The daily gazette., 1881-05-24
WILMINGTON. DEL TUESDAY, NAY a. 1884,
From the Baltimore Sun.
The ssB0omo I'm Railroad Construc.
ton.

t1On.
The New York Bulletin has just
published its yearly statement of the
number of miles of railroad construct
ed annually, together with list of
other railroads projected. Its present
synopsis is SO startling as to deserve
moments notice, and to suggest the
inquiry as to whether we are not pro-
crossing in this respect too fast. We
know how consolidation is uniting
weak roads into one vast monopoly or
other, and that under the speculative
rise in formerly worthless railroad
stocks large fortunes have been
made and are being made to-day.
Many of the already existing Western
and Southern roads have not paid one
cent of dividend for years, and yet are
quoted in Wall street at high figure.
Not one in twenty of those who uphold
stocks or depress them are aware Of
the. condition Of these roads, or if they
are aware, do not care aboutit. Money
is SO plentiful, speculation is 30 wide~
spread, maps, prospectuses and de-
scriptive letter-press are SO cheap, and
the country has apparently 80 long..a
reach of prosperity before it, that ap-
peals to investors are readily responded
to by them without adequate inquiry.
Such was precisely the condition of af-
fairs in 1878, and we might well be led
by what happened then to ask if the
present activity in railroad construc-
tion is sound. Six thousand miles Of
railroad were actually constructed in
the United States in 1880-a number
only exceeded in the year 1871. In ad.
ition to these there are fourteen thou.
sand other miles Of railroad projected.
In 1870 the number of miles of railroad
| built was four thousand seven hun.
died in 1878 two thousand six hum
dred, and 30 on down to 1878, wheI
the number begins to increase again
Probably some two hundred and fifty
millions of dollars were pat into rail
roads just before the crash came il
| 1878. According to the careful esti-
mate of the Bulletin, more than two
hundred millions of dollars have alst
been expended on railroad construction
within the past eighteen months. Thi
large sum represents much of the capi
tai of the country accumulated by thu
economies practiced after the CONNER
oial and financial troubles of 1873 and
during our recent revival of prosperity
If that prosperity receives no checl
the investments may ultimately be saf'
enough in majority Of cases. But il
is heavy risk to run. So many O
these enterprises look TO distant fu
ture that, even with smooth sailing
they may not be productive for year
to come. The Investments are held a
home principally. We have becom
rich enough to build roads with ou
own money, and if losses should ensu
we shall have to bear them ourselve
and not share them as formerly wit
foreign capitalists. Nevertheless, al
d though indivi iuals may suffer, th
country at large will be benefited b
the building of these roads, and es
pecially the South and the West 70
there lie the great bulk of the newly
constructed and more recently project
ed roads. That the present rapid ex
tension of old roads and building O
new ones may be, as the Bulletin be
lieves, on a sounder basis than up t
1878 is quite probable !; but not for tn
reason, that it xives-that they al
built by American capital; for if th
roads fail to pay interest on thei
: stocks and bonds, and the mortgage
on them are foreclosed, the losse
would not be distributed, as formerl,
, between American and foreign hole
ers-and therefore more easy 10
. borne-but would fall entirely upo
| ourselves,