The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-26
DISASTROUS RAILROAD INVESTMENTS
STARTLING EXHIBIT OF MoRIDuND CORPORA
TIoSs THAT HAVE SWALLOWED NINE HUN
DIED MILLIONS OF CAPITAL.

STARTLING EXHIBIT OF MoRIBUND CORPORA
TIoSs THAT HAVE SWALLOWED NINE HUN
DEED MILLIONS OF CApIrAL.
From the Railway Age Feb 81
Tho public generally have yet to learn and appreciate
the intimate relation between tho railway interest aud
tho interests OF the country whole, and to
understand that as the railways prosper or suffer
tho people prosper or suffer also. SO vast IS tho
amount Of capital now invested In this form OF
property in the United States that II Is utterly
impossible that It should be jeopardized made
productive without causing panic and Throughout
the land. The crash OF 1873 was followed by defaults
on the part Of large number Of railroad companies In
the payment of interest on their Indebtedness evory
year. and almost every month"; since the rst break up
has added many companies the nsolvcnt list until
now the aggregate OF capital that has been rendered
productive TO its swept from their possess
sion altogether appalling its magnitude II i'm
possible to gvo with accuracy the amount OF money
involved in the United States In railways that within
the past four years haye deautcd IN their liabilities
have been placed in the hands OF receivers, havo
been sold out by foreclosure or are struggling under
unpaid obligations, awaiting reorganization that will
wipe out their ,rbis and enable them TO start anew
rho year 1875 was marked by the sale OF large
number OF roads and by the commencement OF pro-
cecdngs Tor the foreclosure OF many more; aud also
by few additions the list of doiuting companies
A complete and accurate statement Of the CON-
pancs involved, with Their mileage and tho amount
oi capital Investment which they represent, would
be OF great interest No such statement Is to be
had, but ia lieu thereof We have venturcd, IN or
der to give an approximately accurate idea OF tho
immense loss suffered by those VINO have built our
system OF railways, to attempt the compilation Of
table showing these facts IN regard to the railways
which, during tho year 1876 alone, have either
been sold under foreclosure, or, having previously
dciauitcd aud proving unable to recover, have been
marked Tor probable foreclosure, by the appointment
of receivers the action OF their bondhold-
crs; or, alter holding out SO long, have been
com PEELED JOIN the lists OF nsolvens, with the
prospect OF bankruptcy before them. The difficulty
and labor involved IN tho preparation OF such list
are great, and IN the figures that have given We
claim neither completeness nor exactness. The list OF
very nearly u, but the ngurcs IN some cases
had TO be estimated, and as the exact
amount 10 date OF principal and interest can
not be determined owing TO the lack OF Official rc-
turns. the general results have only been approxi-
mated In round numbers Tho aggregate, however, Is
sufficiently near correctness TO be instructive.
In the following tables we have aimed at giving the
mileage of com pctod and operated roads involved and
the amount OF capta-stocE bonds and debs--alected
and practically locked up by the inability OF the oom
panies to fulfil their obgations.-
1876.