The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-01-30
RAILWAYS RUINED BY ACCIDENTS.
$3,OOO,OOO n Year Paid I'm Settlement
OF Suits for Damages.
New York SUM-

One OF the most popular suburban rail-
roads carrying passengers out OF New York
during the summer season went into the
hands OF receiver a few days ago because
there were pending against IL suits to the
amount OF 81 100000 arising from an accident
on Labor Day-an accident in which a num-
Der OF people were killed. Not one OF these
suits have yet come to trial. but such is
the closeness with which railroad earnings
and expenses are computed that the net
earnings Tor many years TO come would be
hopelessly engulfed If only a part of the
suits came to trial, and if only fraction of
the damages claimed was recovered in court.
When one reads OF a terrible railroad &C
cident'' on some railroad line. an accident
entailing loss OF life and, perhaps, serious
injury 10 many, the circumstance is lost
sight of that, after the doctors and nurses
have begun their work OF skill or philan-
thropy. there come the lawyers whose eli
entS are TO be settled with either by cash
compromises or as the result of jury's
decision. and juries, ii is well known. are
hardly ever partial to railroad companies
when private individuals are suing for in
Juries sustained or for the loss OF immediate
relatives. 1t IS for this reason that a very
serious accident sometimes means the
wreckage OF the finances of a railroad COM
pany. few minutes neglect reckless
ness. or imprudence may cost, in subsequent
financial damage, years of labor.
Among railroad men the case of the To-
ledo, Peoria q Western is a familiar one.
In august; 1881 there was an accident at
Chatsworth, H., on the line, in which 100
persons were killed, and the litigation re-
sulting therefrom has kept the company
In the courts ever since. The Monon road,
running from Chicago to Louisville, is an
other sufferer in its finances from an acct
dent along the line, and the Ashtabula ac-
cdent on the Lake Shore railroad some
years ago involved that railroad in many
thousand dollars of loss. Railroads have no
reserve fund to meet the losses sustained
through damage suits from accidents. A
contrary opinion prevails, especially among
litigants and Jurors, who seem to act on the
general proposition that railroad corpora
tons keep on hand a large sum for such
contingencies as an occasional accident cost
ing anywhere from $4,000 to 100000
The amount of money paid in settlement
of damage suits by American railroads cam
not be computed with any positiveness, be-
cause ii varies considerably from year to
year. while the condition of the railroads
transporting passengers has much to do
with II. When roads are in good condition
accidents involving loss of life or serious
bodily injury are rare; when roads are in
poor condition such accidents are frequent.
The large systems Of the country, such as
waukee & st. Paul, the Illinois Central and
the Southern Pacific. spend on an average
In the settlement OF damage suits about
$4,000 each, and the smaller railway COM
panies bring up probably the total amount
paid to about 100000 in ALL
Although the American railroads carry
collectively in a year 600,G0000O passengers.
the number of fatal accidents averages but
about 300, and Of injuries to passengers
about 3,000 or one killed for every 1000 600
carried and one injured for every 200 600.
One of the amendments adopted to the pres
ent State constitution in 1894 (section IS OF
article u, did away with the statutory power
of the Legislature to limit a verdict for
damages for injuries resulting in death"
to 5000.