The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-01-11
During the Twelve Months Receivers
Were Appointed for Twenty
Six Roads.
Prospects for q Further Decrease
In Insolvency Are Now
Encouraging.
Less Ratio Cutting Than in Any II
Period In the History OF West
ern Roads.

In it's issue of Jan. / the Railway Age
and Northwestern Railroader has IN In
teresting review of the last year SO Jar as
foreclosure aales and tho appointment OF
receivers for railroads are concerned. IL
says: The year 1891 was q period OF COM
paratively small railway construction and.
on the whole, of rather unsatisfactory hnan-
DIAL results, and it's history was not re-
lieved by that decrease in the sales Of rail
way properties under foreclosure which u
was hoped would Indicate that the wrecks
of previous years had been nearly cleared
away and that solvcEcy was coming TO DO
the rule rather than the execution with
railways in the United States. We ind
from our record that during 1891
there were sold under foreclosure
twenty-one railway properties, with an ag-
eregate mileage Of 3.223 miles and q capi-
talization of over $lS6, 900, 600. While this
lsless in the number OF roads and slightly
less in the mileage than the totals OF the
previous year, it shows an increase OF some
8 I, 500, 600 over the capitalization repre-
scented by the sales of 1890, and in both
mileage and capitalization indicates 2 very
great increase over tho records OF 1853 ana
1883. These bankrupt lines are widely DIS
tributed through the country, although 1t ID
somewhat surprising 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 Mis-
souri (2), Kansas, Nebraska. Utah, Vlr-
ginia, Florida, Louisiana and Texas.
The article continues to show that in the
last sixteen years the total number of fore
closure sales of railroads was 49S, with a
mileage of SIS, 74S and a total capitalization
of S3,O33. 3s04, 600. u comments on these
figures thus: 1t appears from these totals
that almost 800 companies. representing
So, 74S miles and So, OBJ, 000, 1000 of capital
over So per cent of the total capitalization
OF the railways of the United States at the
commencement of lS91-have gone through
the process of sale and reorganization IN
the past sixteen years alone. VI the dlsas.
ters of the previous forty years or more OF
railway history We have no records. 1t IS
proper to remember that during
the period under consideration q number
of the roads have been sold two or more
times, SO that there is some duplication OF
mileage and capitalization; although the
fact that the same property has made re-
peated financial failures within a few years
indicates still more foroibly the unprotit-
ableneEs of railway Investments.
Proceeding in its review the article shows
that during the twelve months receivers
we're appointed by the courts for twenty-s SIX
diffeFsnt companies, representing 2,l59
miles Of lines and $S4,479,OOO OF capital,
and summing the whole thing uplt remarks:
Tt is encouraging to observe that none OF
the great and important railway companies
of tue country have become lnsolyent dur
ing the yeaf, the roads on the list being
mostly new enterprises which were
undertaken without sufficient capital
to carry them to completion. The Indian