Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1884-08-12

In the period of three years since ls5O
there have been opened In the United
States z, ,406 miles of railroad, aud 609l
miles were opened the past year up to
the close of the fiscal years of the sew
eral companies. The increase of share
capital and Indebtedness of all the COM
panies for the three years ending De-
cember 81, 1883, was g., ,093, AS, ,0b4. the
coat of the new mileage rs represented
by share capital and debt being about
10000 per mile. The increase In the
three wears OF the funded debts of all
the companies was 1924. l65. 40; Of their
floating debts, $i69. .SSo, ,406; of the two,
81 ,O9l, ,O45,Si6. IL Is not probable that
the cost Of the mileage constructed In
the three years equalled the increase of
funded and floating debts by at least
the sum of $500, 100000. The cost OF
the mileage constructed certainly did
not exceed $4,000 TO the mile. The
whole increase of the share capital,
1855. .g3S7, us, and a portion of the funded
debt. aas in excess of cost of construc-
ton. Stocks and bonds to the amount
of $3.50, ,la2, 600 were listed nc the New
York Stock Exchange in 1858 The
amount of stocks and bonds listed was
equivalent TO about $4,000 per mile OF
new road bailt during the year. con.
siderable amount, however. OF the Sc.
curities listed was en- account OF old
works.
IL is in this immense increase of no
titious capital that Is 10 be found the
cause OF the general distruss wnien pre-
walls, and the enormous decline IN tAe
prioe of railroad securities From 1879
| 20 the near Close of 1883 most sin9u-
lar delusion rested upon the public as 10
| their value, and this delusion was taken
advantages of on q vast scale by able and
uuscrupulous aavensurers. whatever
WAS manufactured aud pnt afioat was
/ seized with avidity by an eager and IN
| informed public. The delus.on was IN
creased and prolonged by payments on
| = very large scale of interest and dtvi-
/ denSs from capital. In this deiusion
the most Ioudmouthe dand unscrupuious
4 promoters usually had the greatest soc
cess. The delusion culminsted aoou'
| the time OF tbe opening of the Nortnerr
Pacific. in connection with which vis
| ionary schemes OF immense masnltuoe
had been pot upon she markes. Their
worthlessness. and the rapid decline OF
their securities, exerted . powerfui In
4 aence over she public mind. which
coatinues unchecked 20 the time o'
wrItinc this. The distrust extends
Alike 10 good and bad, 50 that prices a
the present time have as little references
to TIE values as they had ~ the begin
ming of 1855. 1he distrust viii prooAbl,
c,ufinue until time shAli show what ~
rurifies are well based. One canse ol
the GREAT decline in the shares Of lines
vh,cn were dividend -payipe, u the com
nef,tioa resulting from the CONSTRUCTION
~ rival iines- The result OF this compe
titiou il particularly shown In she 80
orrat Pacific roads. the Union and Csn
srsI. both Of which, for many years
have regularly ps,d divideods. Dos eo.i
Of which have nov been competi :.
foreeo them. A fss years ago tnsr'
was. in publio estimation. no more IN
y,tin9 feld for railroad enterprises thai
the State of Colofado. A VAST systes
a railroads.. covering the whole stat.
vas eonssrre1ed with very great rapaa