Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-02-29
BULLS AND BEARS
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. February ga few weeks
ago representatives Of several of the
larger southern railroad systems and rep
resentatives of some Of the most import
ant industrial corporations in the south
stated that apparently the state officials
who had been the most aggressive toward
corporations In the south had decided to
carry out more friendly policy. Officials
Of the southwestern railroads have had
reason to believe recently that the state
authorities In that section. instead Of
maintaining friendly and reasonable at
titude toward the railroads. had decided
to be more aggressive than in any time
since the agitation regarding the railroads
became SO general.
Those who are familiar with the matter
regard the report from Texas that the
chief executive of the commonwealth has
given orders to have the Texas and Pa
cific Railway Company placed in III"
hands OF receivers as particularly dis
duieting. These persons are familiar with
the act that for some years the Texas
and Pacific management has made heavy
deductions from earnings for improve
ments. and that as consequence the
physical condition of the property for sew
eral years has been better than that Of
any other road in the Gould system. Not
only this. but the financial position OF the
company has been kept particularly
strong. There has been no important issue
OF either stock or bonds for some years.
Additional amounts Of bonds have been
issued as new lines have f,een competed
The company has expended large
amount OF money both on Its roadbed and
for equipment.
In spite Of this fact last autumn it was
ordered by the Texas railroad commits
sion to buy a large additional amount Of
equipment and more recently per-
emptory order was issued by that body
to relay with IS or 80 pound rails GER
with new 65-pound rails. In the jude
ment OF the management the latter weight
Of rail will be entirely adequate for the
traffic that will be handled on that line
For some time to come.
".
Careful students of the situation point
ed out this morning that. If railroads in
the position of the Texas and Pacific. both
physically and financially, are to be
thrown into the hands of receivers by
radical state authorities. the situation is.
indeed. extremely serious. Those of a
most hopeful turn of mind. however
have been confident all along that the
aggressiveness of state authorities would
ment and that action on the part of the
people would be FASTENED by the cutting
eff of dividends and interest and the cur
tailment of the service rendered by the
railroads.
1t is now feared by prominent railroads
and banking officials that unless the peo-
Pile of this country. particularly in the
south and southwest. come to the front
soon and act. the position Of the rail-
roads will be extremely serious.
A stock exchange member says that
he had occasion yesterday to canvass
the more active members on the floor
and that he was surprised to find only
comparatively few of the representative
men. A large proportion Of those pre-
ent, he said. were individual traders. In
his opinion there will be no special change
in the character of trading In the imme
date future. 1t is known that important
interests are more apprehensive regard
ing the railroad situation than they have
been at any time since the beginning of
the panic last autumn.