West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1903-09-03
IMPENDING DISASTER.
Why Are Many Of the Railroads
Borrowing Money!
WALL STREETS rBvERIsH STATE.

Fo~prrttt only Skin
Deep and Collapse Seem. Prob
abic-rrust sfagnstes Respon.fble
For the Rotten condttIon-Rcform
IL fmperativeiy demanded.
There Is something rotten about the
financial standing OF the railroads II
the various reports OF their condition
are TO be believed The interstate com
inerce commission gives the official ng-
ures TO show that the railroads have IN
creased their net earnings during the
past five years 02 per cent. The annual
statement OF the baltimore and Ohio
for the fiscal year ended June 30 last
shows an increase of the net earnings
over the previous year OF s., ,7pS, ,82i.
Yet with this unparalleled increase OF
the Il. and o.. which for the month OF
June was new high record. the mar
ket price OF the stock has declined dur
Ing the year % per cent. All the rnil-
road stocks have declined. Chicago
and Northwestern. one OF the Wander
bilt group. has declined over 60 per
cent during the same period, and this
stock Is looked upon as representing
one OF the most stable and conserva-
lively managed roads in the United
States. The Pennsylvania railroad
stock has declined 40 per cent during
the present year. and this stock has
been regarded as good as government
bonds. and It's net earnings have In
creased beyond all previous records
The railroads included I'm the North
ern Securities company. the merger OF
which the administration has attempt
ed 60 prevent. have n surplus OF over
$4i,OOo.O00 for the last fiscal year, and
yet that stock IL rapidly declining I'm
value. One OF the roads leased by the
merger Is the Chicago. Burlington and
Quincy railroad. and Il has Just Dor.
rowed $5.OOO.000, for which @ per cent
was paid. the loan to run until next
March. The Union Pacific has also
Just borrowed $10.0O0,0O0 OH short time
notes What possible need can there be
for railroads to borrow money and pay
big interest when they have. according
TO their own reports, vast surplus7
There must be something rotten In the
state OF Denmark. Are all these rail.
rond reports OF vast earnings and their
large surplus tricks Of bookkeeping TO
induce the lambs to buy their stock In
Wall street?
There Is no doubt the railroads are
doing more business than ever before
and are charging the public exorbi-
tant rates Tor carrying freight and pas
sengers. SO they have undoubtedly
earned the increased money and their
expenses have not kept pace with their
earnings.
What have they done with the
money! Have the managers invested
II In Wall street or loaned II to the
banks. those with which they are con-
nectedl Wall street Is I'm n bad way
and the New York banks are inextrica-
bly, mixed up with speculation. They
are loaded down with vast amounts of
undigested securities - the watered
stocks OF the trusts and corporations.
The ephemeral prosperity OF Wall
street and the New York banks has
turned to tight times that forebodes
disaster.
Those OF US who are not interested
In Wall street could view the discomfi-
ture of the spectators and the extremi-
ty OF the banks with composure II It
did not affect business elsewhere, but.
unfortunately, II does. Wall street and
the New York banks and the railroad
magnates are also the trust managers;
they control directly or Indirectly about
all the products that comprise tho nec-
essaries Of life. Their tentacles extend
TO tho uttermost ends OF the United
States Disaster in Wall street stops
the wheels Of commerce. The banks all
over the country draw in their horns
and decline TO make loans. Even the
farmer feels the impending disaster,
for no cannot borrow n few dollars to
pny the hired man. The country mer-
chant stops buying goods, and the
wholesale houses reduce stocks and
tho manufacturer and tho importer do
n restricted business. Hard times come
on. Real estate Is unsalable and mort
gages and interest are impaired.
The Republican policy OF letting well
enough alone when the impending
panic materializes Will be Viewed by
the people as letting bad enough alone,
and the cry for reform will be sharp
and urgent. The protection to tho
trusts and the millions they have piled
up cannot stem the tide Of disaster, for
IN hard times high trust prices fall
more heavily on the consumer. That
such q rcvulsion Is coming no one with
his eyes open can doubt. The wise few
VIII prepare for e; the many viii suffer
for their lack Of observation. The
trust nnd railroad magnates are at the
bottom Of the impending evil; they
have controlled the policy OF the domi-
nant party and have supplied the funds
to Keep Il In power for their own
selfish onds. Tho Republican leaders
arc responsible; they have had full
swing and must abide By the result Of
their own work.