The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1882-11-25
RAILROAD ITEMS.

THE old method Of building n railroad was for
the subscribers ~ take either bonds or stocks
and pay for them full price-say 90 to l0O-and
then the outstanding liabilities represented
predy nearly the capital Invested, and the bonds
and stocks became valuable according TO the
capacity of the road to earn interest iyidends
But that method is so old now that it savors OF
the middle ages, and lith9 has been done on
this basis since the war Then came the plan
by which the projectors issued and sold enough
bonds per mile 10 build the road, and issued u
like amount of stock. distributing the latter
among themselves This was the general plan
in vogue prior TO the panic of 1873 but so heav-
lily were the roads loaded down with interest
charges on their bonds, sold at prices which made
them pay about per cent. per snuum that
few companies were able 10 survive
when the hard times came, Our readers may
recall those ghastly lists of railroads in de
fault which Il led columns in the newspapers
Before 1873 the construction company" had
been little used, and the famous Credit Mobllsr
of the Union Pacific, which was the first of those
companies TO become prominent in the United
States, subsequently iell into bad odor, But
the construction company has of late years been
revived, aud very much used AS side corpora.
ton, first for the building of the road, and seq
oadly for the distribution of the stock and bonds
for the benefit of It's subscribers. and whether
or not 1t did the first part well, 1t has succeeded
admirably in the second. The distribution of
stock and income bonds tsometimes in very large
amounts) TO the subscribers for first mortgage
bonds in blocks has been the popular method
of late years, and as between this and the 1870
Z! plan of keeping all the stock for the
projectors. we cannot see why tho latter
is not the beat. One of the natural
consequences of the issue Of these large
blocks of bonds and stocks 10 subscribers Is
| sometimes seen in the decline of the bonds u
very low prices before the railroads are COM
pleted. The subscribers, wishing TO realize on
something, and not finding a ready market for
the stock, apt TO sell their bonds Vt any price
they may bring
Those who have devoted some attention to the
subject have noticed that every new move In the
common metal for structural and other purposes,
is toward the adoption of steel In place of iron.
There are but few places where welding is re-
CURED as almost all articles or parts of articles
are now cast or cut TO shape and size, and Sc.
cured by bolts. This enables the adoption Of
| lighter appliances, and still gives increased
strength and greater durability. The largest
item in this direction was tho use of steel rails In
| place of iron This year the iron rail exports
has fallen oil TO 81 $50 tons and per cent of the
whole: while tho steel rail exports increased
| from $50 csc tons to sos OH, The United States
has until now been the chief importer of British
| iron rails but within the last few months we
nave ceased taking them almost entirely. All
countries other than the United States have
taken but Is, li6 tons during the first eight
mouths of this year. which is but As per cent
\ OF their total takings.
! The handsome counters which are now being
put in place in the Texas II Pacific road are at
/ tracing considerable attention, The tasty nte-
riOr together with the handsome signs placed
on the front and sides OF the building causes
the passers.by to stop and admire what Is actu-
ally the finest railway office in the United States.
II is reported here that the New York, Texas
| 4 Mexican Central railway has just bought up all
the spare lands IN Pecos, III Paso and Tom
Green counties, amounting In the aggregate to
over 100000 acres. The land is said to be
bought for speculation, and steps viii nj once be
taken by the purchasers to settle II With Cml.
grants. Two and half million acres Of Il are
said to be IN Tom Green county,
AT the annual meeting Of the stockholders Of
the Baltimore & Ohio road, President Garrett re-.
ported the gross revenue OF the year ut slS3S,
SO the net income showing gain OF $50, 600
semi-annull dividends of per cent have been
declared, and the company has surplus fund
OF slS, 007 Gis,