The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-03-27
AMERICAN RAILWAYS,

The persistent attacks which have been
made on Vermont railroad management
would lead one to infer that Vermont Yves
the one foul blot on the page which records
the history of railroads in the United
States, and that the whole blot was made
by the Central Vermont railroad and some
wicked men by the name Of Smith who
have had control of its management. We
have nothing to say in defense of the Cen
trail Vermont railroad, its managers, or the
general policy which has controlled this
and all other Vermont railroads. We
think there is vast room for improvement,
and that there should be a radical change
Of policy, but, after all, Vermont is no
worse off than other states the Central
Vermont will compare tavorably with many
other roads in, what may called, good
standing; and the Smiths, il they are no
better, are certainly no worse than
the general run of railroad mpgnates. In
deed, the most serious chs yes de against
tho Central Vermont railroad md the
Smiths, if true, would pace them n no
more unfavorable light thu proven
charges leave the Boston and Albany rail
road company and Chester w. Chaplin its
president-yet the most influential news
paper which airs itself occasionally in in
vectve against Vermont railroads and their
managers regards the Boston and Albany
as prodigy in the way of railroads and
thought that Chester w. Chaplin was good
enough for "reform" congressman two
years ago, and valnly endeavored to have
him continue to illustrate his peculiar kind
of "reform" in congress for two years
more But we are wandering from our
purpose.
Vermont is not the only state blessed, or
cursed, with bankrupt railroad companies.
Strange as it may seem there are other
railroads which have failed to pay divi-
dends on their stock, interest on their
bonds, or even rent on their leased lines.
The Rail,oay Age reviews the condition of
American railroads, and shows that in 1876
thirty roads, operating nearly four thou
sand miles, and having capital, repre-
sented by stock and bonds, of two hun
dred and seventeen millions, eight hundred
and forty-elght thousand dollars, were
sold under foreclosure proceedings; forty
six roads, operating seven thousand five
hundred and seventy-six miles, and having
capital of FIVE hundred and thirty-eight
millions of dollars, either passed into the
hands of receivers or had proceedings for
foreclosing their mortgages commenced !;
and that ten other roads, opera
ting two thousand seven hundred and
fifty-seven miles, and having cap
ital of one hundred and fifty six millions six
hundred and sixty-one thousand dollars, de-
faulted in the payment of interest. Thus
it appears that during the year bankruptcy,
or the first step toward bankruptcy, was
reached by eighty-six railroad companies,
operating over fourteen thousand miles of
railroad, or one-fifth Of the whole number
of miles of railroad in the United States,
anu having capitol, in stock and bonds,
of nine hundred and twelve millions, Eve
hundred and nine thousand dollars, or
about one-Hfth of all the capital invested in
American railways.
This, be 1t remembered, Is but the record
of single year, and not complete at that,
for the Age says that although the stats
tics are accurate as far as they 60, yet, as
all the railroad companies in the country
had not been heard from, the amounts may
have been understated, as they certainly
have not been overstated. Among the
roads which have been sold under FORE
closure-each having a capital of twenty
millions of dollars or more-were the At
lantic and Pacific, Toledo and Wabash,
Burlington, Cedar Rapids and Northern,
etc. If we go back still earlier we find
that in January, 1874, three hundred and
eighty-six millions of dollars of railroad
bonds we're in default in the p ayment of in
terest and that at one time, during that
year, one hundred and twenty-five railroad
companies defaulted in paying the interest
on their bonds amounting to five hundred
and ffty-seven millions of dollars. And
these defaults, receiverships and foreclos.
ures have been going on, gair ig volume
year by year, until the startling a. gloomy
figures for 1876 were reached. And the
work did not stop with LIE year 1875.
Railroad corporations were the LIST 10 feel
the general depression of business which
commenced before the panic of 1873, and
will only cease to show its effects in con.
tinued defaults, receiverships and foreclos.
ures when confidence Ia restored, commerce
revived and general prosperity returns.