Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1873-10-29
THE RAILROADS AND THE PANIC.

wen Tor tno military history OF Inc great
American conflict"
THE RAILROADS AND THE PANIC.
The New York Bulletin and Times come
to the front with some reflections upon the
condition of the railroad system, and some
advice to railroad men and the public.
They speak knowingly and with confidence
as far as they 60, but they are evidently eau
tious, not to comprehend too much of the
subject in the scope of their remarks. The
confusion and uncertainty into which the
business of the country has been precipita-
ted by long course of unrestrained mis-
management and bad legislation, is rather
more than the mind can master or devise
means to correct. Anybody, however, can
properly enough and with entire safety and
without hazard or foolhardiness, advise
strict obedience to the ten commandments
in these ''panicky" times; exhort men not
to steal, and enlarge upon the necessity of
loving one another. This is well enough.
Indeed, it is all that can be done
to remedy present evils. These evils are
the inevitable results Of bad leg
islation, and perverse encouragement on the
part of Congress to unreasonable and op-
pressive enterprises. They are therefore
inherent msl2dies in all our recent govern
mental policy. Similar deplorable conse-
quences may be prevented in future by
wise reformation; by which we mean an
universal uprsising of the Frustrated public
virtue of America, and a stern resolution
on the part Of The people s'to retrace their
steps and regain the road which alone leads
to peace, liberty and safety" for it must be
confessed that there have been moments of |
error. But present misfortunes must large |
ly work out their own remedy. The ques-
ton is, can we confidently hope that they |
will do this? We believe that the cure will |
ultimately come. 1t will be fastened by |
mutual honesty, mutual indulgence and |
strict economy. There seems fortunately |
enough, to be general disposition through
out the country to resort to these wholesome
s.imulants in order TO revive business activ-
ity. There is a higher law, by strict /
obedience to which the world can always
repair the selfinficted injuries which It has
sustained through imprudence or ignorance.
That law is honesty and charitable coop
Grafton. -
In solving the problem chow to restore
and maintain confidence in railroad securi-
ties" the Bulletin urges upon companies
the living necessity of the strictest punctu-
atty in settling all past obligations, and
meeting all maturing ones. 1t mentions
the fact that this policy has been pursued
so far, and speaks of il in the highest terms,
urging that it be made the fixed rule. 1t is
the railway industry that has experienced
the first, if not the severest shock: Through
this, however, quite all Of the force of the
crash is being communicated to the other
Industries Of the country; and it must be
apparent that it will affect all other indus
tries, .snd impinge at last with
great severity upon the laborers. This
result Is already seen and keenly
felt. There is no other class to which the
abOring masses can shift the weight. The
of the United States have been
at reported cost of $780,
100000. Good authorities place the actual
amount of capital paid IN at 81, 400, OO0, 900. s
But they are expected to pay profits on the
whole amount. or this total cost about
3, 200, 100000 is in bonded Indebtedness,
he interest on which the railroads will have :
o pay. Putting the average rate of inter-
'st at seven per cent, this tax on the roads
caches So, 600 GOO; but in reality it may E
each 81, 000,0O0,OO0. OF the 1854 railway S
ines enumerated in Mr.. Poor's manual
or the years 1872 and 1873, only 1O4 are \
ct down as paying dividends, and the ;
dividends which are reported are not on
he average at nearly so high 3 rate r
s the interest on the bonds. The c
anne authority reports the gross earn.
ngs of the railroads at S454, 769, 900, which
} about fifteen per cent. on their nominal
ost. The net earnings are about one
bird of this amount, or Sl45, 100000. 6
these figures disclose the actual condition G
f our railroad system, and leave no room 4
Or wonder that it has fallen into so help tt
.ss prostratioD. But to show how It has v
lvolved the prostration of other industries Z:
] its own calamity, it is only necessary fl
} note the extent to which it had develop m
d those industries. Observe how closely 5
4 prosperity is blended with railway thrift.
. is estimated by Mr.. Poor that in 1851 the
onnage carried by the railways was at the
ate of only 464 pounds to the head of pop
lation. Ten years later, when the length
the roads had trebled, the ratio of tonnage
0 population was 1912 pounds per head;
nd in 1871, the mileage having then doub- "a
ID, these roads carried 5000 pounds per
esd. The same progress is shown still n