Real  Estate   Record





AND BUILDERS' GUIDE.





Vol. XXYIII.





NEW TORK, SATUEDAT, OCTOBER 8, 1881.





No. 708





Published Weekly by The

Real Estate Uecord Association

TERMS:
ONE TEAE, in advance.....$6.00

Communications should be addressed to

e. W. SWEET, 13T Broadway.

J. T. LINDSEY, Business Manager.





FIELD, COWING AND  MANHATTAN.

A very refreshing document for a Manhat-
t?^^ stockholder to read, and one most likely
;d>^ive him a pungent idea of how great a
swindle he is innocently connected with, is
the affidavit of James A. Cowing, who is
n<}w, and has been for the last nine years,
the treasurer of the New York Elevated
Railroad Company. The affidavit named
was made in the recent suit of the New
York Elevated Company against the Man¬
hattan Railway Company, and is one of a
series made in the legal proceedings by
which it is intended that the New York
Elevated Railroad shall regain possession
of its property, and, at the same time, have
the Manhattan Company declared bank¬
rupt,  and its lease null and void.

To understand this affidavit properly, it
must be borne in mind that in 1879,
when Cyrus Field, James A. Cowing,
and'their co-directors leased the elevated
railroads to the Manhattan Company, that
the fixed charges fastened by them upon
this corporation for the lease were $2,400,000
per year. Now let us see, according to Cow-
ing's affidavit,how far these originators of the
Manhattan company were'justified in loading
it at this rate. Cowing swears that the Man¬
hattan Company took possession of the Ele¬
vated roads in June 1879, and at the time of
the delivery of the New York Elevated and
Metropolitan Companies to the Manhattan
the surplus accrued earnings of each com¬
pany, from February 1879 to June 1879,
amounting to $311,000, were turned over to
the Manhattan company, which amount re¬
presented the earnings of the two companies
for that time over operating expenses. On this
showing it appears that in the four months
of February, March, April and May of 1879,
tne net earnings of the two companies were
only $311,000, or at the rate of $933,000 per
year; and yet these men knowing then as
well as now, that such earnings would not
admit of it, dared to make a lease by
which they fastened a certain deficiency of
$1,000,000 yearly on the Manhattan Com¬
pany. One can hardly believe that so
stupendous and palpable a swindle was
possible, and certainly it takes a goodly
amount of assurance for the very men who
were the most active in foisting such an out¬
rageous lease on innocent holders, to now
come before a court and ask for the dissolu¬
tion of the company they created.

But this financier teUs his own story
when he says, further along in his affidavit,
that theire has been no month since the
Msnhattaa Company commenced to operate





the roads, when its net earnings have not
fallen considerably behind its fixed charges
and dividends, and that this deficiency exists
without taking into account taxes of any
kind, and that the actual figures are at
the rate of over $1,000,000 per year.

How, under the sun, we ask, could it be
otherwise ?

Now, let us see in the same proceedings
what the astute Mr. Field swears to.

Mr. Field, in his affidavit, says that he be¬
came a director of the Manhattan Company,
November 5, 1877 (mind the date). At this
time the Manattan Company had only its
charter and a little office furniture, and it
was not until the 20th day of May, 1879,
that the tripartite agreement was signed,
and the lease of the elevated roads saddled
on Manhattan. On the 21st day of May,
1879, Mr. Field resigned from the Man¬
hattan Company, and a few days there¬
after started for Europe. New York Ele¬
vated stock at that time was selling for
about 200, and this was the figure at which
Mr. Field was willing to unload, but this
was so good a thing that he went to England
to give a slice of it to his friends there, but
how his plans in this respect were frustrated
by Tilden, who sold out on him, is too well
known to call for repetition now. Field, on
learning of what he called the treachery of
Tilden, immediately returned to this country,
and, in July, 1879, again went into the Man¬
hattan directory. Then began the blowing
up of the Manhattan balloon. AU kinds of
stories about enormous earnings, light ex¬
penses, statistics of possible increase of
travel, &c., were put into circulation, and
the stock began to rise. State Engineer
Sweet even went so far as to say that the
expense of running the New York Elevated
was only 31 per cent., and that it could be
brought down to 25 per cent. This lie was
put into an official document, and many
people having faith in that statement,
thought the stocks must be a good
investment, bought, and, of course, were
left high and dry. Mr. Field, how¬
ever, knew better, and when the stock
reached the sixties he sold, and in his
affidavit acknowledges to having sold
his stock in the month of November at
about $61 per share. Directly afterward he
again went to Europe, so as to be out of the
way when the inevitable decline should set
in. He returned again in a few months
and began abusing Manhattan stock and
everybody connected with it. Of course he
dared not just then attack it too violently,
as he could not well explain why, if he had
just before been a holder up to 60, it should
so soon become worthless. Shortly after¬
ward, he went away on a trip around the
world, and it is only since his return that he
has made an open, unconipromising fight
with the Manhattan Company.

"When the Atlantic Cable was completed,
it win be remembered that at the celebra¬
tion held in New York, one solitary message
Was received^ whereupon the cable ceased
working.   The shaieis which had been coni-





manding a high |figure suddenly fell, and
somebody bought them up. After a time it
was found that some one had tampered with
the cable ; a nail had been driven into it in
the interest of some speculative scoundrel
who wished to buy the shares cheap. Sub¬
sequently, a great deal of money was made
out of the Atlantic cable, and among others
who got rich by it was Cyrus W. Field.

CHRONOLOGICAL DATA.

Nov. 5, 1877—Cyrus W, Field first becomes connected
with the Manhattan Company, which
at this time had nothing but its char¬
ter; no money, consequently some¬
thing must he done for it.
May 20, 1879—Lease of elevated roads made to Man¬
hattan Company, wherein this com¬
pany, without capital, agreed to pay
$2,400,000 per year.
May 21, 1879—Mr, Field prudently resigns from the

Manhattan Company,
July, 1879—Having failed to sell bis stock in England,
he returns to this country and again
becomes a director of the Manhattan
Company,
Nov. 10, 1879—Sells all his Manhattan stock at about

$61 per share.
Decern., 1879—Thinks it prudent to again take an Euro¬
pean trip.
March,  1880—Returns to this country and sells thir¬
teen sharesJVIauhattan, just enough
for a poor widow who wanted a good
investment,
July,  1881—Begins suit to recover his property, and
prays to the Court to declare tho
company bankrupt,  the shares of
which in Nov,, 1879, he sold for $61
per share.





THE MONEY MARKET AND VALUES.
The figures printed in the financial jour¬
nals to-day, will show that the railroads did
a much larger business in September of this
year than they did during September of the
previous year. The August returns showed
an advance of 233^ per cent, over the same
month last year, and 1880 was 34 per cent, in
advance of 1879. There has undoubtedly
been loss of traffic on some of the grain roads,
but the aggregate railroad business of the
country is larger to-day than in any other
p'eriod of our history. Yet, at this time last
year prices were advancing on an excited
buU market, when to-day prices are steadUy
receding after having gone o£f an average of
over twenty points.

How is this to be accounted for ? WaU
street responds that the difficulty is because
of tight money, and that tight money is due
to the absorbtion of current funds by the
growing business of the country, as weU as
by the demands of the speculators who are
bulUng corn and wheat. Whatever the rea¬
son, the fact remains that prices in WaU
street have started downward, and there are
not many comforting assurances for the buUs
in the immediate future. Europe wants aU
her gold, and the great national banks abroad
are putting up their rates of discount so as to
retain their money. Instead of gold they are
sending us goods. Our speculators have so
advanced the price of cotton, com, and
wheat, that exports are Ught—so very little
exchange is made. Secretary Windom, it is
said, wiU do nothing more for WaU street.
Tight money may break the Chicago comer
in grain, ^which would be a benefit to the
country.

Of course, the tide wiU turn some time.

Prices cannot always go down, any more than

than they can always go up, and there wiU

:>be more thau one buU market before the