RAILROADS FORECLOSED

Seventh-day Adventist Publishing Association · Battle Creek, Mich. · Jul 18, 1878

RAILROADS FORECLOSED.

The Railway Age of January 3 contained a complete compilation of the railway-foreclosure proceedings of the country in 1877. It states the number of roads sold and wound up to be 54, covering in all 3,897 miles of track. The bonds and debts of these roads amounted to $110,938,700, and the capital stock $79,045,700, making the total bonds, debts, and capital invested $198,984,400. This is a fearful record of loss, but it does not bespeak the total. During the year proceedings—which are still pending—were commenced against 44 roads covering 5,409 miles of track. Of these the bonds and debts amounted to $164,573,890, and the capital stock amounted to $156,108,040, making the total bonds, debt, and capital invested $320,681,930. These statistics add greatly to the appalling record, but there is still more. The courts ordered 16 roads to be sold at auction on various dates which have not transpired. They cover 2,388 miles, have bonds and debts to the amount of $128,833,400, and capital stock amounting to $126,921,960. The total bonds, debts, and money invested being $255,755,300. The Age closes its statistics with the following statements:—

“Eighty-four roads, with a completed mileage of 7,721 miles, or one-tenth of the entire railway system of the United States, and representing an apparent investment of $400,000,000, also about one-tenth of the total railway capital of the country, have in two years been sold under foreclosure, and have been ‘scaled down’ to perhaps something like fifty per cent of their original valuation. The figures for proceedings commenced, etc., are only given for the purpose of comparing the two years, as a number of the roads reported for 1876 under this head have during 1877 moved on to sale. But during the past year proceedings have been commenced against 44 roads, with a mileage of over 5,500 miles; and it is safe to estimate that as a result of the two years’ work at least 100 roads are soon to be sold, with an aggregate mileage of some 12,000 miles and representing something like $500,000,000. This fearful array does not by any means include all the roads already doomed to foreclosure; but still when these have passed through the ordeal and, like their predecessors, started anew on the basis of real values, the awful era of foreclosures, it is safe to say, will be practically over, and capital, even though invested in railways, will again receive some return.”—The True Citizen.