The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-01-31
9ailu Ea9le
NJ. Nj. MURDOCH. Editor.
RAILROADS POOR PROPERTY.

Railway stocks and securities are no
longer in high favor as an investment,
or even as a speculative value. The
stocks Of but few American roads long
er figure in the market reports. Failing
to shrink in quoted value as rapidly as
other classes of property under the
Cleveland squeeze and object lesson,
the strain and the efforts of manage
nents to keep up fixed charges, and pay
dividends to the owners of the stock
became too great and 40 or so per cent
of the entire mileage of the United
States collapsed and has gone into the
hands Of receivers to be scaled down TO
a living basis. Thousands upon thou
sands of individual fortunes have been
wiped out and thousands upon thou
sands of people beggared. Still the Pop
fight against all this class OF property
wakes. Robert J. Porter, the statlsu-
clan, having gone into an investigation
of the condition and real present values
of American railways, publishes some
Of the facts In spite of all private opin-
ion and public prejudice the facts are
startling. Orphans and widows es-
tates by the tens of thousands, the
hoardings and savings of many lie
times and the fortunes acquired sudden
" by successful ventures or speculation
have allalike, been swallowed up by
the vast and unavoidable shrinkage IN
railway earnings and consequent de-
probation of values. 1t is chapter OF
wrecked properties and defaulted bonds
Over two-thirds of all the outstanding
stock of railway corporations paid no
dividend at all in 1895. The same is
true of Il per cent Of all the railroad
bonds in this country.
One of the emphatic declarations mace
by Mr. Bryan throughout his campaign
last fall was to the effect that during
all these years of depression and hard
times the railroads made no reduction
in their charges. 1t is a hard thing to
say, but either Mr. Bryan did not know
what he was talking about or otherwise
he deliberately falsified a universal rec
ord for the sake of the votes he might
win through prejudice. Mr.. Porter's
figures taken from the books show that
between 1880 and 1895 the loss princi-
pally from cuts on rates amounted to
Sc, 100000 on passengers, and SSI 1000,
coo on freight traffic, or a cut and
loss of upwards of one hundred and
TWO millions of dollars. Such a sum
would have held up a good deal of
stock, paid vast amount Of dividends
and prevented many receiversnips.
While in one sense the people seem to
have profted by this reduction, yet in
another sense they have lost by it. The
reduction of rates below the point at
which business can be prOfitably con-
Quoted means either the reduction of eX-
penses, with enforced ldleness of thou
sands of workingmen and the impair
ment of the roads equipment. or bank
ruptcy. Either course throws the in
jury sooner or later upon the public.
The truth is that depression in all lines
of business affects the railroads appre-
ciably. They have suffered through the
hard times and they are entitled TO con-
sideration in their efforts to keep out of
the hands of receivers and pay their
legitimate expenses. The manufacture
ing interests of the country now have
the car of congress. The railroad in
dustry, representing more capital and
greater values, is not asking for con-
gressonal assistance, but it has the
right to ask at least for fair considera-
ton Of railway conditions.