Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1903-08-14
IMPENDING DISASTER.
The Railroads Borrowing Money
Wall Street Excited.


There is something rotten about the
financial condition of the railroads, IL
the various reports of their conditions
are to be believed. The interstate
commerce commission gives the off.
cial figures to show that the railroads
have increased their net earnings dur
ing the past five years So per cent. The
annual statement of the Baltimore &
Ohio for the fiscal year ending June 80,
1903, shows an increase of the net
earnings over the previous year of ST..
79S,321. Yet with this unparalleled
increase Of the B. & o.. which for the
month of June was new high record.
the market price of the stock has de-
! clined during this year % per cent.
All the railroad stocks have declined.
Chicago and Northwestern, one of the
Vanderbilt group, has declined over so
per cent during the same period and
this stock is looked upon as represent
ing one Of the most stable and ccaser.
vatively managed roads in the United
States. The Pennsylvania railroad
OWN hdo oCSIlACu ~ pei CcHl
the present year and this stock has
been regarded as good as government
bonds and its earnings have increased
beyond all previous records.
The railroads included in the North.
ern Securities Company, the merger
of which the administration has at
tempted to prevent. have a surplus
of over SAL 100000 for the last fiscal
year and yet that stock is rapidly de-
Ginning in value. One of the roads
leased by the merger is the Chicago,
Burlington G. Quincy, and it has just
borrowed $50OO,OO for which per
cent was paid, the loan to run until
next March. The Union Pacific has
also just borrowed $10,000.000 on 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
surplus. There must be something rot,
ten in the State of Denmark. Are all
these railroad reports of vast earnings
and their large surplus, tricks of book
keeping 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 exorbitant
rates for carrying freight and passen-
gers. So they have undoubtedly earned
the increased money and their ex-
penses have not kept pace with their
earnings.
What have they done with the
money? Have the managers invested
1t In Wall street or loaned it to the
banks, those with which they are con.
nected? Wall street is in a 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 discom-
future of the spectators and the ex-
tremity OF the banks with composure
if It did not affect business elsewhere,
but unfortunately 1t does. Wall street
and the New York banks and the rail-
road magnates are also the trust man.
ayers. They control directly or in.
directly about all the products that
compose the necessaries of life. Their |
tentacles extend to the 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 i'm
bending disaster, for he cannot borrow
4 few dollars to pay the hired man. !