Semi-weekly herald., 1913-01-23
STARTLING RAILROAD
SlTUATiON IN COLORADO

DENVER, Colo, Jan. 2l.-A ss,jrt-
has been revealed as result Of an
investigation beng made to determine
whether the state Legislature will act
wisely at the Time in cnacting laws
which threaten to hinder, if not stop
altogether, railroad building and de-
velopment in the state.
The investigation SHOWS that during
the past year six railroads operating
il6 miles Of track, and with. seeuri-
ties in the hands Of the public to the
amount Of $7a,520,000, went into re-
ceverships in Colorado. The receiver
ships, in every instance, were due to
the fact that the companies were un-
able to earn sufficient income to meet
operating expenses and the interest on
their Indebtedness.
These figures assume an ominous
significance when it is known that
onc-t third of all the railroad compa-
MES operating more than ten miles of
| track in the state failed during the
year. These six companies own 1875
| per cent of all railroad mileage in
| Colorado.
Almost half the railroad companies
| in the United States which failed dur
| ing 1912 are in Colorado. Twenty
per cent of the mileage of roads in
recevership in the country belong to
Colorado lines. Forty-three per cent
If the capitalization of railroads which
failed during the year was issued by
Colorado companies.
In addition to this remarkable show
ing, it is fact that the railroad
with the largest mileage in the state
thc Denver & Rio Grande, stopped
payinp dividends to its stockholders
The Colorado & Southern, the second
largest local road in Colorado, re-
duced the dividends on it's common
stock from 2 to only | per cent pei
year Other roads of lesser import
lnce made no attempt whatever tc
distribute any earnings among theii
stockholders.
Railroad building in the state prac.
tically came to a standstill during the
wear. The Railway Ages Gazette re.
ports in its annual for 1912 that onl,
G.27 miles of new first main line
track was constructed in Colorado.
These figures bring up the question
Of whether it is wise, in the face oi
this showing, and with every sec
ton of Colorado begging for new
roads and the expenditure of morcy
for development purposes. for the lee.
islaiure to enact laws which are go
ing to further reduce the meagel
earnings of the transportation lines
and throw other companies into bank
rapicy.
If one-third of the railroad compa
nics of the state failed within on,
year because they could not earn th,
interest on their Indebtedness, the
question is being asked how can the
others hope to carry on expensive i'm
orovements, build new lines into un,
developed territory and bring settlers
tc the state If their burdens are tc
be further increased by adverse legis
lation.
Railroad officials frankly admit that
if they are compelled by law to main.
tain service on lines which are rur
at a heavy loss, increase the operat.
ing expenses of their companies by
running full crews, submit to arbi.
tfary rate reductions by utilities
court, which will decrease their earn
ings, and comply with other severe
| and, in some instances, unreasonable
requirements that they do not see
low they can carry out the program
Of improvements and extensions for
which every section of the state is
b. gging. They declare it to be next
| to a physical impossibility.