March iii 1899.





Record and Guide





413







PRICE     PER   YEAR     IN   ADVANCE    SIX   DOLLARS

PublUlud every Saturday.

TBI.EFHONK,                                                   COBTIiANDT  1370.

Qommunloatlona should be addressed to

C. W. SWEET, 14-16 Vesey Street,

J. 2. LLNDSEY, Business Manager.

" Entered at the Post-OSice at Sew Yorlc,N. T., ae second-class mailer."





Vol LXIII.





MARCH 11, 1800.





No. 1,G17.





SOME outside buying came into the Stock Market at the close
of the week as a response to reports of a better understand¬
ing among anthracite producers, new alliances or conibinationa
In the railroad world looking to economy of management and
some otber features from which favorable deductions might be
drawn. But it is not reasonable to suppose that a new bull
movement can be started so soon after one, the greatest In the
history of the street, has closed. It Is always the case that par¬
ticular securities move in a direction contrary to the general
movement and this is likely to be more marked now at a period
of reviving industrial and commercial activity than ever before,
but the general tendency is and will be downward until the lia-
uidation that naturally follows an extended speculative movement
has run its course and prepared a proper foundation for a new
advance. A fact tiiat is likely to have a particular effect on rail¬
road securities is the large proportion of the Increased earnings
now being reported that must be used to improve the plant of
the companies. The annual report of the Pennsylvania Railroad
Just issued shows this conspicuously. On the eastern lines the
increase in operating expenses was greater than the increase in
gross earnings, and on the western lines the cost of operating
practically absorbed all the gain in gross earnings. Pennsy, as
it Is called among railroad men, stands for the best railroad man¬
agement this country can produce, and its example will be fol¬
lowed by other properties of reputation. It is noticeable, too,
that a further reduction in the average ton-mlle rate on freight
Is reported by this road, showing the apparent Impossibility of
keeping up rates under the system of unrestricted competition
which has been forced upon the railroads by the law as last in¬
terpreted by the Supreme Court. What makes this most aggra¬
vating is that it would require such a very small contribution
from the travelling and shipping public on the immense bulk of
travel and freight that the country affords, to wholly change for
the better the railroad situation. This contribution could be
gained under authority to pool rates, and 23 an economic prop¬
osition to benefit the country as a whole, deserves consideration.
This week the holders of St. Paul common have felt disappoint¬
ment because the half-yearly dividend was not Increased above
the 2^2% it has lately been customary to pay, but the directors
who decided to retain a good surplus in preference to increasing
the dividend were moved to da so by the knowledge their espe-
rience must have taught them, that prosperity does not endure
forever, and that its period is the one in which to put their prop¬
erty in a state of complete efficiency. They know also, and the
knowledge doubtless had its proper Influence in determining the
amount of dividend, the uncertainties of the rate situation.





ANOTHER catch phrase has been added to the political
cant of the times ia "the embodiment of the feelings of
a peaceful, determined nation," of which Mr. Goschen, the Brit¬
ish Chancellor of the Exchequer, is the author, and which he
manufactured to explain the increased naval vote asked for from
the House of Commons, Verbally, the difference is very great,
but essentially it means just the same good old plan "that those
shall take who have the power, and those shall keep who can.'"
However, the new phrase pleased the audience it was addressed
to, and now another huge addition will be piled on Britain's
naval armament. Taken in connection with the news from
China of another Russo-Eritish clash there. It would seem to be
anything but a peaceful measure, though determined enough in
all conscience, if experience did not assure us that war Is very
unlikely, though the mailed fist may be very much,In evidence
in the next week or two—especially in the newspapers. Until
one of the two great dominating powers at odds in China has
been successful in its policy, these outbreaks are sure to occur
with tolerable regularity and just as regularly alarm business
Circles.   Nest to foreign political complications the probabilltlea





of the money market form the most influential factor in the Eu¬
ropean business situation. Given the rule that cheap money Is
necessary to a continuance ol the commercial prosperity that
has been almost uninterrupted for six years, these probabilities
point to a reaction, if not to a setback. Although only at the
opening of the active season, money is already tightening in Lon¬
don, and Berlin may still be regarded with some anxiety. In the
latter place relief is expected from the new banking bill, but
the Reichstag Is proceeding very deliberately with that measure,
and the Imperial Bank has made reductions in Its abnormally
high rates of the winter witb the utmost care and conservatism.
as if it feared a recurrence of the stringency suffered for a good
part of last year, and which will surely ensue on a failure of the
Reichstag to pass the bill mentioned. The sudden decline In
the British governmental receipts must also be taken into con¬
sideration in a review of the business situation. For the first
three-quarters of the fiscal year there was a considerable sur¬
plus, but now with only half a month to complete the year th*
deficiency runs Into millions, and this with the increased expen¬
ditures for the coming year makes heavy additional taxation
necessary. The sources cf decline, too, Indicate relaxed manu¬
facturing and commercial energy. According to a recent dis¬
patch there was a decline of 57,000,000 in customs. $12,000,000 In
excise and $24,000,000 in receipts of income tax. Up to this time
the increases in the naval budgets have stimulated business, in
fact, the prosperous business Britain has experienced took Its
first Impetus from government expenditures for new ships, but
up to now these expenditures have been accompanied by sur¬
pluses, and It remains to be seen if their effect will be as satis¬
factory with the revenue falling off and the Chancellor of the
Exchequer having to work to provide means that previously
came spontaneously. An increase of burden on a body that la
losing strength may not have satisfactory consequences.





Worthless bonds to discharge mechanics liers.

7 T appears that the state of affairs which existed a few yeara
i ago In this City in respect to the discharge of mechanic's
liens by giving bonds with worthless sureties again prevails to
an extent which.calls for great caution on the part of matei-Ial
men who may file mechanic's liens, and to whom such bonds may
be presented. It is stated by those who are familiar wltbsuch
matters that there appears to be practically no difficulty In find¬
ing individuals of no pecuniary responsibility whatever who
make it a practice to become sureties upon such undertakings,
and who for a consideration of from 515 to $25 execute bonds to
discharge mechanic's liens, swearing to their sufficiency as such
sureties and making oath to the ownership of real estate which
they either do not own at all or else the mere title to which, af¬
ter the property has been mortgaged for all that it Is worth, has
been transferred to them in order that they may become sureties
for a consideration.

Owing to this scandalous practice material men, who have oc¬
casion to file mechanic's liens to secure moneys due them, are not
only subjected to the uncertainty which attaches to any bond or
undertaking executed by individuals A^-ho, though no fault of
their own or through business reverses, may lose property c!
which they are possessed at the time of the execution of the
bond, and be unable to respond when called upon to pay a'judg¬
ment at the end of litigation In respect to the lien; but also are
too frequently put to the far greater hazard of having their Hens
bonded by individuals who are of no financial responsibility at
all at the very time of the execution of the bond.

The Mechanic's Lien Act provides that a lien may bo dis¬
charged by the giving of an undertaking with two or more suf¬
ficient sureties, who must be freeholders, in such sum as.-: the
court, or a judge thereof, may direct, not less than the amount
claimed in the notice of lien and conditioned for the payment of
any judgment which may be rendered against the property for
the enforcement of the lien; and further provides that the .sure¬
ties must justify, upon oath, in at least double the sum named In
the undertaking; and that after such justification, and upon the
approval of the undertaking by the court or judge, an order may
be made discharging the lien. In other words, the Mechanic's
Lien Act provides that an owner may remove a lien from th©
real estate upon substituting a good and sufficient bond to secure
the lienor for the amount of his claim.

The evils connected with the altogether too common practice
of bonding mechanic's Uens with worthless sureties bave re¬
cently been the subject of consideration in the courts of this
county, as will be seen by a report on another page, to be fol¬
lowed, it is to be hoped, by action on their part and
on the part of the District Attorney to put an end
to a shameful practice. At the same time the atten¬
tion of the material .trade Is called to this state oC
affairs la. order that lienors may be alert to see that imdertak-





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