock, which 1t holds upon conditions which
are eminently just and equitable It is represented
that while the terms Of the proposed settlement
advantageous to the North American Company they
are particularly to the Pacific Mail Company, and
will secure to 1t almost beyond question the control
not only OF the traffic between New York and San
Francisco, but also OF the trade of the west coast
OF South America, it being one of the
conditions Of the contemplated arrangement
that the new ships acquired from the
North American Company shall be used to establish
. line from Panama to Valparaiso touching at the
intermediate p0rts for which service the ships in
question are admirably suited The establishment
of this line will enable the Pacific Mail Company to
receive not only the benefit Of the trade between New
York and the ports Of Chile and Peru but to control
and retain for itself the large and rapidly increasing
traffic between those ports and San Francisco. The
carrying trade between Panama and the west coast
OF South America having been heretofore done en-
tirelyb by the lines Of English steamers established
there its extent and Importance but little under
stood here beyond the small number interested In the
management OF the Panama Railway. Its value,
however, as well the advantages accrue to the
Pacific Mail Company by the establishment of the
line, may be estimated to some extent from the fact
that for years the Panama Railway Company has
derived more than double the amount Of annual
revenue from the traffic over its road to and from
che ports upon the west coast Of South America that
it has received from the tranic between New York
and San Francisco. 1t is also proposed that the
Pacific Mail Company SHALL Immediately upon the
exchange being completed, make weekly trips
with It's line from New York to San
Francisco, and, whenever necessary, send
extra steamers from New York to Aspinwan
for the accommodation Of the freight trafc. Is,
moreover to advance its rates for the transportation
OF freight and passengers much as may be requi-
site to enable the company to hereafter regularly
pay to its stockholders quarterly dividends OF four
per cent and to accumulate surplus fully equiva-
lent to any depreciation Of its property. To accom-
psh this result advance detrimental to the traic
over the different lines 10 be by the company will


be necessary for the reason that they will then have
the undivided business The volume OF passenger
and freight trafflc combined between New York and
San Francisco at the present time much greater than
at any former period In the history of the trade ana
with the splendid fleet Of new steamers now owned
by the Pacific Mail Company under Its present efficient





confidently rely upon future for their property
OF permanent prosperity. 1t Is worthy Of note that
the proposed arrangements and exchange are In
no particular burdensome upon the Pacific Mail
Company, no increase Of Its capital or debt
being involved, while they are in double
sense advantageous-nrstly, BY relieving the New
York and San Francisco business from all cOmpeti-
tion, and secondly, by giving to the Pacific Mail
Company in exchange for its unproductive assets
the ownership, profits and accruing benefits Of the
line upon the west coast Of South America, formed
with new ships adapted to the trade and so far su-
perior to those of the English line as to command
ahe trafc, and in addition to all, the further advan.
tage of 30 combining with itself through the stock
30 be exchanged for ships such controlling interests
as to render 1t certain that no opposition will here
after be run upon any portion OF the
company's route. It Ia confidently expected
shat the stock will advance largely in the probable
event OF the completion Of the exchange "a pro-
posed, and we can see no reason why 1t should not
do view Of the position Of the company secured
from opposition and with the large trade which will


at once accrue to the new line in addition to the
present business hence to San Francisco. The China
line being already firmly established upon paying
basis there would to be every reason to believe
that the Pacific Mail Company s about to enter upon
coprse OF prosperity far greater and more perma-
.nent than any 1t has heretofore achieved.


The gold market has nuctuated between IA and
i45 with the opening transactions at 14i1 and the
closing ones prior to the adjournment Of tho board
at three O'Clock at las. subsequently, however, the
bears, who had been active In their operations all
day. forced a decline to Has, and the latest quota
tlou on the street was 144h 144%. There was an
active borrowing demand for coin, and loans were


made without interest and at from two TO three and
half per cent for carrying. The gross clcarngs
amounted TO 9o75o,Ooo, the gold balances to
sls7l. .5i9 and the currency balances to s2,s1s, 26
Money was In very abundant supply at
four per cent, the banks having large unemployed
surplus, and In some instances loans were made on
government securities at three and three and a half
~ kttances Of currency westward this week are