New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-04
RAILWAY RECEIVERSHIPS.
TOO MANY LINES THROUGHOUT THE
COUNTRY ARE IN TROUBLE
REVIEW OF THE YEAR BY "THE RAILWAY
AGEr-PERCENTAGE OF PROPERTY
tn
HANDLED BY THE CoUR'

Chicago, Jan. g." The Railway Age in its issue
of tomorrow, will say: "Whc tho last year was
not favorable for the railways generally in
TO earnings or maintenance Of rates. Il makes
much less discouragng showing than many Of its
predecessors In the number of roads sold under fore
closure and also In the mileage and capital involved
in such sales. This fact however, does not prove
that the roads are prosperng because foreclosure
sales are the harvesting Of seed sown long before,
sometimes several years"
A table giving the names of the lines sold their
length, and the amounts Of their funded debt and
capital stocks is given and the article continues ::
Although nineteen roads, with almost 600 miles
Of lines and nearly s65 100000 of bonds and stock
have thus been closed out for the creditors during
the year. these figures are much less than those Of
any previous year since record was begun, with
the exception Of the years 1882, 1888 and 1854
Compared with the next three years, the improve
ment is remarkably great indicating that the roads
whose insolvency occurred in late years have mostly
gone through the process Of reorganization. II IS
gratifying, also, to observe that only two Of the
nineteen companies in the list among the really
important railways in the country, these two being
the Florida Railway and Navi igaton, With 533 miles
of road and S21 100000 Of securities and the
Houston and Texas Central with 500 miles and repre-
senting nearly S256OO0OO. Most of the other roads
are small and scattered through various portions Of
the country and their failures resulted chiefly from
lack of business"
The essential features Of another tabular show
ing are summarized as follows: "The fact
that in the last thirteen years 423 railway
companies, with 1870 miles of lines, mero
than 20 per of the entire mileage of the country
to-day, representing in securities almost $2545oOOOoo
over 30 per cent Of the present railway capital
have been seized by courts for the benefit of their
creditors and sold auction does not indicate that
railways in this country profitable form Of
investment. II is true that In several cases the same
road has been sold twice even three times, but
this indies qtes still strongly the precarous nature
of the business when repeated investments of capital
in road fail TO make it sclfsstaining The number
Of railway receverships constituted during year gives
a better indication of the present condition Of the
railway system than do the foreclosure sales, and in
this res pect the evidence of 1888 is not encouraging
We find that during the year twenty-five companies,
with 327O miles of lines and nearly s1s7 100000 of
securities become insolvent and passed from tho
control of their owners into that of the courts
Compared with either 1887 or 1856 these figures
Indicate large increase in respect TO number Of
roads mileage and capital. But on the other hand
the totals are very much smaller than for the years
1885 and 1854, the latter being memor-
able from the fact that the thirty seven
roads for which receivers were appointed
represented 1000 miles of lire and nearly
year are those Of the Missouri, Kansas and Texas,
l,611 miles. and S0300O0O0; Minneapolis and ST.
Louis Bod miles, and $119, 600; Dayton, Fort
Wayne and Chicago, $50 miles. and nominally about
$1O.5OO,OOo, and Cincinnati Washington and Bait
more, with 2s1 miles and ~ ,24OQOo oi secuues @
the last-named company conleSSng Its failure al the
At the present time the outlook for 1889, In
respect to railway insolvency, Is not altogether cheer
ful The heavy losses of 1887 have seriously affected
the financial standing Of many companies and unless
ss s14sss, 4se PscD%s s ' 10 aS a Se M Il
ships for 1889 will be much larger than for the year
that has lust clOSed.D