Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-04-27
Been Looking Around
Baron Granger, the German
Railway Magnate.
THE RESULT OF HIS OBSERVATIONS

great Paris and London financier, arrived in
Chicago yesterday morning accompanied by
his son Frederick and NJ Sliddall, of Paris,
and Charles Schiff, John c. Gault and r.
x. Ryan, trio of Cincinnati railroad mag
mates. The party put up at the Palmer
house, ana after big breakfast started out
to see the town. They drove on the boule-
ward and took in Armour's pork-packing
establish nent, finally winding up with Ill
on the marquis at Pullman.
Baron Erlanger is one of the worlds most
prominent tinanciers, and is the head of the
great banking institution of Erlanger Bros,
with houses in Paris, London and Frankfort,
he controlling the first two and mis- younger
brother the latter. He has never visited this
country before. He arrived in New York
April 5, and has been on the go ever since
He came to America for the purpose of look
ing into bis railroad interests in this coun-
try, which comprise controlling stock in the
Cincinnati Southern, Cincinnati, New Or
leans and Texas Pacific, and associate rail-
roads. The baron furnished nearly all the
capital for these lines while some of his
friends on the other side of the water in
vested their money in western roads.
Railway Interests Overdone.
He talked freely to a reporter who called
upon him. "The railroad interests in Amer
ica," said lie, ARE simply enormous, and no
one in Europe can form any idea of them I'M
til he has been over here and seen for himself
But they are overdone. There are, in my
opinion, entirely too many railroads branch
ing out into unpoPulous territory, and | can
not see why people should continue to enter
into new abroad enterprises of this charac-
ter. There are numerous roads that seem to
have no place for destination and do not
see how ca Ditalsts can expect to get any re-
turn for their investments in such enter
prises. Again, there are too many compel
ing roads. For instance, half dozen or so
separate and distinct roads running from
Chicago to st. Paul Is entirely too many, and
half the number could do all the business
without difficulty"
The Management Underdone.
What about the management of the
roadss" was asked
well, of the management cannot speak
very enthu siastically. l am at complete
loss to understand why the operating ex-
penses of the roads in this country should
eat up 10 per cent of the revenue when on
the other side of the water they only amount
to about so per cent, and yet you get much
higher freight rates here than we do over
there. THAI is something | cannot under
stand" repeated the baron musingly.
Are there any roads of which you think
the management is especially badr
Yes l tn NIX the management of the Chi
cago, Milwaukee & St. Paul has been partic-
ularly bad, and that seems to be the impress
sion here. The opinions of that road which
were held by financiers in Europe were
highly hattering before they began to pass
dividends, but now that opinion has changed.
Atchison, too, has been very poorly man.
aged That magnificent system only a short
time ago was one of the most reliable roads
In the country for investors, but it is now
only waiting for good opportunity to go
into the hands of receiver. Its stock is sell
ing away down below what it has ever sold
at before ano no one seems to understand the
reason"
And Why l. This Thus?
"Other roa Is are in almost as bad a shape
and why is il! Business i'll America has been
good during the last year or two. If it had
been bad there might be some excuse for
these things; but why the railroad interests of
this country should be so near to bankruptcy
in the face of remunerative rates and increas-
ing business fail to understand; so do other
foreign capitalists"
is there any likelihood of foreign support
being withdraw WI from these roads,
There is, unless the management of them
changes hand4 If Americans don't want to
make money out of their own railroads for
the stockholders they cannot expect foreign
capital TO represent that stock when the for
eigners themselves are not on the inside of
the deal"
An Opinion of Jay Gould.
what do you think of Jay Gould as a
fnancier."
Il think Mr. Gould is one of the best-in-
formed men in the country on matters per-
| tanning to railroad interests. OF course, I'M
| derstand, however, that one can admire his
ability without approving of all he does
Wherever railroad enterprise has been
| started there IS some good done. But Mr..
Gould has lost a great deal of money for
other people. He is hard worker, but he
knows nobody but Mr.. Gould, and his efforts
to make money for that individual are, to
say the least, INSCRIPTIONS He makes money
and makes it rapidly, and / admire his abil-
ties in this dire ction, but he seems to be able
to stoop to aim ost anything to do this He is
manipulation IF the most dangerous kind I"
"You would not care to identify your in
terests with Nh. Gould, would your
"No, indeed. / should never rest n mo-
ment if | should do So have confidence in
Mr.. Gould's abilities but none in his man
hood. The Gould system is fine one, but
the roads are not paying they should
Why this is | cannot say, of course but it
looks as if the stocks were SO outrageously
manipulated that people were afraid to
touch them except for mere speculative pur-
poses"
The Interstate Commerce law.
what do you think of the interstate
commerce lawI
Il think it would be an excellent thing for
the railroads if they would abide by it; but,
strange to say, hey do not seem to want to
do this. The I'm ted States government seems
DESTROYS of protecting the railroad interests
| of the country, but the managers of the
roads themselves do not seem to want them
| protected They seem to prefer to be let
alone that they may cut and slash rates as
they see fit, and do all kinds of irregular
things they could get along much better and
| more profitably by not doing. i believe the
| law is an excellent one and it should be more
rigidly enforced
A Great Future for the South.
"What do you think is the best part of the
| country now for permanent railroad invest
| mentsF
"The south, think 1t has great future
before it. The people are only just begin
ming to rally from the effects of the war.
| The resources Of the south are enormous and
tend to present IN excellent field for rail
road building, which has been overdone il