Morning journal and courier., 1881-09-03
Saturday Morning, Sep. 3, 1881.
THE RAILROAD WAR.

The railroad war which has now been po-
 ing on for two months or more, has been a
 good thing for travellers and those who send
 freight over the roads, but those who own
 stock (perhaps bought at high prices) in the
 roads do not look upon the fight with much
 pleasure, for fear that it may bring them serious loss. These stockholders will be able
 to derive some comfort from the remarks of
 writer in the RotlroGd Gazette, who seems
 to take sensible view of the difficulty and
 the effect 1t will have on the value of their
 stocks
 There was, it will be remembered, a pro-
 longed railroad war in 1876. The Gazetts I writer points out that the situation at present
 resembles in some respects that of 1876, but
 the rates, taking everything, are probably
 somewhat lower now. The low rates are
 general on passengers and freight in both di-
 rectlons The freight war in 1876 broke out
 ln April and lasted nearly to the end of the
 year, and owing to the time contracts the
 low freight rates lasted until the middle of
 the next year. This year the low freight
 rates on east bound freight began about the
 middle of June, the low west bound rates be- l came general about the first of August. and | the low passenger rates about the second week of July. It will not, however, require SIX months to restore them as in 1876. There are but few time contracts on east bound freight, and only few Gin Boston) on
 west bound, and these are not for the lonp period for which contracts were made in i0'6. When the roads once etready to re store rates probably they can bring them up as nigh as water competition will permit (Whlch will depend chiefly on the extent of the gram movement at the time) within six I weeks or two months though perhaps the l tune contracts on west bound freight may prevent an advance in the rates on it SO l soon"
 It IS further pointed out, for the comfort or stockholders, that though the through rates are now lower than in 1876. exnenses l are also lower, and the profit is perhaps as large, or the loss as small, now as then. Ex penses have increased considerably within the past two years, but probably not as much as they fell from 1876 to 1879. Again, traffic IS vastly greater now than in 1s76-traffic of all kinds, through and local-and the profit | on local traffic is now probably much greater ] { than the profit on the whole traffic then. ( Further, and this is of immense importance ] n estimating the ability of the railroads to s endure the losses of long war, the present s contest follows two years of great prosperity, n which their profits have been much larger s han for long time before; for many, I ,reater than ever before Most of them c lave been put into thoroughly good condi- c ion, and have been equipped in anticipation U If heavier railroad traffic than that of the F ast year even. Floating debts have If 'een paid and credit strengthened. l 8 In spite of the war credit re- nains generally good, and it will require O nuch greater losses than those of 1876 even 8 0 affect the roads as they were then affected Dividends of some roads will have to be re- uced or passed, but they will still remain luch further from the edge of the abyss that , awned for some of them in the first half of BY. The railroad war of 1876, on the other and, followed two years of light earnings nd light profits, and industrial prostration p nd financial wreck. It was to many con- te anies only the last and greatest of series f disasters'' Iw This seems to be a fair statement of the !. lse. When the war will end cannot, of purse, be guessed. It may end in week, ii Id may not until the ''close of navigation" l W 'hen it does rates will undoubtedly be high ! L lough and the roads will do their best to ake up the losses of the summer.