The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1917-12-01
RAILROAD DANGER SIGNALS

Railroad securities were deprecated by persistent foreign
liquidation before the possibility Of war in Europe entered the
minds of American investors, and they broke to such low levels
when war appeared inevitable in the last week of July that the
New York Stock Exchange was forced to close its doors. When
business revived railroad shares advanced to a fairly high level
III the fall OF 1919, and again in the fall of 1916 because their
gross earnings were breaking previous records and most Of the
oopanies were showing comparatively small but encouraging
gains in net income, though not sufficient to give them the
credit standing required by lenders of money.
Then came the Adamson law, the increase in wages and
cost of supplies, the entrance of the United States into the war,
the Communicating of transportation by the federal govern
ment and the great increase in costs of maintenance and Oper-
alton due to these causes.
Railroad shares have decreased fully 81 500 100000 in value
and railroad bonds 81, %OOO,OOOOOO in value on the New York
Stock Exchange within little more than a year, and are lower
than they were in the panic week that forced the Stock Ex-
change to close its doors on July 80, 1914. Traffic and gross
receipts are heavier than they were a year ago, but expenses
have increased so much faster than receipts that the companies
are headed for the bankruptcy courts.
Shippers clamor for better service, but oppose the increase
in rates which would enable railroads to buy rolling stock and
make repairs. Commodity prices have doubled since the war
began in 1914, but the railroads have received only a trifling
increase that does not cover the cost of the lubricants they use.
AS the president of a large insurance company that has invest
ed hundreds of millions in railroad bonds says, "war prices to
'e shipper, but hardly peace profits to the carrier"
Cotton, wheat, corn, cattle, hogs, copper, iron, steel, gaso-
line, coal, coke, wood, textiles, leather, shoes and sugar, among
the important merchandise transported bv rail, arr all worth
more than double what they were before the war. What is
more, the margins of profit to the producers, wholesalers and
retailers has increased in the same proportion. The railroads
alone receive no share of this general prosperity in which all
with whom they deal, including their own employees, are now
reVeling.
According to the interstate commerce commissions report
for the first six months of 1917, the railroads TRANSFORMATION
expenses increased 26 per cent, but they added only rs per
cent to their costs of maintenance. This disproportion means
that the railroads are wearing out their equipment because they
cannot afford to repair and replace rolling stock and rails.
The New York Central system contracted for locomotives and
passenger and freight cars costing 1913 1876 in the early days
of the war which at present prices would cost Si93O OPS. $40. an
increase of 100 per cent. Now railroad nployes are demand
ing higher wages again. How can our railroads remain eff
cient under such conditions? The stock market is telling the
story-New York Commercial.
Women have given up their hatpins as a means of Offense