The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-03-03
BALTIMORE And OHIO FA11.s.

| Inc Baltlm0re ana OnlO TallrOa0
which received its charter in 1927, fol-
years the most famous railroad in
America, the pioneer in nearly all the
Improvements in railroad building and
| operation, has gone in to the hands of
| two receivers. The system includes
2,065 miles of railways, having under
lease Twenty-Five different roads.
One thing is evident by the failure
of this old and stable comapny, That
one thing is that the east is suffering
from hard times almost as much as
| the west, and suffering in a way, too,
which contracts the earnings of the
railroads and forces them into insol-
vency.
The Baltimore and Ohio railroad ran
through a thoroughly developed and
old portion of the country, for the rail
road itself had, by being the pioneer
road to west, developed the country
near it. Its leased lines touched those
parts Of the east which had been de-
velOped by roads other than the Balti-
more and Ohio. And yet it failed, not
from any theftS or misdirection of its
funds for its books are straight; and
not from any concerted bear movement
or conspiracy to ruin its stock, for hol-
dings in the Baltimore and Ohio have
long been considered gilt-edged.
When the president of the company
tried to get a loan in New York last
week to meet interest and other in
debtedneSS about TO become due, he
met with disappointment The money
was not in New York to be loaned on
surprise if it had been some western
road which had suffered from wild
cat building" The Baltimore and
Ohio lies entirely east Of the Missis-
sippe river and its failure 10 secure a
loan would indicate that capital is
through, for the time being, with all
railroad investment, either east or
west.
And yet when the government a few
days ago asked a loan it was met with
the extraordinary proffer Of $500, O00,-
600 in gold.
Money to be loaned is in the country |
there is no doubt, but it is equally true
as demonstrated in this case, that |
money has faith in nothing but the sta
bility of the government
AT this point it may be said that
Major Mckinley is undoubtedly right |
when he holds that money will come
out only when the whole nation. Door
and rich alike, borrower and lender, is
rendered an opportunity to indulge in
common prosperity.
Primarily the failure of the Baltimore
and Ohio was due TO the impoverish-
ment of the people along its lines. Sec.
ondarily its collapse can probably be
traced directly TO its bulk of leased
lines.
Railroad building, in anticipating
the growth Of new country, has no
1oubt been overdone President T. B.
Of the Chicago and Alton
u his address to the stockholders calls
to the fact that railroad con-
'truction has been overdone in this
country that there are now 11S,TOS
niles of railroad in the United States
against 127, 673 in Great Britain, Ire
and, Belgium, France, Germany, Rus
ia, Austria-Hungary, Italy, and Spain
AIKEN together; while in the European
mentioned the total popula-
ion is 335,000,000, or an average of
1917 inhabitants to the mile against
My $50 in the United States.
The railroads have borrowed. and. ,
ricked by competition, have extended
mes in every direction and into terri |
cries they could not sufficiently devel-
p to sustain them. The Chicago and .
Alton years ago foresaw the result
+ such tactics, and sixteen or seven
cen years ago resolved on non-ex- ,
ension policy. While this course mas :
OF helped the west, it has helped the 9
'hicago and Alton which today has a | ]
capitalization less than the actual cost ,
f the property.