The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-01-04
Very Little Encouragement For
Railway Building Apparent,
The Past Year Has Not Boon Fav-
orable For Construction.
The Immense Number of Foreclos-
ure Sales Recorded.
The appointment OF Receivers Another
Feature OF the Railway situation
The Immense Sums OF Money
Invested In Companies.

CHICAGO, ILL.,, Jan, 3.-The Rdd,ody Age,
in its issuo Of tomorrow, will say: "Whilo
the past year was not favorable one for
the railways generally in respect TO onrE-
ings or maintenance Of rates. IL makes u
much less discouraging showing than
many OF its predecessors in the number OF
roads sold under foreclosure aud also In
the mileage and capital involved in such
sales. This fact, however, docs not prove
that the roads are now prospering, because
foreclosure sales are the harvesting Of seed
sown longbciorc, sometimes several yeais." 4"
A iase giving tho n..ncs of the i,ies
sold, their length and the amounts OF their
funded debt and capital stocks
is given, and the article con-
tinueg Although roads, with almost
1900 miles aud nearly S15, 100000 OF
bonds and stock have been closed out for
the creditors during tho year these
figures are much less than those OF any
previous year since our record was begun,
with the exceptions Of the years 1882,
1883 and 1884. Compared with the next
three years, the improvement In remark
ably great, indicating that the roads
whose insolvency occurred In late years
have mostly gone through the process Of
reorganization. 1t is gratifying, also, 10
observe that only two Of the nineteen on
the list are among the real important
railways in the country, these two being
the Florida Railway d Navigation, with 53J
miles Of road and over S25, 1000, 900 OF sc-
curilics, and the Houston aud Texas Cen.
trail with 622 miles and representing nearly
$4,000, 600 Most Of the other roads arc
quite small aud scattered through various
portions OF the country and their failures
resulted chiefly from lack OF business"
The essential features oi another tabular
showing are summarized as follows:
The fact that during the past thirteen
years, i23 reilway companies, with 1870
miles OF lincs-morc than ~ per cont. uf
the entire mileage oi the country OF total
railway, aud representing In securities
almost S2,0li, 600, over 30 per cent. Of
the present railway capital-havc hecn
seized by the courts ior ,be benefit ~ thcir
creditors and sold VI auction, doos not in
hAAAAAN AAiNA ihANNANs AM NiANN hNMNNNN MIN "
profitable form Of Investment. IL il true
that in several cases the same road has
been sold twice, or even three times, but
this indicates still more strongly the pre-
carious nature OF the business, when ~.
pgalod investments of capital in road iail
TO make II scll-sustainng.
The number OF railway rccciycrships
G instituted during wear gives better In.
N.s IL Al
railway system than do tho foreclosure
sales, and IN this respect the evidence oi
1883 is not encouraging. We iinl that
during the year twenty-five companies,
with 3'27O miles of lines and nearly $751;
100000 oi securities, have become insol-
vent aud passed from the control Of their
owners Into that Of the courts. Compared
With either 1851 OF ls6s, lhc-c ngurcs
Indicate very large incrcase Ia
RESPECT 10 number oi roads, mileage
aud capital But on the other hand
the totals nre very much smaller than Tor
the years 1885 and 1884. the latter being
memorable from the fact that the thirty.
seven roads for which receivers were ap-
pointed represented over .0JO miles Of
lines and near S'l5,OO0,OO. Iho most
important failures Of the year are thOso oi
the Missouri, kausis 4 Tcxa-. l,Gil miles
and sgj0ODOO1 Minneapolis & 81 Louis.
3li miles and 'llp,2OOOJG Dayton, Port
Wayne &i'hicigo, 2jD Biiics pnd nomi.
nally about $40. 10000. Cincinnati. Wash-
ingt0n x Baltimore, With Isl miles aud
siO.2l0.OD0 Of securities the lnHi.namcl
company conicssing iis failure on thc hg,
day Of the year.
AZ the present time the outlook ior 1880
la respect 10 railway insolvency IN not
altogether cheerful, Tho heavy i0-sos oi
ISIS have seriously Affected the financial
standing of tho many companies, aud un.
hess rate VAN arc prevented and lcgl8lniIUn
and public sentiment become less unjust
toward railway interests, there h reason to
fear that the iIst Of fycoi,crshipl lor 1889
will DO very much larger Than Tor the year
that lass Just closed.