The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1896-12-01
AMERICAN RAILWAYS.

Inc E6I1EOAuS Ol JIG A4CSG 0VaVSS
| are mortgaged to the extent Of about
| S., 900. COO, 900, and they have other in
debtedness (Which it costs them as
much or more to carry, and which
must sooner or later be covered by
bonds) to the extent Of nearly 81 600,
900, 900 more. It must cost them at
least $500, 900, 900 a year to pay inter,
est on their Indebtedness. There is no
way to escape any of this indebtedness
except through the door of bankruptcy,
with the sequel Of receiverships and
congratulations. Already, within q
few years, a great portion OF the rail
way systems Of the United States have
got rid of portions Of their indebted
ness by this very process. Otherwise,
the total volume Of railway bonds
mentioned above would be considerably
greater than it now stands. At pres
ent, the railroad companies Of the
United States are obliged to make each
milo of road in the whole country earn
and pay interest on an average fixed
debt Of about $40, 900 wages and other
operating expenses having been INST
before anything can be given to the
stockholders. The obligations TO which
we have been referring of course do
not include the voluminous issues of
stock which represent the ownership
rather than the Indebtedness of the
roads. Tne management Of railway
companies in she United States is often
a~utocTaEic 80 the last degree. When
once directors have been elected by
the vote OF the nj rity Of the share
holders they take the most Important
steps without ever consulting the
shareholders; ana IL their annual re-
ports they give only such jntorma-
ton IS they please, subj ct to no exam
iuation by independent auditors. This
state Of things naturally leads to grave
abuses, direotoraI mjs0snagemenG aud
dishonest speculation ii bonds and
shares R-vIew of Reviews.
The railroad interests Of the U0ited
States, it is hardly necessary to say,
are immensely important, not only to
the share and b0ndholders, but to the
whole country as we'll. And yet their
present condition is deDiGrable. Most
Of them were exEravRgan5ly built, and
many OF them have been ~corruptIy
managed. In consequence their bonds
and stock are out of oil proportion to
the real value Of the roads. Many Of
them, by schemes of reorganization,
have destroyed the Investment Of IN.
nOcent holders, and enabled the reCk
less managers, whose policy and whose
acts have brought the properties with
which they we're intru5ted into bank
ruptcy, to retire in security with i'll
gotten fortunes. The only remedy of
this safe of aft airs Is effective legisla
ton. Another thing that requires leg
islatiOn-and that IN the interest Of the
railroad companies G~hemseiyes-is the
limitation of amounts given by jurors
in accident cases. Il jurors may,
without limit, give to a plaintiff IN an
accident case whatever their prej idice
or sympatiea may suggest, it Is easy to
perceive that herein is a menace to
the existence of the property its3lf-a
property in which not merely share
holders aud auditors are interested,
but tue whole community as well. In
England, by the Employers Liability
act, the amount OF compensation IL
the case Of injury TO a workman, we
believe, is not to exceed three years
earnings of the employee. This may
not be enough; but both in the q of
employees and others, we venture to
think, there should be some limit, some
impeachment to the extravagant verdicts
which have recently illustrated the
proceedings of our courts. -PhiladeI-
phia Record.