Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-01-14

prices afterwards reached by junior
stock issues of SOME of these reorgan-
izations showed how little hope of fu~
ture value they carried. Not only had
old indebtedness to be provided for,
but new millions of capital had to be
expended to improve anu cheaper the
cost of transportation. Only expert
railroad men are competent to under
stand the marvellous increase in eco
nomic efficiency of railroads as instru-
ments of transportation by the better
equipment, improvement of operating
methods and permanent structures cut
ting down annual charges for repair
and maintenance.
With the ability thus acquired to do
larger business, the benefits of the
larger transportation induced by the
low freight rates had a gradual
growth. With competition constantly
forcing the freight rate downward and
keen rivalry in the Improvement of
facilities, the early increases Of earn
ings were practically all reinvested,
in improving the property. Stock
holders hopes of sharing profits were
thus long deferred. A perusal of an
nual reports of the great railroad sys-
TENS of past few years shows how
large are the amounts Of current earn
ings used for permanent improvements
and betterments and which may Justi-
tiably be expected to result in reduc-
ton of annual charges in the future.
In some cases the requirements Tor
such extraordinary expenditures are
already about filed. 1t will be observ-
ed hat these improvements in condf
tons of railroads are quite aside from
the enormous development of general
trade and business Of the past few
years. Nothing has served to check
the obstinate downward course of
freight rates or to prevent rate cutting
and discrimination. The federal gov
eminent, recognizing it's evils, at
tempted to secure the observance OF
uniform rates by %enacting the inter-
state commerce law. But he anti
trust law at the same time made 1t a
punishable offense for corporations to
form an agreement upon rates for
charges. 1t is in its bearing upon this
last most obstinate problem OF rail-
road rehabilitation that the new pol
icy of community Of interest has
greatest Importance. An increase of
one-tenth OF one cent in the average
charge for transportation of a ton OF
freight one mile would increase rail-
read earnings in the country many
millions of dollars every year. This IS
a sufficient indication OF the advant-
ages to railroad stockholders Of doing
away with rate cutting and secret re-
bates which is believed to be assured
by the TRANSMISSION of interests among
the competing and connecting railroad
lines. The New York Central and the
Pennsylvania railroad. led the way
and proved the benefits of the policy.
Such is the deep seated foundation Oh
which the present unprecedented buy
ing Of railroad stocks is founded.
Notwithstanding the fragrant exagger-
atoms that have found cfedence In the
speculative furore there is no reason
to doubt the substantial extension OF
this policy Of community of interest
in the railroad world. AS it is erected
largely by exchange Of securities, the
great financial transactions involved
have not notably affected The minor
market. On this firm basis the specu-
lators have reared a fabric of rumors
and deductions. Should speculation
overrun actual conditions the fact
would be in line with all history. The
lesson from all human precedent
would be repeated. But the fact OF
speculative imitation followed 10y a
ton does not alter the impressive i'm
provement in conditions which has
proved the incentive for the specula-
ton.
The demand for bonds has been
large but by no means commensurate
with stocks as their level of value has
been more accurately known by a
of the fixed interest return.
L. S. refunding Is advanced y per
cent over the call price of a week ago.
Railroads..