Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1877-04-06
From tie Rutland Globe.
American Railways.


made on Vermont railroad management
would lead one to infer that Vermont was
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 aud some
wicked men by the name VI Smith who have
had control OF its management. We have
nothing to say in defence OF the Central
Vermont Railroad, its managers, or the gen.
ersl policy which has controlled this and
all other Vermont railroads. We think
there is vast room for improvement. and
that there should be n radical change of
policy, but, after all. Vermont is M worse
off than other States the Central Vermont
will compare iavhrably with many other
roads in, what may be called, good stand
ing; and the Smiths, il they are M better,
are certainly no worse than the general run
of railroad magnates. Indeed. the most
serious charges made against the Cen
trail Vermont Railroad and the Smiths.
If true, would place them III no
more uhfavorable light than proven
charges leave the Boston and Albany rail-
road company and Chester W. ChaLln Its
president-yet the most Influential news
paper which airs itself occasionally in in
vective against Vermont railroads and their
as prodigy in the way of railroads and
thought that Chester W. Chaplin WAS good
enough for reform Congressman two
years ago, and ysinly endeavured to have
him continue 10 illustrate his peculiar kind
of reform " in Congress ior two wears
more.
Vermont is not the only State blessed. or
cursed. with bankrupt railroad companies.
Strange a. it may seem there are other
railroads which have Jailed to pay dlvI-
dends on their stock. interest on their
hondS. or even rent on their luaSrd lines
The RdilIgdy Age reviews the condition ot
American railroads, aud shows that IN ls7b
thirty -oada, operating nesriy tOur thou
sand miles, and having capital, repre-
sented by stock and bonds, OF two hun
dred and seventeen million, eight hundred
and Iorty-eight thousand dollars, were
sold Under foreclosure proceedings iorty-
six roads operating seven thousand h'e
hundred and seventysix miles, and having
u capital of five hundred and thirty-eieht
millions of dollars. either passed into the
hands Of receivers or had proceedings Tor
forcclosing their mortgages commenced
and that ten other roads. operating two
thousand seven hundred and hitv-seven
miles, and having u capital OF one hundred
anu ultN-slA ulIllOHr SlA hhh ''A'N
one thousand dollars defaul:ed in the pay
ment OF interest. Thus 1t 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-fltl, of the whole number Oi miles OF
railroad in the United States. and having
capital. in stock and buud%, of nine hun
dred and twelve millions, five hundred and
nine thousand dollars. or about one-hith OF
ALI the capital invested in American rail-
WAYS.
This. be it remembered, is but the record
of A single wear. and not complete at that.
for the Ace says that although the status
ties are accurat.' ~ lar ~ they go, Vet, ~
all the railroad companies in the country
had not been heard from, the amounts
NAV have been undcr~tated. a. they GER
tainly have not been Oyerstated. Among the
roads which have been sold under tOreclos-
ure-each having capital OF twenty NIL
lions of dollars or more-were the Atlantic
and Pacific. Toledo and Wabash. Burllng-
ton. Cedar Rapids and Northern. etc. IL
we 20 back still earlier Ne fud that in
January, 1874. three hundred and eighty
six millions of dollars OF railroad bonds
were in default in the paym OF interest
and that At one time, during that year. one
hundred and twenty-five railroad cOmpR-
MES d,faulted IN paying the interest on
their bonds amounting 10 i've hundred and
ffty-.eyen millions of dollars. And these
defaults. roceiyersbips and foreclosures have
been going on, gaining volume year by
wear. until the startling and gloomy figures
for 1876 were reached. And the work did
not stop with the year 1876. Railroad cor
pors.ions were the first To leel the general
depression of business which commenced
before the panic OF 1873, and will only cease
to show its effects IN continued defaults.
r,ceiverships and foreclosures when conf
dence is restored, commerce revived and
general prosperity returns.