The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-05-26

Az - = SO9 404o -le
mot promise immediate return IL For
capital expenditure the railways are
nearly always obliged to seek new
capital.
SURPRISES Cut Down.
/ In the six years that succeeded 1898.
SURPRISES not only were whitfield
down and exhausted, but new capital
was not obtainable During those six
years the country wfs saturated with
pessimism. II was the common cry
that the manufacturing capacity ex-
ceeded any probable demand for q
generation to come. Right and left 1t
was said that the pauper labor OF Eu-
rope made 1t impossible for the United
States to continue in the worlds mar
kets; politicians and undertaking writ
ers uttered dire misgivings as to the
oncoming competition Of the awaken
! ing East, the so-called yellow peril OF
the Orient. Under these conditions
railroad manager who would have en-
deavored to obtain new capital for ex-
tending track and extending equip
ment, for increasing the capacity OF
his railroad beyond immediate needs,
not only would have been unable to
obtain the money, but would nave
| been deemed lunatic. The energies
| of the great bankers were not then
devoted to raising new capitai IN prep
aration for the future, but to the re-
adjustment Of existing capital issues
that the railroads might be kept run
ming at the time.
| That the pessimism was without
foundation was proved by the course
of events Yet at the time the de-
snairing utterances were believed to
portray the conditions.
The resumption of business that be-
gan in 1893 was under terrific head
way In 1899, Mills and factories that
| long had been idle were working night
and day; the farms burst forth In
plenty. Although but few years be-
! fore in the great cities public and pri-
vate charity was feeding thousands OF
workingmen who gould not secure en-
| pIoyment, there Mas now work for
multiple the number of men that were
available. Capital flowed into new in
vestment like the rush of vernal tor
| rent Millions and millions of dollars
were ready to open>new mines, to build
new mills and factories and to pro-
vide new machinery and to erect new
skyscra pers. new hotels and theaters.
| Came on Them Unaware.
This burst of business came upon
| the railroads pretty much as the
Spanish war came upon the war de-
partment. President Mckinley held
iup the war to give the department a
chance to get ready. but there was no
body to hold up the food Of traffic
until the railroads were ready. 1t hit
them fore and aft and amidships.
What seemed like spring freshet In
| 1900 had become a raging torrent In
1891 There Is no business in this
country that does not have to rely
upon the service of the railroads, and
/ 1t is hardly an exaggeration to say
that at that time there was not a
business in the country to which the
railways rendered service that was sat
isfactory to those engaged in its d.
rection. Raw material coming in and
finished product going out were sub
jected to unwonted delay. There was
not a MILL or a mine, or factory, or
a farm that was not clamoring for
more cars and prompter service. Re-
tail stores were complaining and even
/ the householder awaiting a shipment
of furniture had his patience exhaust
ed.
| At that time the railways were not
even given credit for doing the best
/ they could. They were moving an UNI
precedented volume. OF business. and
the country was prospecting as never
| before. Mines and mills had never
turned out so much; the stocks in
wholesale and retail stores had never
| been so heavy. Yet the railways did
not have tracks enough, cars enough
| locomotives enough, or employees
enough. and there we're manufacture
/ ing plants that were stating away their
men at the same time they were com
planning of their service. The rail-
ways were so clogged that additional
| traffic meant q loss instead OF a gain.
! The railway managers learned that
they needed more capital, that there
was immediate use for every dollar
they could get, but when they asked
| for millions instead of the hundreds
of millions which they really needed,
| the country was aghast. Money had
poured into mines. mills and factories,
and farms were rising steadily In
value, but when the poor dog of the
railways asked for bone it was kick
ed and cuffed. Rails, cars and loco
motives had been ordered, but the
| factories also were clogged- This con-
| dition lasted the greater part of three
years. The business reaction in 1908
brought some relief.
In these three years the railways
did a great deal toward expanding
their facilities: rails. cars and loco
motives at last did come. and they
came in mighty volume. But there
were respects In which the railways
were handicapped by the very ad-
vances which they were making. For
example, 1t was In about 1895 or 1896
| that were built the first steel freight
cars. with capacity of forty and fifty
tons, exceeding by about two-thirds
/ that of the cars commonly in use.