The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1885-09-01
D'PEW'S OPINIONS.
He THINKS THE WEST SHORE RAIL.
WAY DID 1T.
That Is, Caused all the Business Depres-
sion-A Dead Loss of SIO0, O0O, 0O0--
Looking for Boom-ImportaDt
hallway Decision.

New YoRK, Sept President DePew
of the New York Central, talks as follows Of
the railway situation:
The condition OF the Wet Shore and the
conflict between the trunk lines have been
the great causes OF the Industrial depression
for the past two years Railroad So
curtties repre,ent such an enormous
volume Of investment funds that when
they are seriously affected credit IN gener-
ally impaired, confidence destroyed, and
business damaged. IL the Present efforts TO
secure Harmonious action among railroads
and fam and reasonable returns from the in
vestmente are successful we shall immedi-
ately entsr upon new era Of prosperity.
The hundreds Of millions OF idle money now
in banks OF trust companies will flow out
into Investment and development all over
the country. New enterprises will be pro-
jsctod, manufacturers will become prosper
Gus, and laborers find abundant employ
mspt at good wages.
The railroad commissioners in the several
states, with the strongest laws regulating
transportation companies and tho certainty
OF some action by congress with reference
TO interstate commerce, and the nat
ural competitions of lakes rivers,
petitive outlets to rival mar
kets, make monopoly in transportation i'm
posssible. Take the West Shore railroad,
which was in every respect we'll built rail-
road. 1t demonstrates that not even
tine shrewdest OF investors un-
derstand the railroad problem.
II was argued by the people who
put their moaey In il that it could divide
the business Of the New York Central and
make q handsome profit In their enthus-
iasm they failed to ascertain that the Ne W
laat ral oRrIo oh
than any other road in the world, that
its local freights we're lower than on
any other road In the United States, and
that whatever complaints there may have
been in the past, and there were undoubtedly
q great many complaints, at the time the
West Shore road wass projected the patrons
of the Central were entirety satisfied.
They did not discover another very im-
portant factor in building e road which
creates no new business but simply divides
the business Of q road already built. and
that b shat 10 costs on an average 70 cents
out OF every dollar to operate a
railroad II You build another road simply
to divide that business ID costs lao cents on
every dollar received TO do the business
Ths Old road, which has the branches and
customers win retain the business, or
most Of il, while the new enc will
be losing g for every 81 II gets, hence
soe west o0ore was running behind III Q
mere cost OF operating expenses about
slS0,00o a month, and il had accumulated
in sixteen months S4,000,0O0 of receivers
oertiHcstes The construction of the road
created apparently 500, oaAooo OF new
property. In realty, by the money sunk
in the enterprise itself, and the
losses inflicted on the Central and other
roads 800 900 900 were wiped out Nc
country could stand loss Of that kind with
out its being felt In every department Of
business, and causing most serfeus distur-
Dances in values and in the industries Of the
country