Show THE THE DEBTS OF RAILROADS A correspondent takes exception to our assertion assertion assertion asser asser- tion that no straw railroad company should be permitted permitted permitted per per- to incorporate and offer its bonds for sale and asks what difference should be made between a t railroad and a mining company comp riy I There is all the difference in the world One is i The rhe value public the other a private corporation p pt- pt the t e latter depends as every one knows upon I wh whether ther a prospect will vill develop into a mine or on n exploration l peter P t r out and anyone one one buying shares in it does so on that c expectation They rhey I gamble th that t it will prove to be a mine tine But a l railroad railroad rail rail- ailo ail ail- road o d corporation has behind it the carrying traffic tram long along the line Suppose a company of ten individuals individuals nals who have scarcely the money to pay for theiu the iu incorporation papers launch a for the railroad between b be he- of building and operating a purpose t tween two specified points say miles apart i I THis corporation gives them the right to issue 30 I p per r mile in stocks and per mile in ill I bonds They riley sell he bonds at par the they build and equip the r road ad for per mile milc When completed com corn pl ted they find that they have not been out a cent b but t rather rathe have not only built the road but that they have z i profit from the sale of the bonds which gives them each more each more than they ever d dreamed ea ed of possessing They own the road vesIcles and nd expect to IT make ke the people pay all the opera opera- operating ing rg expenses of the tile road for f. all the repairs aud and interest on not only the per mile bonds b but t on the tile per mile of pf capital stock This is what thc the people p ople of this country countr have had to stand for from the first but there is something something some some- thing more Such companies never intend to redeem redeem re re- re deem their bonds bond if they can help it The bonds drift away and arc are finally bought in Europe The h interest r s oh on s eh b is generally high Jugli 1 5 and 6 per p r cent Now at t 5 p per ont the interest on these bonds is per pcr annum On 1000 m miles les at atthe atthe atthe the the same tate rate the interest would be Now there are miles miles of railroad in this cou country try and th they y nearl nearly all ail have out bonds of from to per mile Suppose they average average average aver aver- age per miI and that the interest averages 5 Q per pr cent Is it not clear cleat that from somewhere must be raised Cannot any ny one see what a drain that must b be on OU the country if the interest goes goes abroad More lol than the gold and silver r and lead crop rop amidst almost lm t equal to the wheat or corn or cotton crop Is it not time that such business should under tinder the law be lie made impossible 1 1 |