Year: 1875

LONDON, Dec. 10, 1910.
The principal feature of the week in stock
circles has been the action of the committee
of Erie bondholders, representing the
Watkin interest, which met to consider q
scheme of reconstruction involving the ap-
pointment of another or subcommittee, of
which Governor Tilden, of New York, will
be invited to act as chairman, and likewise
as o referee of the bond and share holders in
America, with the view of taking action, even
though it may be necessary to resort to fore
closure, to the end that the interests of all
parties may be protected and o settlement of
some sort reached that will be mutually
satisfactory.


The details have not yet been fully per-
fected, but it is understood that one of the
main propositions pending is to give to the
bondholders the exclusive voting power until
the road is released from the difficulties by
which it is now environed and is thoroughly
reorganized. An attempt may also be made
to secure reduction of the fixed liabilities
so that they shall more nearly conform to the
interest on the first and second mortgage
bonds. Among other plans it has been pro-
posed that


GOLD STERLING BONDS



running for long period shall be issued,
representing respectively sixty per cent and
forty per cent of the mortgages for which they
may be substituted, the interest thereon to
be pasablein gold after March, 1877 and 1881,
the first at the rate of six per cent and the last
at the rate of five per cent 1t was likewise
suggested that


THE DIVIDEND ON THE PREFERRED STOCK
shall be reduced, and that ON assessment on
the latter shall be levied at the rate of three
dollars on the hundred and six dollars on
the hundred on the ordinary stock, share
third mortgage bonds bearing five per cent
interest, payable only from net earnings.


1t is yet too early to ascertain what are the
probabilities of the success of the plan, and
more definite information cannot be had
until after the adjourned meeting, which is
called for January 4, 1876. The price of the
common and preferred stock during the last
two or three days has fuctuated to an un-
usual extent, and there is yet an unsettled
feeling. For


AMERICAN FUNDS


there is steady demand, and figures are
generally firm. This is due to the peaceful
prospect presented throughout the United
States, the steadiness of its bonds there and
recognition of the fact that, while other
classes of securities have moro or less sue
cumbed to the existing commercial depres-
sion, those to which the faith of the nation
has been pledged are commanding the atten-
tion of home investors.


THE PURCHASE OF THE sUEz CANAL
is still theme of discussion in journalistic
and financial circles. Although regarded
rather as stroke of policy than of finance,
the effect is already seen in the frmer tone
of Egyptian bonds and in the expression of o
peculiarly English determination that, since
the contract is now fact, it shall be made
the most of 1t is believed that the scale of
charges will be materially reduced, and that
the canal will hereafter be more largely used
for commercial purposes than ever before.
Reports have been in circulation that


THE SULTAN


was dissatisfied with the action of the Khe-
dive in making the sale, but the latter is so
thoroughly intrenched behind and indorsed
by the mercantile power of England that
they have had little or no influence in aiding
the purposes of the spectators seeking to
depress the price of Egyptian bonds 1t is
estimated that about seventy per cent of the
tonnage that passes through the canal is
English. Aside from increased commercial
facilities, however, the acquisition is re-
gardsd as q clever stroke by the political
magnates inasmuch as it not only secures
the road to India, but renders the ultimate
fate of Turkey Of much less Importance to
the British people.


THE PERUVIAN BONDS.


Commercial circles are considerably excited
over the announcement that the Peruvian
government will default on its bonds due
January |, 1876. 1t is said that the suspen-
sion is only temporary and is due to a financial