The new North-west. [volume] (Deer Lodge, Mont.) 1869-1897, 1882-03-24
RAILROAD CONSTRUCTION.

~ mas Dcen evident lot year VI tWV shos
railroad building had developed into ma
MIA bubble OF speculation that must some
day burst. The plenitude of money, the |
heavy immigration, The immense undeveloped |
West, and the desire for outlets independent |
OF the close ssystems" coupled with the I'M |
paralleled prosperity of the country, the low
price Of iron and the opportunity offered OPP |
orators TO put money In their purses by Ju-
dicious manipulations of the money invested
by credulous stockholders, led to an uppre-
cedent amount of railroad construction, much
of 1t where there was not prospect of imme-
diate recompense. IL is only question of
time when this will end with crash. A
bad harvest would do 1t; combination of
the great operators might do 1t. That 1t was
nearly reached few days ago when TO keep
the credit of themselves and their companies
good such men as Gould and Vanderbilt had
TO show down their securities Is evident from
the facts, and IL Is also evident that the con-
dition had not been reached when these OPP
orators were ready for the grand stumble"
There are spiders and flies. The great OPP
orators represent the former and stockhold-
ers the latter. Each spider spins his own
web. 1t is only when the interests Of
enough of them TO control the issue are
identical that the grand gossamer will be
spread and the hapless taken in. During
the development of railroad projects last
year the question came up among the old
companies whether the market should be
pinched and these manifold enterprises
nipped In the bud or whether they should be
encouraged until we'll under way and then
be taken in by the old companies. The d.
versity of opinion on the method to pursue
was at the bottom of the railroad war last
year, those who desired TO kill the new roads
off cutting rates to depreciate the enterprises
In the stock market and those who favored
the policy of delay being obliged to retaliate
In self-protection. The boom was such
that construction co ntinued throughout the
year and the great iron and machine and To-
connective works of the country were given
orders occupying them to their full capacity
for year ahead. During the past winter a
disposition has developed to call halt in
railroad matters. II is fact known TO all
who have noticed the stock markets that
there has been heavy decline in market
values, and the Board is only now recover
ing tone from prostration that threatened
general wreckage. Among the worst breaks
of stocks has been that Of the Denver and
Rio Grande which In few months has de-
preciated TO about one.half Its former value.
1t is also stated that Wabash, In which tie
$250,000 gift raised for General Gran. was
invested as a margin, has deprecated until
the margin was entirely swept away and the
stock forfeited. Northern Pacific declined
with others but not so heavily and has some
what recovered The interview with Rus
sell Sage, published In this issue, stating
that the half dozen corporations with which
he Is identified have cancelled all contracts
and suspended work on all extensions, is but
an intmation of what is being done by near
ly all the strong companies--they are taking
In sail and will take I'm the weak enterprises.
The railroad construction bubble has been
blown TO its full capacity and there will bo
general halt until the country penetrated has
developed and energy stored for another adj
vance. So far as this condition effects Mon
tana we are not respondent. The Northern
Pacific Company has alleged Its arrangements
for capital are perfect and such that 40
squeeze of the American markets can affect
1t, while its securities, If the land grant is
undisturbed, are ample. BY the end of 1882,
If work Is theoretically prosecuted, there
will not be TO exceed $50 miles of gap re-
naming and the suspension of other enter
prises will be to Its advantage In obtaining
men and material this year. The Union Pa
cific Company Is financially stong enough to
prosecute construction of any line 1t desires
to establish and one of its purposes is to ex-
tend the Utah and Northern to Deer Lodge.
If these companies complete what they have
undertaken, Montana will not need distress
itself that the construction furore has spent
its force.