The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-01-08
RAILROAD FAILURES IN 1891.
Record Of Foreclosures and Receiver
ships Shows an Increase Over 1890.

Record Of Foreclosures and Receiver
ships Shows an Increase Over 1890.
The Rotlway Age and northeastern Roit-
roadcr of January contains an article on
the foreclosure sales and receiverships of
railroads in the year 1891, in which it says:
We find from our records that during 1891
there were sold under foreclosure twenty-on
railway properties, with an aggregate mileage
OF 3, s23 miles and capitalization of over $780,.
O00,0J0. While this Is less in the number OF
roads and slig htly less in the mileage than the
totals of the previous year it shows an increase
of some s3,500,000 over the capitalization repre-
sented by the sales of $780, and in both mileage
and capitalization indicates very great in
crease over the records of 1889 and 1888.
These bankrupt lines are widely distributed
through the country, although it is somewhat
surprising to find that of the twenty one roads
sold four have their headquarters in New York,
four in Ohio and three in Pennsylvania, the
others hailing from Missouri (two), Kansas,
Nebraska, Utah, Virginia, Florida, Louisiana
ana Texas. 1t is customary to look upon the
Western states as the regions in which unneces-
sary and Improbable railways have chiefly
been built but the records of this and previous
years show that the number of bankrupt roads
in the Eastern states has not by any means been
small.
Almost 500 companies, representing 53,74S
miles and s., 1888, 100000 of capital-over 81 per
cent. of the total mileage and over 81 per cent.
OF the total capitalization of the railways of the
United states at the commencement of lS91-
organization in the past sixteen years alone. OF
the disasters OF the previous forty or more years
of railway history we have no records. 1t is
proper to remember that during the period
under consideration a number of the roads
have been sold two or more times, so that there
is some duplication of mileage and capitaliza-
ton; although the fact that the same property
has made repeated financial failures within
few years indicates still more forcibly the I'M
profitabeness OF railway Investments
As foreclosure sales are the final reminders of
financial wrecks which have occurred years
before, so the list of railways placed in the
hands OF receivers is the record of insolvencies
which have occurred during the past year. In
this respect the history of 1891 is more en-
couraging than that of the three preceding
years. We find that during the twelve months
receivers were appointed by the courts for
twenty-six different companies, repres enting
2,159 miles of lines and $si, 1900 OF capital.
1t is encouraging to observe that none OF the
great and important railway companies of the
country have become insolvent during the year,
the roads on the list being mostly new enter
prises which were undertaken without sufhcie
capital to carry them to completion.
Ii seems that the capitalization involved in
the receiverships of 1851 was less than in any
one OF the last eight years with the exception of
1856, and the mileage involved was less than in
any OF these years excepting 1856 and 1887 The
prospects for a further decrease in railway in
solvencies are now encouraging.