The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-05
Few Railroads We're Bankrupted
During 1899.
MILEAGE INVOLVED SMALL
CAPITALIZATION WAS A LITTLE
OVER s52, 900, 900.
Dark Era For Railroad Builders Was
Ended In 1898, When Seventy
four Companies That Aggregated
$4,000 Miles Of Line Were Handed
Over to Receivers.

Chicago, Jan. 1.-The Railway Age
tomorrow viii say: The best evidence
that the year 1899 was one of general
prosperity is found in the fact that it
was year almost without railway
bankruptcies. In only two years since
1919 have the roads for which receive
ers were appointed been so few-and
IN only three of those years were the
mileage and capital involved so small.
Inc new Kansas City, Pittsburg &
Gulf defaulted in its obligations before
1t had time to demonstrate its earning
capacity. and was placed in the charge
Of receivers early in the year.
Of the nine others in the list, two are
short logging roads belonging to pri-
vate parties. One is an old narrow
gauge road that has never been profit
able and is owned by a great railway
company, which now proposes to
straighten out its title by foreclosure,
and the others are short local lines,
mostly in the experimental stage. The
total covering all these conditions.
represents companies with 1913 miles
of road, and a capitalization of a little
over So. 0O0, 600.
Bankruptcy Era Ended In 1898.
The long. dark era of railway bank
SeVenty-fOur companies, with nearly
10000 miles Of lines, were handed over
to receivers, has ended, and the new
year starts with the railways of the
United States, with very few excep-
tons, in a solvent and hopeful condi-
ton.
In 1876 the 1852 miles of roads for
which receivers were appointed repre-
sented over 81 per cent of the total
mileage Of the country, then $500
miles. The receivershipS for 1899 cover
only LOIS miles, or little over half Of
per cent of the present mileage
The record for foreclosure sales also
shows a large decrease in the number
OF roads and mileage over immediate
preceding years. indicating that the
supply of bankrupt companies is being
steadily reduced. Nevertheless, the
foreclosures for the year included
thirty-two roads, with 1924 miles Of
lines and S267 100000 Of capital, Of which
$l55, 600 was represented by bonds.
Nearly All Small Lines.
While most of these roads are small.
there are several very important prop
critics in the list, including Central Yer
mont, Baltimore & Ohio Southwestern.
Wisconsin Central, Wheeling & Lake
Erie. Cleveland, Canton & Southern,
Columbus, Hooking Valley & Toledo
and Jacksonville, Tampa & Key West.
These seven roads have 1850 miles of
line and represent an apparent invest
ment Of over 1920. 600, 600. An appalling
proportion Of our railways have now
gone through the costly experience of
foreclosure sale. For the past twenty
four years the foreclosure sales have
averaged more than thirty-fOur a year.
the largest number 10 one year being
sixty-five and the smallest fifteen. in
the last six years 273 roads have been
sold, yearly average of 4515, not
counting a number Of insoIvent COM
panies that have been reOrganized
without sale. It is not conceivable that
the coming quarter century will show
any sucn rate Of mortality among
railroad corporations.