The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1893-01-09
RAILWAY INVESTMENTS.
Twenty Eight Roads We're Sold
Under Foreclosure During
Last Year.
A Record OF Bankruptcy Owing
Its Magnitude to Richmond
Terminal.
h Iusolvent Roads Are Widely Dis.
tributed ~Throughout shs Country
but None In Montana.

winnie eh0 year 1872 WAS q period OF com
paratively small railway construction, IL
was not marked by a corresponding de.
Grease in the number Of insolvent RAILWAYS
which were brought to the auction block OF
which defaultod in their obligations and
were placed in the hands of receivers, says
the Railway Age. On the contrary, the re-
suits of overbuilding and low rate making
in previous years continue to be exhibited
in the annual record of railway bankrupt
cies. ard the process of wipinR out capital
invested in the construction of railways,
especially in regions where they were most
needed for the development OF tho country.
goes on. with no end in sight. Is il to coa-
tinue until every railway company in the
United States has been sold out and
the original owners of our splendid
system Of steam roads have shared
in a common rain. "a the reward Of their
enterprise and courage? We find from our
records that during 1899 there were sold
un der foreclosure twenty-eiaht railways,
having an aggregate mileage of 1922 miles
and an apparent capitalization-bonds and
%stooks-of 800. s9s, 900. While the number
OF roads is larger than in the previous year
it is some encouragement to find that the
mileage and capitalization show q large de-
crease compared with the three preceding
years; from which we might be led to hope
that foreclosure sales would eventually
cease. were it not for the fearful record Of
new insolvenoies which is shown in our
table of receiverships. The number Of roads
sold during the year was twenty eight with
an aggregate mileage of 1929; funded debt,
S555, 1864, COO; total bonds and stocks. $95, $685.
O0U.
1t will be seen that these bankrupt lines
are widely distributed through the country,
their headquarters being in fifteen different
states. OF the twenty-eight roads four be-
long to Texas, three to Oregon, three to
Pennsylvania. Florida, South Carolina.
Tennessee and Georgia, while Rhode Island,
Maryland. West Virginia. Illinois, Iowa
n Washington each nave one. No very
great and important line is in this year's
mortality table, the largest in point of
mileage being the Florida Southern. with
3o7 miles and a capitalization of about
So, 500. 900, while the largest in respect to Ii
abilities is the uncompleted Oregon Pacific,
whose 166 miles represent securities asgre-
eating nearly $780, 900, 900. The narrow
gauge roads continue to swell the number
of failures, there being five of that class in
this years sales. The summary of fore
closure sales for seventeen years, from 1876
to 1882 inclusive, is as follows: Number of
roads. 526; mileage. $500; capital stock
and bonded debt, So. 122. 202. 600.
1t is difficult to believe that in seventeen
companies representing over 50 per
cent of total present mileage and 81 per
cent of the total capitalization of the rail-
ways OF the United States nave gone
khrcy1ph $hn rPNnooo ~ ro1n A~5
tion. and yet that ia what these figures in
dictate.
1t ia proper to note that during the period
covered several roads haye been sold two or
more times. SO that there 10 some duplica-
ton of mileage u capitalization; but the
of repeated failures indicates still
moro forcibly the unproftableness OF rail-
years tho number of foreclosure sales has
averaged thirty.one annually. the largest
number in n year being ~sixty-fve and
the smallest fifteen.
Much more alarming than the record of
foreclosure is that of railway insolvencies
the past year, for it would seem that in
1892 a new era OF bankruptcy more disas-
trous than that recorded for several years
had been i~naugurated. We find
that in the last twelve months no less than
companies. having 10. sos miles OF
and representing the prodigious capt.
talization of nearly 1888. 600, 600. have de-
faulted and been placed in the hands of 70
celvers.
This appalling record of bankruptcy owes
its magnitude largely to the collapse OF the
great Richmond Terminal bubble, carrying
it companies representing $500 miles
of road and over 1856, 600, GOO of nominal
capitalization. If that gigantic failure had
not occurred the years total of receiver
ships would not have been 30 large in re-
spect to mileage or capital as it now is. al
1t would still be far worse than the
nine years in which We have kept complete
records the following comparative figures
were obtained: