The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-31
DARKEST DAYS FOR
RAILROADS IN 1915
Smallest Extension in fifty
Years-Almost Record tx.
tent Of Bankruptcy.
CHATTING" rs BLAMED

The annual statistical number OF IN.
Roiiuoy Age Gasetts. which viii b.
published to-day. will show tina, IL.
mileage built in the past 20 was N,
smallest eincs 1854. and that railroad
bankruptcy statistics were almost III,
greatest In the oountry's history. IN an
article on railway expansion the Ga.a,,.
says:
"Neither the statistics which have beer
compiled by the RotVdy Aye Gaset,
since 1898 nor those which have been
compiled by the Interstate Commerce
Commission since 1887 extend IA enougl
back to offer a precedent for the cond
tons which have prevailed IN 1915. II.
statistics OF 'Poor's Manual OF Railroads.
which 60 back to 1898. cover for calcnda.
years not the new mileage built b.,
the increase In operated mileage. The
two things are not the saine. for a rail.
way line built in n year may not he
put Into operation until the next. How.
ever. bearing this fact In mind. poors
statistics may be used for comparison
They show that the only years since fs.s
when the Increase In operated mileage
was less than 1000 miles were 1861
1852 and 1864: the new mileage
built n 1915 was less than this amour,
In other words the only period within
the last ~siXty-six years which Is com
parable with 1916 In respect TO new nile
age built Is that during which tho nation
was devoung its energy and resources
not to its economic and industrial De
velopment but to the prosecution o.
the greatest wal in history until III.
present one in Europe
THE showing made by these figures .
rendered more impressive II they be ON.
sidered in connection with the fact that
in October, 1915. there was tie greatest
mileage OF railroads in the hands OF TO
ceivers in the United States ever re.
corded. This Is not the case at the end
of the year only because since then tts
recelvership of one large road, the
Wabash. has been terminated. The
number OF cars and locomotives bough.
In 1915 was greater than In 1914, but Il
was smaller than in any other years eK
cept 1905 and 1914. since we began com
pillng statistios on this subject.
1T is evident that the condition IN re
railway field In the year now CLOSING hu
been largely due to causes which did 10;
operate In the past or which have oper.
ated recently with unprecedented fore.
Furthermore, what hose causes are
must be clear to every person WHO has
studied railway affairs n the railway
situation with the desire 10 understand
them. The outgo Of the roads has been
increased enormously by advances ~
wages and taxes and by regulation hy
the State and national governments aIa
thair fnfal aarntnna hayA mean yaa, rip sat
BY regulation by the State and national
governments.
Ground between these upper AND
neither millstones the income availabl.
for interest n dividends has trendeG
downward for nine years. II has no.
become relatively as small as IN som
earlier periods. out in those periods ~
roads were not subjected as they ",
now to regulation. one of che main aNov,'
purposes of which is to restrict their ne
return. In consequence In those earlieI
periods capitalists and railway MANAGE!
were encouraged to continue "a make H..
vestments In permanent and in new lines
by the hope expectation that atiei
the depression had passed they would b
able to make large profits which woulI
more h Offset the losses incurred l
bad times.
The present system OF regulation has
effectually discouraged such hopes am
expectations. This unquestionahly ia tie
correct explanation OF the condition 10
the railway field disclosed by our s:s-
tistics for 1915.
There are many men of the railway
batting type. such as Senator La Toilette
Senator Cummins and Clifford Thorre
who In reply to such statements a. ~,
foregoing pile up Ions rows Of figure 10
show that under regulation the railway
have been are eminently prosperoE
and that therefore regulation IL uut r.
sponsible for the interruption of rt.,vsy
development and consequently should no
be made less drastic.
ut is usually easy TO dcmollsh to-
statistics and the conclusions they drRv
from them, but the situation which &c
tually exists Is the best answer 10 then
II demonstrates beyond question tina,
capitalists are not disposed to invest ~
railways. The must. therefore oeli~v.
that such investment would he unproN'
able. Those who have shown hat e"
know how to make mone bv makius %
must be better Judges of the relst'-
prohtableness of investment IN the va
Gus fields than even the most emlncr
statesmen or the class mentioned IN
way. their opinion. and not that ~ RAJ,
way busting politicians. is coUtrol..r z L.
for they have the capital and Wi, west
II where they please. and the facts bow
that at present they do not please 20 .'
vest 1t in railways"
one of the Gdeette's tables shows fore.
closure sales in 1915, as follows:
Fnni-i
debt out So.
Name Of COMPANY standus -t.alH.
Arkansas. Louisiana 4
Gulf .-.........-... S.c9o"n So I'd.
Atlantic Northern ......... l.0O 70 ~
Buffalo & Su~uuehauna 6.l6.Ol uph
Clns'nnatl, Indianapolis 4
Western .........,... SI.SNo "
't1t1gead. OcIla 4
Rroxton .....""..,. $4,000 100
CHICAGO ....,.m~,.e..- r4.ucec y SD
Mc,'f e., ,sa."-'''.~ soin@ ""
Opelousas, Gulf 4 North.
Eastern ....,.......,,., '.t." " =.
wabash Observation-Disclosures. q go H 80
W~lihamsville, Grseuvlie
& -. ouis-.......... g.ur t'
Totals ....,",,,.... ,@OSlol s.. S.
TINS road was sold under force.
laicr in. operation OF Il was disc '
THE amount OF o~utsianilus So, o.
tins road Is not ascertalnahle
The lines in this tahla have a s