The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1854-12-22
THE FUTURE OF RAILWAY PRO
PERTY.

We are indebted to the Railway Times, for
the following article:
The unexampled fall in the price of railway
securities OF every character, has had one ef-
feet that must be beneficial to the general in
terests of this kind of property. For the past
three Yeas we have been hurrying forward
with the most gigantic railway enterprises,
apparently careless of the aggregate cost Mt
which they should stand when finished. In
The race to secure capital to build many of
our roads, little apparent attention has in
many cases been paid TO the exercise of that
economy which is calculated to insure the
roads Welding an adequate return upon the
cost--the- uj.ctors evidently enough caring
more for the beneficial effects of the roads
upon the real estate and other interests on
the line, than for aught else. In this race for
scapitn, the most enornsous shavps have been
submitted to in both bonds and stock, aud
the premiums offered have been so large rs
to attract very large proportion of capital
from other business enterprises, to their dis
advantage, and the consequent high price of
money throughout the country, and mostly
to this fact are we indebted for the present
disastrous panic. 1t has been the popular cry,
that our railways are responsible for the hard
times and the popular feeling is in some de-
gree right The railways have paid the high.
est price for money, and that price has been
so enormous that our capitalists have TO.
long time looked upon the railway us they
look upon the merchant who for II long while
has been paying two or three per cent. per
month for money TO keep out of bankruptcy.
In spite of all efforts, however, the supply of
money failed, and a great number Of our
roads have had to stop paying the interest on
their bonded debt, and let their floating debt
take care of itself for awhile. Just so far as
our roads have been built with actual money,
and with economy, just so far will they be-
come good property. The proportion of
their cost, which has been sunk in shaves on
bonds and shares, and in paying enormous
interest to carry a large foating debt, goes
Just so far in destroying the value of the en-
ierprse, as a dividend paving Investment
Now, many of, or rather all these roads in
which a large proportion Of the capital cost
is represented by discounts and shaves, have
been compelled to stop meeting their pecu-
mary engagements, and in consequence, there
is lack of confidence in all. The good suffer
with the bad, and all are compelled to depend
upon their own internal resources. From the
limited annual earnings, must the operating
expenses, the interest on the funded debt, and
other daily contingencies now be met, and rs
the effort now is to save the property, econo-
my becomes the moving and active principle
in railway management. The construction
account is, and must be stopped; every leak
age from the treasury must be cut off and
every dollar rigidly saved. Such Of our un-
fortunate roads as have vitality enough TO
pass through the next twelve months without
coming under the auctioneer's hammer, must
then stand in far better position than they
now do The practice of economy and care
fulncss will then have become more Of set
tied nature and habit, and from the compul-
sorry withdrawal of many Of the new enter
prises from the market, money will and must
be easier Such roads as then have showed
the power to pay their way legitmately with
their earnings, will then appreciate very rap.
idly in price.