Year: 1872

ST0CD HBvERIsH AND L0wBR.


The stock market while still IN dull mood, was
feverish and Densitiye with ct the close, sudden
and sharp decline, led BY Northwestern, which
went on to 7sx, - against ssX early in the day
on the o1oial action Of the board Of directors in
authorizing an issue Of go 900 Of convertible
bonds, the proceeds to be devoted to paying for
newly constructed branches and acquired roads
ana 70 the equipment thereof At least such u the
ostensble object for which the bonds are created,
or 70 be created, FOR under the laws Of the Stock
Excnange the new Issue


oAxnof n nARxyrED


withous the preliminary thirty days. notice to the
board, but the gossip OF Wall street has it that
pool clustering around the venerable Daniel Drew
were "shortn Of Northwestern to the extent Of
many thousands Of shares and after failing to
come TO asettlement with the ''bull' pool, headed
by Jay Gould and the leading operators in Lake
Shore, were driven to the necessity Of making an
issue Of bonds convertible into stock) to disrupt
the tightening folds OF the threatened "corner.n
This Is the Interpretation put upon the AFFAIR this
evening, and u given for what it is worth. There
is no doubt


THE NoR5uwEsTERN ROAD


has built and boughSa great many branches ana
feeders the past year or two, so that the new issue
may be perfectly legitimate matter. But the
creation OF the new convertible loan Just at this
juncture is evidently connected with the specula-
tion already referred TO- the purpose being de-
preston Of the stock which shall allow the pool to
cover and close their contracts. The new issue
does not OF itself break the 'cornern for the new
stock, made out Of the convertible bonds, Is not
good delivery until after thirty days. notice to the
Stock Exchange, SO that the "bullsn may mean
time press the corner" to the serious pecuniary
loss Of the "bears." Indeed, IN view OF the dis
uh-cO m ton in fho
of issuing


THE NEW BONDS,


IL may be that the ''Dears, have resorted to this
method OF inducing the 'bulls" TO make settle
ment, the accomplishment OF which would put an
end to the convertible bond question until-the
next time. Meantime Pacific Mail had been unset
tied, and In this decline went Off to Oily. The gen.
eral market is inclined to disconnect itself from Pa
cifc Mail and act independently Of the movement
In that stock. In this period Of the day Western
Union Telegraph fell one and q half per cent, and
the rest OF the more active shares half to one and
o quarter per cent.


THE NEW YORK CENTRAL MORTGAGE
loan, which has been under discussion for some
time, was duly authorized at meeting OF the d.
rectors held this morning at Commodore Wander
bilts ONCE The amount is $40, 900, OF which
$1t,oooooo win be appropriated to cancelling the
present bonded debt The remaining $25 0oO 600
win be devoted to laying new double track all
the way between New York and Buffalo, making
quadruple track (of eight rails) between the two
cities, the enterprise to be completed within two
years. The bonds will bear interest at the


RATE OF SIX PER CENT,
and as they will be secured by first mortgage and
be, therefore, first lien on the vast property Of
the New York Central corporation ready market
for them is anticipated, particularly in London,
where the whole loan will probably be taken at par
as soon as offered, the time for Its negotiation hav-
ing been selected when European confidence in
American finances will have been confirmed and
perpetuated by the reelection OF the present ad-
ministration. The new mortgage win add an an
nual interest charge OF only $15ooO0o TO the pres
ent expenses OF the company, while


THE DOUBLED FACILITIES
II will furnish will increase the earning CAPACITY OF
the road In ratio OF not less than so per cent the
first year the entire Improvement Is in operation.
The experience OF the Lake Shore and New York
Central Companies is coincdent that an ADEQUATE
supply OF facilities Is all that is necessary to divert
the internal traic OF the country to the railroads.
10 the exclusion OF the canals and many OF the
onger and poorly navigable river routes The
manner In which provision is made for obtaining
he means OF adding the two extra freight tracks
o the New York Central road silenccs the popular
objection TO


TIE STOCK WATERING PROCESS,
II which New York Central has been too notorl
'us illustration. The capital stock is to remain as
o the even 500, 100000. Meantime 1t will be Com
nodore vanderbilts aim to accomplish his ambi-
len Of making Central ten per cent stock, like |
linz. IN an