New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-03-16
WHY MR. SAGE IS Confident.
THE CHECK TO RAILROAD BUILDING ONLY
TEMPORARY.

THE CHECK TO RAILROAD BUILDING ONLY
TEMPORARY.
When asked for his opinion Of the present condi-
ton of railroad business aud the prospects of the
companies last night Russell Sage SAID to TRIB-
UNE reporter:
THE present inability of promoters of railroad
enterprises to go on being checked by their failure
10 negotiat. bonds and stocks to secure the money
TO prosecute the work of construction, leaves the
older and already finished roads in better con-
diton than would be possible if the mania for build
ing new roads we're to continue
Then you consider the construction of new
roads practically q, a standstil for the present ~
Few railroads will be built this year There is
n general suspension Of this work all the
country | am connected with dozen of these
corporations, and In each instance have
wound I'D the work for the present, after
settling with the different contractors.
| do not think they will go on again for a
wear or two; perhaps it will be even longer. am
ready to 20 on when am satisfi d that it will pay
but am unaierably opposed to building mile OF
railroad when the business will not fully Justify it,
There is an unerring law of progress, that fully
one-half of all the railroad enterprises
are swept away and another set of pTOpretoTs comes
in TO take their places The history OF threefourths
of the roads built in the United States shows that
for one-half or less, of tbeir investment. neces
sary result of the present suspension IN the con-
structIon of new roads will be that investors will
take the stocks of the finished and already paying
roads mt better prices than have recently pre-
vailed"
"To what causes do you attribute the recent
downward tendency of all railroad stocksp
cit is well known that we had pretty full head
of speculative steam previous to the assassination
of President Garfield last July. That caused the
first check From the I'd of July on.
down to the beginning of the present year
there has been steady decline. with the usual
fluctuations These fluctuations have been owing,
in part to oyer-speculation and over-construction
of new railroads; the general decline
was accelerated by the short crops
and damaging treshetS beginning early In DC
tOber running through that month and November.
When we reached the beginning of the new year,
financial troubles broke out in France and spread
all over Europe The rates OF interest rose from 22
to 3 and 10 per cent winch was very t fx
countries az France, England Austria, Ger
many and Holland, the money centres
of the world. OF course in that panic heavy losses
followed, and enormous damage was done. These
troubles in Europe contributed to our depression
by sending back a good many of our stocks and
bonds and throwing them on our market
mand The bears took advantage of
tins state of affairs to magnify and misropresent
the real condition of the country"
How do YOU regard the improved tone OF the
market within the last few daysT asked the re-
porter. ....
"The country at large il very rich, and investors
are well aDle to take securities at the lower
rates which are now ruling regard the CONDITION
Of things assuming very he .lthy outlonk iOr
the tutnIe Prices are such now 20 justify the
most conservative capitalist IN making invest,
ments Money is plenty aud the continual
paving OH OF the National debt throws an almost
unprecedented amount of additional money INTO inc
market to be invested. The recent change of lone
on the street will do vast amount Of good To le0-
pie who. having originated wholesome enter
change Of tone will be moro beneficial
TO the business interests than anything
that could have happened. Otherwise
mdny legitimate and desirable enterprises must
have suspended, owing TO the fear that We were
drifting tOward-nOt panIo--but general dulness
and depression. ] think that Mr. GOuld ana MIR.
V HnderbIt, III coming forward aud planting them
selves down solid for the right, have rcstorcda feel
ing OF confidence which very much
needed and winch will produce very beneficial re-
suits. " ltI such crops IA W. may reasonably eX-
pect. and with the unexampled prosperity OF the
past ten years going steadily on, ! shall be sur
prsed If by september and October general
change Of such character Is not shown
as 10 prove how the wicked bears have nisled the
public ~ irving W make 1t believe that rum was
close III hand.
"Another view ODE taken Of this depression and
one when makes II clear that IL has been with
out profit, In that II has checked extravaganza and
the growing importation of ghpriced Injuries
from abroad. ] ho importation or these goods has
| materially fallen OIL much TO the gratIlca-
ton OF thoughtful people who watch tho
balance of trade. which should continue In our
in the conviction that wo have turned the corner IN