Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1894-10-18
Epseialte Ms Rszlss.-.

New YORK, October 17.-Since his
recent return from Europe, President
George B. Roberts, OF the Pennsylvania
Railroad Company, one Of the most con-
sentative Of the representative men
who stand for and powerfully influence
the great railroad Interests OF the United
States, has been asked TO give the pub
tic his views on the economic outlook In
this country. BE has consented to give
me, for publication, an expression OF
opinion on the commercial, Industrial
and traffic situation. Few men speak
for such great interests and with
such opportunities for information.
He is In excellent health, and
takes q wholesome view Of those az
fairs in which every American has 3
vital interest. A 1yiag visit to New
York City, which curiously enough is
not the headquarters of the trunk line
he presides over, gave me the oppor-
tunity TO converse with him, 10 the
many years he has been at the head OF
the Pennsylvania railroad system,
which pays out one hundred millions
OF dollars 3 year, Mr.. Roberts has so
rarely been interviewed for publication
that what he says now seems entitled
TO special consideration on that score
as we'll as others.
Mr.. Roberts said: THE recent panic,
result, an Industrial depression, which
still continues, was largely the natural
OutgroWth Of speculation In all kinds OF
securities representing no real value.
A large mass of railroad securities and
Of industrials' equally worthless, had
been put upon the market and the fnan-
cial panic was the legitimate result OF
the discovery OF their wOrthlsssness; it
was first bankers panic, rather than
q commercial or industrial one. It's
first fruits were q paralysis OF our in
dustrleS, from which the manufacturers
Of the country are now slowly recover
ing. i do no believe that there will be q
speedy or radical rebound from that de-
preston, but I do look for q gradual and
GENERAL IMPROVEMENT
which will be evinced by an active de-
mand for paying investment on the part
Of capitalists. During the depression,
the money capital Of the country has
been almost valueless, inasmuch as IL
brought It's poSsessOrs practically 70 re-
turns; IL will now l think be brought
into active uses, and will stimulate en-
terprise In many directions, so that we
may lock for greater activity In All
branches OF trade and manufacture. so
far as my observation goes, there Is al
ready q general return throughout
the country to manufacturing activity;
the manufacturers OF iron are more
active now than for year past.
II is true that prices are almost down
10 cost, but there should be an improve
ment In them. The relations between
the prosperity Of our railroad system
and the prosperity Of manufacturers IN
general and iron manufacturers es-
pecially, are OF course very intimate.
'rhe railroads are enormous pnrcna-
sers. and any Limitation or dimlnution
Of their purchasing power Is inmedl-
ately and severely felt In many branch
eS Of trade.
,,Tbe material account OF the Penn
avlvania railroad is less to-day by tfty
per cent. than 10 was & year ago.
lnH panic o. To- NA=-Ao @AN-A '-N~-S
different causes. IL was natural re-
suit OF the Civil War which had given
us An inflated currency. The relief
from the strain which that war had en-
Rendered, and the stimulation due TO
such currency, led to an over-ouildlng
Of railroads, an r-production In all
directions, aud TO borrowing on hcti-
tious values, and period OF wild specu-
lation resulted. In many instances, 1
regret 10 say, there Is large
amount Of fictitious capital in Amer
ican railways. The older companies,
organized before the days OF speeula-
ton, we're built upon full money value
for the securities issued, but more re-
Gently many railroad enterprises have
been engineered by bankers or promo
ters, add stocked or bonded TWO or three
times the cost OF the property. In their
efforts TO earn some returns on these Sc
curitles, the managers OF such cOmpan.
les have actually impaired, X not
destroyed, investments made on sound
foundations in other companies. As a
consequence the thoughtful investor
has come TO
REGARD RAILWAY SECURITIES
with distrust To this cause are to be
attributed many Of the financial failures
in the large railway systems OF the coun-
try. This condition OF affairs is ex-
tremelv difficult TO remedy by law, but
II would seem that laws could be en-
acted which would prevent the issue OF
stock certificates and bonds not repre-
sentative OF actual value. In some
States there are such laws in existence,
but they are either not enforced as they
should be, or not sufficiently general in
their operation, and so fail In their
effect. AS practical measure, all such
securities as those alluded 70, should oe
cancelled in reorganization, and the cap
ital of the new company reduced TO the
actual value OF the property.
Nothing would probably 70 q greater
degree ensure such restoration or pub
lie confidence and general prosperity,
than 10 have policy established, under
which the more important railroads OF
the United States would receive such
compensation for their service as would
enable them to make proper aud reason
able returns on the large capital invest
ed In them.
UrIt seems, sometimes, as II the true
relations OF the railroad properties to
the public were not generally under
stood. They constitute the foundation
stone OF commercial prosperity, and any
tampering with them impairS. nay
threatens the destruction Of the whole
fabric. 10 country like the United
States, a continent OF great distances,
the lines Of transportation bear a most
significant relation TO the public pros
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