The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-03-02
RAILROAD sEUMPs REVIEWED.

Ano Demoranxing Enects or EiuctuattOn4
In Railroad Stocks and Bonds.
Ole OF The MOST iisiduously danger
eis features of the private railroad sys-
tenn, among the several vicious features
to be considered, is the general fuctua-
ton in values caused by the frequent
and extraordinary ''slumps" in railroad
securities.
This. not merely If. money centers
where losses quite often readjust
themselves rapidly. but within ever
widening circles Qike those rings in a
lake where a stone has been thrown}
in which the power of reaction is neces-
sarily much less, and in some cases al.
most nil
Take a comprehensive look 1T the
latest statistics. The Atchison, To-
peka & Santa Fe has 2.O7O miles of its
own and operates by lease 6,527 miles
more. This makes it the most extens-
i've of our railways. Southern Pacific
Tin whose last whirl the little black rat
OF Wall street. our late unlamented Mr..
Gould, made six millions) and the
Chicago, Burlington & Quincy ranking
next in extent and financial rankness.
The interstate commerce commission
statisticiap, reporting for the yeaf
ended Julie 80, 1890, estimates the
Atchison assets Tor liabilities) at
STA, POS, 3S2. In 1892. another estimate
raised the figures to 1928, $50, G0e. To-
day, counting lines leased since the
1880 calculation, it is fair to say that
this road stands for securities equal t6
$40, 900. 900. That is, equal on paper,
just as American citizens are equal, ac-
cording to paper called the constitu-
ton. The reality makes an ugly con-
trast.
Now, since Mr.. Cleveiand's election
land the Wall street News, by the way,
one of the most veracious capitalistic
organs in the world, says Mr.. Cleve-
land has made million in Wall
street, these Atchison securities have
declined from S434 to 9A-or 25 points,
in the jargon of the street.
Rather pointed sermon on the bene-
fits of democracy, some republicans
might argue, but just the same tumble
would and has, and will occur, under
any rule except that of a party which
nationalises the railroads and runs
them on rails and reason instead Of
mere spunk and Speculation.
Reducing tho Wall street expression
| of valdes to terms of dollars, what do
we have? Simply this: A shrinkage
in market value of s5S, 900, 900.
State it another way, go that its
magnitude may be thoroughly appre-
| hebded. Nearly three-fourths of the
value of this investment has been ami
hilated within one year. 1t may come
again you say. Yes, no doubt it will,
but what guarantee has any investor
that it will stay long at any figure?
The common fact is, that whenever
such tremendous depressions occur
small holders of such insecurities be-
come scared, ratified" is the street
phrase, and they sell out in hurry a
stock that has gone back on them.
How often it happens, moreover, that
these stocks are depressed artifcially.
Then, the numerous small holdings are
gobbled up at sacrifcial figures. All
| at once the stock booms again. and the
old bunco game is repeated of unload
| ing it in small lots to a new bevy of
| lambs, who rush in where lions fear to
tread. Then again the stock tumbles.
| rumors of receivership for the road
are spread around, the lambs hasten
to sell, but are to be f1eeced again by
| the same old shears.
The New York & New England rail-
| road is shining example of making
sac1ey, and has recently passed into
! one of its periodic receiverships But
| as we are considering the Atchison, as
| the chief thief among present receivers
of unearned values and disturbers OF
other values, let us confine our atten-
ton for the present to this stupendous
swindler and only touch the others in
| cidentally.
In 1s91-9a, $50, 4Ss, 1873, were the gross
! earnings of the Atchison; s25, 80, O33,
the operating expenses. During 1898,
the gross earnings dropped over 81, OO0,-
900 below the operating expenses just
quoted Thus, apart from the usual
Wall street manipulation, or possibly,
affording basis for it, can be seen
| reason for the market fall of that stock.
Yet this road in 1880 paid dividend Of
| 81 per cent, and in 1881 declared one
| of 6 per cent cash, which performances
caused the Wall street quotation to
reach at one time 1914 per cent
Consider, now, the Atchison system
geographically. Chicago, its chief
| terminus, taps by it and it's tributary
| lines, the fruit belt of the lower Pacific
slope, the mines of Colorado and Next
co, the farms of Kansas, the cattle
| CRAVINGS of Texas and the cotton fields
| of Texas and Arkansas. Twelve of the
largest and most productive states of
| the union send by it their products to
| Chicago; states that have climatic adj
vantages over the great northwest. and
which are probably of more commercial
| Importance.
These being the plain facts for the
plain people to study, can there be any
other than one of two verdicts found
| in regard to private railroad enter
| prise, as exemplified in Atchison?
Either gross Encouragement or gross
chicanery-or perhaps, a deadly combi-
nation of both?
Almost the same story can be told of
decline in values for the Baltimore &
Ohio 81 per cent; Chicago & North
western. 1917 per cent; Chicago. Bur-
lington & Quincy, % per cent; Missou-
ri Pacific, 354 per cent, and even New
York Central IL per cent In fine, 202
out of 211 of American stocks have
shown similar shrinkage in the last
year in Wall street.
How soon must the wrecks of these
| roads halt for the lack of means? The
only salvation is for the stronger ones
to absorb the smaller. Therefore is it