Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1901-01-09
the RAILROADS..
OBSERVATION-DISCLOSURES,

The number and extent of railway
bankruptcies in the United States last
year was a little greater than in 1899,
but with that exception they were very
much less than in any year since 1887.
In all but perhaps two or three instan-
ces, the financial troubles began some
two years ago, and are not to be attrib-
TIED to conditions existing in the past
year. Sixteen roads, with 1,165 miles of
line. and over 10000 900 of bonds and
stock, were placed in the charge of re-
ceivers in 1900.
The most important company in the
list is the Chicago and Grand Trunk,
with 327 miles of line and over $4,000, 900
of securities. This property. which was
virtually owned by the Grand Trunk Of
Canada, had long needed financial re-
organization, with scaling down of it's
Indebtedness. and rate of interest obl-
cations, and the appointment of re-
ceiver and the speedy sale under fore
closure We're we'll anticipated steps. The
first three roads in the list, represent
ing 272 miles of lines and over 900
o. capital, are virtually one in interest
and their failure, and also that of the
other group of three short local roads at
Kansas City, Boosting $13,6O0,00O of bonds
and stock was the sequence of the
breaking up of the Kansas City. Pitts
burg and Gulf system of foreclosure
last year.
The only other road of Importance,
the Vicksburg. Shreveport and Pacific,
had for many years been struggling with
adversely. The Cerrillos Coal railroad,
which. with only six and one-half miles
Of fN <ho vit al
footing is primarily a coal-mining CONF
rany. and it's misfortunes cannot be
fairly be connected with railway opera
ton. The era of railway bankruptcies
seems now to be nearly ended. and the
receivership business. which has -four
ished nightly during the last quarter
century, is likely to he dull at least for
some years to come.
The record of foreclosure sales for last
year, although considerabl BILE. is also en-
couraging, being the smallest in all re-
spects in the seven past years. indicat-
ire that the material in the receivers
office has been pretty well worked over
During 1900 there were "a sales. involv-
ing 3,4l7 miles. and an apparent capitai-
cation of $190000000. The Kansas City
Pittsburg and Gulf fiasco made up about
one-fourth of the entire mileage and
capitalization in the list. The Toledo
st. Louis and Kansas City. Chicago and
Gland Trunk. Louisville Evansville and
st. Louis, Peoria, Decatur and Evans
vile, and the Chicago. Peoria and ST.
Louis and it's associate five important
enterprises, account for so per cent more
of the entire mileage, leaving the re-
raining one-quarter represented by sew
erteen roads of comparatively small
extent.
1t is time that the sacrifice of rail-
way securities by forced sales should be
drawing to a close" says the Railway
Age. "A large share of the railway
mileage of the country has now passed
through foreclosure. In the twenty-f
years that this paper has kept the record
the sales and resales have numbered S4S,
covering almost 10000 miles of roads.
end involving-often wiping out-securi-
ties aggregating' in face value over six
and two-thirds billion dollars-equal to
more than half the present entire rail-
way capital of the country. 1t has been
a bad quarter Of century for investors
in railway securities. On an average
thirty-four companies every year have
suffered sale by foreclosure. The early
fury certainly will show few foreclos-
ures, for the supply of bankrupt roads
is about exhausted. The year 1901 starts
out with only fifty-nine roads in the
hands of receivers, with a total of 1853
miles, or an average of only forty miles
each"