Delaware state journal. [volume] (Wilmington, Del.) 1870-1883, 1873-09-13
Delaware State journal.
WILMINGTON, DEL.'
Saturday, Sept. 10, 1873.


AaAAAA 50 |
tits fact pretty generally known that
q great many workmen employed In the
ear shops Of this city have been thrown
out of employment during the past sum
mer, and that considerable number
more were discharged from one OF the
establishments within the present week
On inquiry, we find that this condition of
affairs 10 confined TO no particular shop,
but that the business is dull in them all.
Such a falling of in one of the leading |
Industries of our city is, of course, a |
matter of concern with all our people, |
and an inquiry into It's causes cannot |
fail to be interesting and useful. The |
dizziness, we are assured by well-informed
gentlemen, is by no means confined to |
Wilmington, but, on the contrary, in |
many places there is much less work in
progress than there still is here. There
is great falling oil in the demand for
new rolling stock for railroads throughout
the country. Even such concerns as the
Pennsylvania Railroad Company, which
had contemplated making large additions
to their rolling stock, are postponing any
action in the matter while comparatively
few new roads are being built.
There are several reasons for this, one
of the most important of which is that a
great many railroads have been built in
advance of the needs of the country
through which they run. This is fact
which cannot be gainsayed, despite the
alleged insunlclency of means for trans
portation between the East and West.
The policy of county and township aid TO
railroads in the West has greatly stimu-
lated the building of railroads, from the
simple fact that the mere building Of
roads was profitable business to men to
whom it was not q matter of importance
whether they paid or not. The township
or county subscription was always suili-
cient to grade the road and often to
furnish the tics also, then the sale of
bonds paid for the rails and
the contractor always made his profit.
Then came the business Of stocking
the road, and this, too, was generally done
with the proceeds of the sales of bonds,
and then-well il is scarcely necessary TO
tell any one VINO has had experience in
building new railroad what next
happened. In great many in
stances, probably in majority,
the road failed TO earn enough
TO pay its running expenses and the in
terest on its bonds, and the bond holders
are now running the roads to save what
they can out Of their investments, or are
the unhappy possessors Of large amount
OF handsomely autographed papsr which
has no immediate connection or interest
or with revenue in any form.
OF course the result Of this is to make
capital, always shy. particularly carefal
about investing in such securities, as by a
pleasing fiction they are called, and not
only is It impossible Cor roads with feeble
resources and doubtful, or even improved
prospects TO sell their bonds, but estab-
lished and successful enterprises find
it exceedingly difficult to borrow
money TO complete necessary extensions
which would add Immediately TO their
revenue aud give them almost invaluable
security against threatened diversion Of
trade in the future. And IL is not to be
wondered al that railroad bonds are not
rushed after by investors, for there are
to-day in thl- country, between lorly-four
and fifty millions of dollars worth Of
such bonds on which the interest is not
being paid, and nearly forty millions OF
these are those Of roads built during the
recent period Of sauguine and excited
railway extension. Many Of these Toad-
are Of course, in iiine, cc'tain to become
paying concerns. hu, they are not at
present in a condition TO nuy, and even 81
they were willing Gas many OF then
are) to do so, they have nothing will
which to nay for their cars but bonds. il
our manufacturers cared to trade carr
for these they need NOT lacl: for orders.
But there are n great many solvent
roads in tie country doing a good bust
ness. Why do these not want cars
There are two exc, llent reasons; l.. A
great many such roajs build their 0wr
cars. =. The loug-continued stringcncy
in the money market has forced the very
strongest concerns into tie practice oI
The most rigid economy in their eNpendt
lures, AMI none OF them are buying any