336 



FINANCIAL REVIEW OF 1883. 



The following is a list of some of the spec- 

 ulative stocks, with the prices which they 

 brought at some time during 1882, and those 

 to which they fell in December, 1883: 



* Ex-dividend. 



Railroads. Kailroad traffic and earnings in 

 1883 exceeded those of any previous year. 

 Tonnage was heavy, from the large crops of 

 1882, an active movement of merchandise of 

 all kinds, an exceptionally large coal - traffic, 

 and the early movement of the crops of 1883. 

 Immigration and the settlement of new lands 

 contributed considerably to the traffic. Pas- 

 senger business was also heavy. The many 

 new lines recently opened made the competi- 

 tion severe, and toward the end of 1883 signs 

 of new ruptures in the pools and combinations 

 disclosed the extent to which roads had been 

 constructed beyond immediate requirements, 

 and consequently depressed the values of 

 stocks. The stocks of railroads which were 

 subjected most to new competition suffered 



most in the general decline. The New York 

 Central was threatened by the new West 

 Shore road. The Union Pacific was affected by 

 the opening of the Denver and Rio Grande to 

 Salt Lake City, the Central Pacific by the com- 

 pletion of the Southern Pacific, and by the ap- 

 proaching completion of the Northern Pacific. 

 The rivalry between the Pennsylvania and 

 the Philadelphia and Reading led to sales of 

 stock; and lines like the Erie and St. Paul, 

 which were subjected to the brunt of competi- 

 tion or undermined by tariff wars, were the 

 easy prey of the bears. 



The completion of the " Nickel-Plate " rail- 

 road and the opening of the Chicago and At- 

 lantic route by the Erie, made six through 

 routes to contend for the Chicago traffic in- 

 stead of four. The Pool Commissioner ad- 

 justed the proportions of the roads accord- 

 ingly, but rumors and accusations of rate- cut- 

 ting and evasions were rife during the latter 

 half of the year. The Delaware, Lackawanna, 

 and Western was subjected to the severest pen- 

 alty in the power of the commissioner, viz. : 

 the refusal of connecting lines to forward its 

 freight except at local rates, and some of the 

 trunk-line managers appealed from the award 

 of percentages on east-bound business. 



In November a conflict broke out in the 

 principal Western pooling association. The 

 Chicago, Milwaukee, and St. Paul announced 

 its intention of withdrawing from the Iowa 

 pool. The Northwestern, the Rock Island, and 

 the Burlington and Quincy roads showed dissat- 

 isfaction with the arrangements. An agree- 

 ment was formed between the St. Paul, Rock 

 Island, and Union Pacific, excluding the North- 

 western and Chicago, Burlington, and Quincy. 



The gross earnings of the four great trunk 

 lines leading into New York in the four years 

 ending with 1883. a period marked by one 

 deficient harvest, increased competition of the 

 water-route from the abolition of tolls on the 

 Erie canal, a protracted and bitter war of 

 rates, and a progressive depression of industry, 

 nevertheless show an increase from $91,750,- 

 000 dollars to $127,375,000, or 40 per cent. 

 Net earnings during the same period increased 

 from $37,000,000 to $48,000,000 dollars, but 

 since the first augmentation of traffic in 

 1879-'80, when wages and materials were 

 still low, the increase in operating expenses 

 has kept pace with the growth of the business. 

 The following statement gives the reported re- 

 ceipts and profits of these arterial lines: 



