The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1896-03-17

uneasiness. But unfortunately, the
adverse conditions against which the
B 4ltimore and Ohio struggled in vain
are general, not local. They have their
origin in the general depression OF bus
mess, and with similar adverse cOndi
! tions, railroads in ell sections of cOun-
| try have had to contend. This is evi
dtnced by the fact that more railroads
| are in the hands Of receivers to day
than ever before.
The prosperity Of railroads is depend
ent on the prosperity of the c5mmuni
ties through which they run, and from
which they draw their business. When
many mills and factories are idle,
| when others are running on part time,
| when mines are clOss d down, and when
the product G capacity OF the people
is thus reduced, the demand for trans,
| ~portatiOu facilities is Of necessity cur
tailed, for less being produced, there is
consequently less TO be exchanged,
railroads have less freight tocarry and
competition Cbliges them tocaTry what
freight there is al reduced rates. As a
result the earning of railroads are re
duced, payment OF dividends becomes
impossible, interest charges are in
many cases defaulsed an0~roads forced
into the hands of receivers.
During the past few years, as the fall
in prices has bsccm0 mOr AID more
marked, production, whether on the
farm, in the mill or in the mine, has
become less and less profitable, and
naturally production has been cur
tailed. The wage Garner in the man
ufacturing or mining town, much of
the time out Of work, and when at
work at lower wages. receiving lees,
has lees to spend, and the market for
the products Of the farm is consequent
iy restricted, while il turn the farmer,
finding his market restricted, is OBJ
iibed to sell his products at lower
prices, and as q result, receiving less
III return for his labor, has lees 10 spend
for manufactured goods. TIE desires,
the wants Of wage earners and farmers
are as great as ever, but their ability
TO purchase is curtailCd. Consequently
the demand fer transportation from
the factory to the farm, and from the
farm to the factory has become less
with the fall in prices, and the earn
ings Of railroads have fallen proper
tlOnately.
But while the earning of railroads
have fallen, their interest charges have
not The total bonded indebtedness of
our JaiIroads Of June 80, 1894 as given
by the last report of the Inter State
Commerce Commission, was S. 1856,
$50, or, or owe $31 600 for each mile
OF line. The greater part of this vast
sum calls for a fixed amount Of ir.qcr-
est, whether times are good or bad,
whether earnings are large or small.
Bu-d=ned with this vast dcbt that
grows IL wight as prices fall and the
earning capacity Of the raj road Is eur
tailed, the ability Of the railroads to
earn dividends for their stockholders
has decreased from year TO year, and
payment fdivijcnd8 hsa been stopped
0y one road after another, so that now
not more than Ooe third Of the capital
stock issued by cur railroads is divl
dened paying stock, Il many cases
suspension Of dividends has been fol
lowed by detaulg Of interest on bonded
indebtedness, folio we'd by r~ecaivershlp,
and reorganiz etion in which share
hoIdvrs fare badly. o" foreclosure, in
which they have lost their equity in
the property.
In view Of the fact that falling prices
are destructive Of the interests OF
stockholders, leading, as they newt.
ably do to curtailed production and
restricted demand for transportation
services, it is somewhat surprising shat
railroad managers, elected by the
stockholders presumably to run the
70 dg in the interests Of those they
represent, should lend their individual
aid and the power of the corporations
they manage in support of the appre-
ciating gold standard.
THOUGHTS ON A POSTOFFICE
TELEGRAPH.
From San Francisco Starl