Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-11-10
RAILROAD REORGANIZATION,

New York Times.
The extraordinary fact that more than
81 200. coo. 900 of railroad property IN this
country Is now in the hands Of receivers
makes II plain that questions pertaining
to railroad reorganization must of neces-
sitv enter largely into general financial
considerations for some lime 10 come. \
peculEr phase of the situation IS aiiorued
nv recent limitations from Washington
that the government intends 10 take II
hand In the reorganization II the Union
Pacific railroad IN which It has credi-
TORS interest of about So2,OOO,Op
Five great uilrold systems which at
present enjoy the protection of receiver
shins have an aggregate mileage of ~
o77 with an aggregate capitalization Of
S4lO. 72G.7l1. aggregate assets amount.
ing 10 Sl.174.3l2, ST., aud Combined
funded indebtedness of Sol1O2S,05G: The
n1mrs Of dhe five systems are the mon
PaCi6c. Northern Pacific. Philadelphia
and Reading Erie, and Richmond Ter
nIinal-,the last named including In these
calculations the East Tennessee, Nir-
,-inia and Georgia and the Georgia Cen
frni lines. According 10 the latest Stuck
Exchaugo quotations. the aggregate mar
IN value Of the capital stocks Of all Of
these lines Is In the neighborhood o.
s5O.30O.OO0. or little more. than II
per cent OF tuf ihF NAiuN W - Iii
A large proportion Of these stocks WIN
prolpably be wiped ont entirely in the
costly process of reorganization
The absolute Necessity Of thorough
reorganization Of four Of the five railroad
nroperties mentioned Is beyond coniradle-
ZION. The Erie railway u not 90 be
riasaed with the other lines In this re-
.Dact for II has already undergone a
careful financial reorganization and Tor
thr INST few years It's management has
be4n conservative aud judic0us. There
h mod reason to believe. furihermofe,
fhat with the return Of favorable bul-
mess conditions the Erie VII soon be able
40 resume its place among solvent cor
nnrations. 1t + IN future Developments
IN No affairs OF the l9ion Pacific. the
Northern Pacific. the Reading. and the
Ricbin0nd Terminal systems that security
holders and railroad tinnneiens are chiefly
Interested. A healthful rcawikenlng of in
dnstrial enterprises Throughout the coun-
t-y will set the wheels " railroad re-
organization In motion very qnicdy, and
vvin thereby facilitate she rehabilitation Of
four Of the most important. and most
abused railroad systems on This continent.
n Is significant that Dissatisfaction with
~. t,,.eivers has been manifested IN
| each Of these four cases. IN the matter
1 az the Union Pacific tile Dissatisfaction
comes from the United states govern
I'm 10 lie receivers personally. but on
the technical ground, that ING ReffIF1i-
| ment being large and lninlsent credit
- sbo,,d have been consulted before
'!..s,,.-s we're appointed. The point
tbot the receirership Is. under. w cir
ana, stsnres Unconstitutional has been
rsiso5 by certain members Of congress-
MA Attorner-C;eneral Oiney lIts the
/ onestiou under consideration, me ~
si.rseca tbaf the government proposes
~ ~. an active interest IN Union Pacihc
g,i-s ,his winter. has already started
s si'n,. Of the speculative interests IN me
/ property. .,.r,,-a.,arf
r,.neesu,ent and repeated iinnnfial mis-
/ fsriunr- The Northern fn1nc ~ " ~
| ~ ~ hi h'er fniu7e .,,t M
- N M. o.s.ss|l. asa tie A'Nei'i'