The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-01-06
RAILWAYS AND THE PEOPLE.

There is a great public question.
Which concerns every citizen of the
United States awaiting solution. 1t is
a serious question and is becoming
more serious every day. 1t is the rail-
road problem. How shall it be settled
with justice and fairness-with due re-
gard to the rights and interests of both
the people and the roads?
AS matters stand today both are suf-
fering from deplorable situation The
people complain of discrimination and
inequalities in freight and passenger
rates and many other things in connec-
ton with railroad methods which they
consider inimical to their welfare, and
probably their complaints are well
founded in most cases. Yet the roads
are not prospecting.
Some of the causes of these condi-
lions are not hard to find but the rem
edy is what must be looked for. That
rascality, watered stocks, extravaganza
and bad business methods in the early
history of many of the railroads are
responsible for many of the difficulties
now confronting the management and
the public, will hardly be denied. For
these transactions perhaps in a major
ity of cases the present owners and
managers of the railroad properties are
in no way responsible. They have been
compelled to deal with the situation as
they found it. And that is what legis-
lators, state and national should do.
1t wiss be necessary to exercise the
utmost care and conservatism in order
that while the people are obtaining re-
lief the railroads of the country shall
not be bankrupted, driven out of bust
ness and thousands of innocent inves-
tors be made to suffer. The appalling
record of railroad business in the Uni
ted States during the past few years is
thus summed up by the Railway Age:
Age:
The year just closed has been one of
disappointment and losses in all lines
of business, and as the railroads can
not prosper when other interests suffer
they have painfully reflected the gen
eral depression. The promise of in
creased earnings given early in the
year was not sustained and as conse-
quence many companies which, if good
times had begun, would have been able
to meet their obligations, were obliged
to default and turn over possession of
their property to the courts. Instead,
therefore, of the expected decrease in
the number of insOlvencies compared
with the previous year, we find an in
crease in both the number and mileage
of roads placed in the hands of receiV-
erS, although the capitalization inVolV-
ed is considerably less. Compared in
record of 1896 is favorable, although at
the best it is still band enough, for it
shows that during last year "a roads,
with 5,44l miles of lines and q bond and
stock capitalization of about $275, 500 900
joined the list of railways operated BY
receivers.
The five years of financial trouble
| commencing with 1898 have left a rec
! ord of bankruptcies far greater than
that of the preceding ten years and
more In that brief period 213 roads
| have been turned over to receivers, with
I lines aggregating So. 403 miles, or 80 per
cent of the entire present mileage of
| the United States. and a capitalization
representing over 179 million dollars, or
| about 80 per cent of the bonds and
| stock of our entire railway system to-
! day These are appalling figures. Ger
| tainly no other form of business invest
| ment has suffered such loss as the rail
ways within the past few years. In
| 1886 no less than SIS roads were sold for
! their creditors, representing 10 $50 miles
| of lines, and the enormous capitaliza-
ton of 1, $50 million dollars.
The most important failure of the
| year was that of the Baltimore & Ohio
| with 2,094 miles of road and over 124
million dollars of bonds and stocks. be-
! sides heavy floating debt and arrears
/ of interest. The bankruptcy of this
old and formerly profitable company
was discouraging evidence of the eff
fects of unlimited competition. The
other notable failures include the Lou
| isville, New Albany & Chicago. sol
miles and 2Ss4 millions of liabilities
the six roads forming the Vandalia sys-
tenn, aggregating nearly 500 miles and
| "a million dollars of bonds and stock;
| the Pittsburg q Western, involved in
| the embarrassment of the Baltimore &
| Ohio, 352 miles and 1917 million dollars
| and two related eastern roads, the Cen
| trail Vermont and Ogdensburg & Lake
| Champlain, covering us miles of road
and nearly II million dollars of invest
| ment.
The summary of receiverships for the
| last 13 years shows that 412 roads with
S0,S76 miles of track and nearly 5000
millions of capital have gone to the
| wall