Columbia University Libraries Digital Collections: The Real Estate Record

Real estate record and builders' guide: v. 47, no. 1206: April 25, 1891

Text version:

'Mil. u pllT^ IftfiB. ^ ESTABUSHED-^MAReHSl-^^IBSB., Dr/oTtQ TO FHL EswE. BuiIdi|/g A^ci(lTEcrTut^E .KouseHou. DEGQflATW*. Basl^JESS AtbThemes of GeNeR^l ^m^^^^f PRICE, PER YEAR IN ADVANCE, SIX DOLLARS. Published every Saturday. TbUEPHONE, . - COKTLAHBT 1370. Comm-otnications should be addressed to C. W. SWEET, 191 Broadway J. T. LINDSEY, Busineas Manager, Vol. XLTII APRIL 25, 1891. No. 1,S06 NOTICE OF REMOVAL. TM offices of The Record and Guide will be rernoved to Nos. 14 and 16 "Vesey street, over The Mechanics' and Traders* Exchange, on May lst. ALL the woes of Wall Street ate generally laid to the door of that vague but very powerful entity known as the general public. If business is dull, it is because the public are out of the imarket; if business is active, it is because they have returned to their proper places. This public undoubtedly has something to do •with the rise in quotations, which is at present taking place; but the more powerful force, obviously, is an able and active bull clique, ■which is sending prices up with really very little opposition. The -single depressing influence has been the constant shipments of gold. "Whenever one of these shipments was announced the market reacted half a point, only immediately to recover and continue on its rising course, thus showing the strong arm behind it. As the general public need to be tempted into a market by promise of easy profit, it may well be imagined that if the present bull party can continue taken up by outsiders and The Times of Thm-sday, in its lowing : " One funny incident its hold, ' stocks will be advanced ac a merry pace. " Wall Street Talk," had the fol¬ of the day yesterday was the campaigning undertaken by manipulators of Pittsburg, Cincinnati, Chicago and St. Louis stock. Though it has not been on the tape before in any conspicuous way for months, and though the road is not of enough consequence to have a list of its Board of Directors quoted in "Poor's Manual," the Stock Exchange ticker was fairly kept jammed yesterday \*ith the announcements of transac¬ tions in the stock—which is funny and may be profitable." The same paper, taking a contemporarj to task for a gross mistake, recorded as "a curious fact," says, "this would certainly be curious if it were only true. Many other things would be curious if they were true." Now, the facts are that this inconsequential company was created m June, 1890, so that, of com-se, no list of its board of directors nor much else connected with it could be discovered by reference to " Poor's Manual" for 1890, the last issued ; but fancy a writer on financial subjects not knowing that th's stock listed on the New York Stock Eschange was that of one of the greatest corporations in the country, formed by tbe consolidation of all the principal lines controlled by the Pennsylvania Railroad Company west of Pitts¬ burg, excepting the Fort Wayne, its officers beiug substantially the same as those of the Pennsylvania. The same day the above appeared in the Times they were engaged in declai-ing a dividend of 1 per cent on the preferred stock of the P. C. C. & St. L. from the net earnings of that company for the three months ending December Slst, 1890, being practically the first three months of its existence—a dividend which, it is understood, would not be declared were it not that the history of the separate companies shows their entire ability easily to earn 4 per cent, annually on the new preferred stock, no matter whether crops are good or not. It is just such printed " talk" which make most of the Wall street paragraphs appearing in the great dailies not only valueless but misleading. As for any¬ body who was deceived into buying shares by the manipulation referred to, they can now sell them out at a very handsome profit. This is a kind of manipulation the public will nevt-r seriously object to. For the further information of the young man of the Times and our readers we will say that the preferred stock of the P., C, C. & St. L, is limited to 4 per cent, annually until after the common shares shall have received 3 per cent annually. " After payment of 3 per cent, per annum on the common stock, 1 per cent, additional shall be paid on the Preferred stock. After payment of said additional 1 per cent on the preferred stock 2 per cent additional shall be paid on the common stock. After payment of said additional 2 per cent on tha common stock all net earnings found and declared as afore¬ said, or so muph thereof as the directors shall deem proper, shall be paid in equal percentages on all outstanding common and Pre¬ ferred stock of the Company." So that now the common shares selling at seventeen are within easy distance of dividends. In¬ deed, it is predicted that the full 3 per cant applicable to divi¬ dends on the common shares will be earned by the company this year, making it, perhaps, tbe lowest-priced speculative stock on the market. ---------•---------- IT is understood that there was but little response from the public to the invitation to subscribe to the bonds of the Akron & Chicago Junction Railroad Company which we treated of at length last week. This is as it should be. If the Baltimore & Ohio Rail¬ road Co. is willing to make itself unqualifiedly liable for the $1,500,000 required to build this piece of road, why does it not undertake the work itself, issuing its own bonds for that purpose ? Investors may well ask themseives why does the Baltimore & Ohio form a nominal company to do this work and have apui-ely nominal company lease the first company, the B. & O. assuming and guaranteeing the lease so as to render the bond paJhtable. Your guarantor, even if a creature of soul and honor, is thus placed two removes away, and at the end of the chain the only resource is a suit at law with a corporation which gives all claim¬ ants a wrestle with lawyers paid by the year, the appearance being in too many cases before complaisant courts. Consequently investors may be pardoned for declining even so well worded an invitation. It is time that corporations should learn that they cannot any more than an individual afford to ride rough-shod over those who have entered into solemn obligations with it or to espect to retain credit when they offer but one answer to those who ask tbat engagements be kept, namely: "The Courts are open for you. We hire our legal depart¬ ment by the year. One law suit more or less will cut no figure in our expense account." A great railroad company will get control of say one-third of a profitable railroad or coal com¬ pany, then, through the bankers, who act as its fiscal agents, will contrive to secure enough additional proxies from brokers carrying the shares for customers to put in its own board of direction, which too often is shamelessly made up of its own officers and directors, none of them having any personal interest in the property. Now, before the law the men thus presenting themselves to be voted for as directors offer to become trustees for all the stockholders, and if elected take an oath that they will honestly and faithfully perform their duties as trustees representing all the owners; but if one of them should attempt, ever so mildly, to resist an imposition or resent any crime against the smaller company proposed by their masters in the larger one, how long does any one suppose he could retain any position he held. What does happen is this, thei/ simply do as they are told, and lend themselves to give the appearance of legal form and regu¬ larity to whatineffectisnoihing but downright, unblushing robbery of the scattered owners, for in many cases these scattered owners represent a clear majority could they be gotten together, andthe older the corporation the more the stock is sure to be distributed by death and partition among heirs or held by trustees and esecutors. In the last report of the Chicago, Burlington & Quincy Eailroad Com¬ pany it is shown that of nearly 13,000 shareholders over one-half are women, minors, executors or trustees. A similar state of holding in a small company renders it an easy prey to wreckers or to competitive larger companies, who, in the manner described above, contrive to get in the management, assuming the trustee¬ ship BO as to freeze out or tire out tliis nebulous, dispersed owner¬ ship. This evil has become so serious that it well deserves the attention of legislators; and the men, who in theirdailywalk would resent the imputation that they belong to an organized band of , brigands, should be shown in their true colors and the public made to understand who and what they are. THE total foreign trade of Great Britain, during the March of this year exceeded that of March, 1890; for, although there was a decrease of about 3i-^ per cent in the imports, the exports increased by nearly 8 percent. The decrease in the imports is spres.d thi-oughout all groups, excepting manufactured and mis¬ cellaneous gooda, and excepting hemp, cotton, tin and zinc. The increase in exports took place largely in cotton piece goods. Woolen exports also show a considerable augmeniation, in spite of the falling off in quantity takeu by the United States. In metal exports, the most notable feature is the continued increase in ship¬ ments of tin plates to the United States—38,638 Ihis March, against 17,245 in the March of last year. The iron and steel trade continues to be in a i^st depressed and unsatisfactory condition, and there are few if aDy indications of au early revival, The causes of the depression are stated to be the same which have reduced prices and restricted consumption in this country ; but in case the winter wheat crop turns out as well as is expected, it is probable that the revival will first be felt on this side of the water. English economists are engaged iu discussing some figures recently called to the attention of the public by Joseph Chamberlain, which show not only that one-seventh of the entire population of th»