The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1896-03-17
RAILROADS, TAEIR MANAGE
MENT AND THEIR STOCK
ROLDERS.

naturally given rise to much appre
hension, and q feeling of uneaeiness, as
TO the true condition, and real pros
poets of u railroads IL general. The
Baltimore and OHIO system was sup
posed to have shared in the general
improvement of railroad business re
ported for the year 1895 over 1894, and
to a degree quite equal to the reported
Improvement OF railroad conditions in
general, say the Philadelphia Ameri-
can.
As reported by Bradstreets the gross
earnings OF 135 railroads, embracing
nearly 50 per cent. Of toe total gross
earning capacity Of ali the railroads of
the United States aggregated for the
year 1895, 1904, So, 155 against $780,
$50 Oil i'll 1894, and 1857 A C73 in
1898 Tnus, as shown by the reports of
these reads to Bradstreets the year1S95
showed a marked Improvement over
1894, but stall a considerable failing off
in earning as compared TO 1898 This
improvement was also manifested in
the reports Of net earnings, earnings Of
these same roads over and above oper-
ating expenses Gggrega.ing 1886 542,-
6l2 for 1895. 80 against $26l 434 535 in
1894 and 1896, $50 323 IN 1898.
In the general Improvement, as indi
Gated by increasing gross and net earn
ings, the Baltimore aLd Ohio was re
| ported to have shared. gross earnings
have been reported i S23 AS, 7i9 ia
1895 against $2l 761 81, in 1891 and
$25, 240. 100 in 1928 And while, as the
case with railroads in general, the net
earnings Of the Baltimore and 0 no fell
from s.. 673, PSI IN 1928 to st 400 .6l5 in
1894 they rose ii 1895 20 s., 1876 424
Thus it will DE sen, the reports is
sued by the BAItimore and ONO showed
an apparent Improvement quite equal
TO the Improvement Of railroad c3ndi
TONS IN general. As Indicated By the
! reports, 1895 vas 6 year Of greater
! promise than 1924, yet to day the Bal
Uimore and Olio System is III tie re-
c~eivers' hands.
! With the appointment Of receivers it
has become painfully app&rentthatt.. the
! published reports were misleading. it
Is evident the reports of the company
were so compiled Sc to hide the real
condition Of the property, bat there is
no evidence that the company was
Systematically robbed. Toe truth
seems to be that the company, strug-
Cling against adverse conditions, was
| unable to earn its interesj charges. he
general knowledge of which would
have Immediately shattered the credit
Of the company AMI forced it nnmedi-
ateiy, as it eventually did, into bank
ruptcy. To avert this bankruptcy IL
was necessary to borrow, and TO Dor
row, if the true condition Of affairs be
came known, would have been impos
sibIe. Hoping against hope that bu7i,
ness would improve, leading to IN
creased demands for transportation Of
freight and passengers, leading in turn
to increased earnings sutfi lent to pay
the accruiug indebtedness of the com
pany and restore il to sOlvercy, and
hoping to tide over the interim and
avert bankruptcy by borrowing, which
would nave been imposs bic if the true
condition Of the company vas public
knowledge, the temptation to hide the
true condition of the company, in the
hope, that proved vain, that by 90 do
ing ~receiyership could be avoided,
seems to have been too great to be re
s;s.ed. If such were the hopes Of the
management they were doomed to dis
appointment. The period during which
earnings proved insufficient to meet
interests and other necessary charges
proving nor than temporary, what
was hoped would be a short interim Of
lnsufficiency Of receipts to meet &C
cruIng interest and other charges
proved too great to be bridged by Dor
rowing, Consequently, adding to the
floating debt, proved Of no avail to
avert bankruptcy, and has only served
to further involve the company.
If the adverse conditions against
which the Baltimore and Ohio strug-
gled in vain were Of special origin af-
fecting that system alone, if they were
adverse conditions with which the Bal
timore and Ohio alone has had to con-