New-York tribune., 1874-04-11
BATTERED STOCKS.
L. @. n.

SPEECH OF AN ILLINOIS LEGISLATOR ON RAILROAD
DEBT INFIATIoN-ovER ONE THOUSAND MILLION
DOLLARS IN wATERED STOCKS ISSUED IN THE
UNITED sTATES-THE ANNUAL TRIBUTE ON THESE
STOCKS OVER EIGHTY-oNE MILLION DOLLARS.
In a recent speech before the Illinois House
OF Representatives. WIN. NJ Springer, a prominent
young Democratic member, sad that one OF the most
fruitful OF complaint against the mammoth rail
road corporations OF the country is the pernicious
practice of watering The balancesheets Of these
corporations he said do not always present a true
statement the actual cost Of the roads and equip
ment The actual cost OF given road ought to be rep
resented by the amount of its capital stock bonds
floating debt and upon these three items IL correctly
stated and honestly procured the people who paronSe
the roads, he sald perfectly willing that
profit should be realized MT Springer then in
detail the results OF examination into the affairs Of
the Illinois railroads and the great trunk lines which he
had made for the purpose Of ascertanng the OF
vatered stock issued. His summary of the investga
ton he gave follows
The total length Of all the roads in the United States
on Jan /, 1873, was 67ll2 miles, according TO Poors
Manual The total reported of all the and
their equipment, at that time was t369I.37s057. The
average cost per mile little $550OO. This at
least 600 per mile more than the actual cost Forty
Thousand per mile is liberal estimate for the cost
States At this rate the total actual cost would be
S26S4l6000 Subtract this amount from the reported
have the startling fact that railroad OF the
country issued thousand million OF watered
stocks and bonds, and demanding remunera-
tiOn upon the same, which at cent would amount
10 sSl 100000 annually thousand millions OF
principal-eghty millions of annual tribute
THIS is demand Of the watered-stOck lords OF the
land Shall it Tbat is the great question to be
decided by the American people. IL the railroad COM
panies would renqusn their demands for remuneration
upon fictitious values and manage sthelr roads
with economy, we would have no further complaints
about unreasonable rates or unjust determinations.
Railroad tariffs that would pay reasonable running e1.
peuses and per cent upon actual cost Of road and
equipment would be cheeriuy paid by all the people.
Therefore present upon the railroads IL war
upon watered stock. bogus bonds, and extrayagant
management. The must not be mistaken FOR OPP
position to railroads generally. We are ready 10
cede all that k claimed in reference To the thousand aud
one benefits railroads have been To the country. We
need more roads than have and more VIII De but.
All new enterprseswi receive the support aud encour
agement Of the people They do not oppose the build
ing OF new roads, the honest management OF existing
lines.
The reported cost Of the 6Osl miles OF road In Illinois,
Mr. Springer said 0sss6,7ss e. although the actual
cost value is but ts24So OOo leaving s959567s "a In
watered stocks and diluted bonds THIS nDIion Of The
railroad debt amounts 10 $4,000 per mile, and the
Interest aud dividends the whole amount AZ eight