St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-02-15

&A sSNaEM AK rule, and conse-
NassS NV w. quently the return
XtGHEs&NyWI> to pc ger of the
WNNa3>/\ latter could notre-
| S-sult in an upheaval
M1y$ss;ies ;'$ + j f fS ss.: /;
80 in the East, but
capitalists are not disposed to invest it.
1.-The condition of the railroads is an
important factor in causing tightness
in the money market, and fancy times
will be worse. Railroad building has
been overdone in many parts of the
country, and particularly in the West
and Northwest. In Kansas, for exam
pie, there are so many lines that it will
take
TEN YEARS OF PROSPERITY
for the state to develop sufficiently to
| meet the needs of railways. Naturally
such condition of affairs causes cur
tailment of dividends, if not an actual
loss on the part of the investors, who
are for that reason. chary of making
new Investments When money is
plentiful and railroads are being built,
prosperity attends the construction of
new lines, or the rebuilding and i'm
provement of established. railroads.
Many men must be employed: ties,
timber and rails must be- purchased,
and those who are employed in the con-
struetion, having money in their pock-
cts, buy clothing, household goods, OF
spend their money on a hundred neceS-
,saries or Injuries. This tends to put
money into circulation and makes pros
iperouS times. But when railroads are
1 not prosperous they do not build, and
consequently all of these accessories to-
wards producing the desired result, are
iWanting. The market value of railroad
investments decreases proportionally,
and are directly affected. =
i''In New England alone the market
value of railroad investments is over
500, 900 less than it was eighteen
months ago. New England capitalists
iare of course affected by this deprecia-
:tion, but the brunt of: the burden. is
iberne by the: small stockholders. 1t
represents the thrifty savings of the.
father, mother or legatee. Investors of
5000 worth of stock and less feel this
depreciation keenly and give an inward
5groan when they see. the substantial
evidence OF their thrift and economy
decline in its market value. Railroads
cannot make money, and will not make
any when they are built or developed
in excess of the needs of the territory
through which they run. During the
last two years the Manitoba railway
EXPENDED OVER S22,000,000
in construction, exclusive of imported
rails and other important incidentals,
but if l were asked to name the amount
of money which we would put out dur
ing the next two years | should place it
under S5,G00,000. New capital was in
vested in our enterprises, and the
amount expended was not taken from
the company's funds. but was put In
circulation for the first time when paid
out for construction and building. l
know personally OF several gentlemen
who went east to negotiate loans for the
purpose of furtherng their projected
investments, but were obliged to return
empty handed. If money is borrowed
interest must be paid. and if the rail-
roads or corporations, OR even private
individuals, are not in a prosperous
financial condition they cannot afford to
pay it."
caused much more talk than the proba-
blity of an extra session. and this indi-
Gates how much interest is taken in the
condition of the railroads. The legis-
latures of the various states contribute
their quota towards producing a depres-
sion of railroad stock, and should work
more in harmony with the companies
interests, instead of legislating against
them at every opportunity.
"FareS should not be reduced be-
tween the Twin Cities. say rather let
the rates be cut down in the country.
Northwestern territory is new and I'M
developed. and for that very reason ev-
cry encouragement should be offered
to the farmers and new settlers.
Ii curtailment of rates be neceS-
sary let it be made in their ia
yOr. The result would not only
be beneficial to them, but would result
fayOrably to the residents and business
men of st. Paul and Minneapolis. Ad-
vantages to the country results in favor
of the cities as well. The Twin Cities
are the distributing points for the
country beyond. and if the residents of
the outlying territory are
ENABLED TO SAVE MONEY
it is reasonable to suppose that some
fraction of it will be spent in these two
cities. Real estate men, will be en-
ahled to make sales: wholesale men will
obtain their share of patronage. and
the small dealer will feel the effects of
the plentitude of money. Therefore, if
discrimination must be made. aud it
isfa discrimination, let it be made in
favor of the new and undeveloped
country instead of the settled and pros
porous cities.
s'But why partieularize and select the
Twin cities for reduction in rates? 1t
is, in my opinion, illegal and unconsti-
tutional to do so. If a reduction must
be made, let it be uniform and adopt
uniform rate all over the state. The
rates between ST. Paul and Minneapolis
are not as large as between Philadel-
phia and New York On the Pennsyl-
Yania railroad. and yet there is no COM
PLANT against that company for alleged
unjust charges. The maintenance of
the present rate is absolutely necessary
for continuance of the present service
and / cannot see how the companies
can afford to carry the people for any
less. If the railroads do make any
money off the interurban trade, it only
compensates for loss in the outlying
territory.
"Principally, however. the public is
responsible for the hue and cry against
unjust charges. They think that they
are right in assuming that the COM
panies are making avast sum OF money
from their interurban travel, and do
not stop for moment to investigate the
truth or falsity of this superstition. 1t
they would sit down and calculate, and
look into the matter by going over the
companies accounts, and take into con-
sideration the mileage, cost Of service,
fuel maintenance of road-bed. costly