Los Angeles daily herald., 1888-03-03
$4,000 MILES OF RAILROAD.
of the work and thu
NlOney RCUuired.

Analysis of the Work and the
Money Required.
The railways laid out $4,000 miles
of new road for 1887, and as near as
the best laid plans of men can 60 ii
was completed. If not done inside
of January and January it was still a
matter of unfinished business left
over, and when the work layed out
is closed up it will be found that it
was round Is 900 miles OF new lines
for which the builders set out at the
beginning of 1887. AS this is be
coming complete, and the COMPETE
ton created by it appears, the neces.
ity for adjusting rates ard business
relations, and the care of the bonds,
and some interstate questions are
presented, the managers have set
down to digest the new responsibility
they have created. To do this is
likely to occupy the next six months
at least, and the question comes up,
what is to be the outcome?
In bonds and pledges and bonuses,
this Is, 900 miles Of new road repre-
sents a round sum of $3.50, ,000, 900,
which has been placed in new rela-
tions to the business world. A large
part Of this has been taken out OF the
control of Wall street, and leaves that
most bare of the material for specula-
ton and respeculation. The greater
part of this has been absorbed, and
cannot 60 back to Wall street again
except in dividends and products and
in the sale of new bonds to European
investors. But the expenditure Of
SAC, 1000, 900 in new roads is but a
small part of the work, and only a
part of the expense. The "ballasting
up" and rounding out" of the skele-
ton of the creation is an equally i'm
portant work. There must be loco
motives and rolling stock and repair
shops, and the straightining out Of
curves and reducing of grades, and
building of switches and sidings, and
depots and store houses, to an extent
almost equaling the first expenditure
of labor and money.
When this is done, and every car
shop and machine shop in the coun-
try has been taxed to the utmost,
and the new employees at work, and
the new freight arrangements made,
then comes the other question of a
set battle with each other for bus
mess. In this is the governing phase
of all new railway building. Ii by
the construction of a feeder or the
extension Of q parallel the war of
rates created distroys the profits upon
the old line, then the ''proft and
loss" is a serious consideration. In
the year begun the principal lines
are too much occupied with freight
adjustments to be able to give much
attention to new surveys. The an.
nouncement of 80 per cent. cut in
freight rates to the Northwest, and oi
a readjustment of lower rates to the
Southwest, with the disturbing effects
of Canadian Pacific operations under
the Interstate law, and the direct aid
given by the $500" route suggests
that but little new work will be
planned north of the Ohio this year
In the absence of excitement ir
railway building in the North and
West, there is, however, probability
of greater progress in the South and
railway magnates have had time to
somewhat recover, get roads out oi
receivers hands and prepare fol
filling the demand of the new indus
tries in the South for business. The
example set bv Kansas, Nebraska and
other Northern States of encouraging
roads and new industries is to be
taken up with an increased energy al
the South. There are in the South.
ern States undeveloped material re.
sources known to be of permanent
value and importance, and what is
lacking in new rail laying at the
North may be largely made up at the
South.