fJDecember I.'ISSS





Record  and   Guide.





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Vol. XLII.





DECEMBER 1, 1888.





No. 1,081





Among the recent developmGiita in Wall sti'eet is the fact that
Jay Gould is getting members of his family into the directories of
all the Southwestern roada. He will be represented in the Atchison
& Sante Fe road and also in the St. Louis & San Fi'ancisco, and
now it is announced that liia eldest son is .to be a director of Rich¬
mond Terminal. Thia means, in time, that all the roads iu the
South and Southwest and extending from the Atlantic to the
Pacific Oceans will be practically under one control. We have fre¬
quently pointed out that this consolidation of interests was some¬
time or other inevitable. A¥hen the practical consohdation is
accomplished it will be as good a thing for the pubhc as for the
security-holders. Railroad history shows tbat when the transporta¬
tion lines unite the pubhc get the benefit of reduced rates and better
accommodations. It is the new lines running short distances which
charge lugh fares and rates. The practical consohdation of the
Richmond Terminal system with the Missouri Pacific and the
Atchison will make the greatest ti-ansportation system in the world
under one management. It will then be in order for the Pennsyl¬
vania Central to unite with the Chicago, Burlington & Quincy, and
perhaps Rock Island too, using the Union and Central Pacifies to get
access to the Pacific coast. Ultimately, of course, the Northwestern
road will also be extended to the Pacific slope, and the Vanderbilts
will control lines reaching from Boston to San Fi-ancisco. Oui's is
certainly a great country for the consolidation and unifying of
railroad interests.





The Wall street bankers, iu their circulars, do not think it possible
that there will be any legislation amending the Interstate Commerce
law during the coming short session of Congress. We venture to
predict, however, that a determined effort will be made to get rid
of the interdiction against pools contained in the present law. An
effort will also be made to modify the long and short liaul clause,
and then it would be well.to have ten days' notice of reduction as
there now is of an advance in rates. Our railroad corporations
represent fully 9,000 miUion of capital. The pressure brought to
bear on the members of the Senate and the House will come from
every influential portion of the country. When we recall how
powerful have been railroad corporations in the several States in
moving legislation we can form some estimate of what all tlie cor¬
porations combined could do in a short session of Congress such as
will sit next month.





Of course we take no stock in the complaint that the Interstate
Commerce law has done the railroad corporations any harm. On
the contrary, we believe that they have been benefited by it. Still
the prohibition of pooling is undoubtediy a defect in the law aud
ought to be modified. Some forty of the largest shippers in New
England were recently asked in what way the Interstate Commerce
law affected them. Twenty-five of the great corporations and
firms could not see that the law made any difference in their busi¬
ness. Thirteen said that they were embarrassed in many ways by
the operation of the law, and some few said they were undoubtedly
beneflted by it. The fact is the depression in the railroad system is
due to overbuilding and to the authority given subordinates to
make rates. Tlie Interstate law will not interfere with the restora¬
tion of rates, and were a method employed that involved responsi¬
bility in the freight departments of several corporations we might
expect a far better condition of things in the railroad systems of
the country.





Mr. Samuel Benner's prediction that 1888 would be a dry year is
not borne out by the facts. This has been a wet year, to the advan¬
tage of our corn, hay and other crops. But the same prophet was
quite correct in looking for higher prices for wheat and other agri¬
cultural productions; while he was equally happy in forecasting
depressions in the stock market. However, he predicted a boom
in business if the Republican National ticket was chosen. It is
true that matters look pretty well in the various departments of
trade, but the stock market has been unduly depressed since the
result of the election became known.   However, the crop year is





young yet, and the corn and cattle roads ought to give a good
account of themselves before the next harvest. Prophecying, how¬
ever, is a very risky business.





The railroad corporations of the Southwest propose to form a
gigantic trust, which will get rid of competition among themselves
and advance rates to a paying figure. This movement is in keeping
with the spirit of the times, for aggregated wealth in all depart¬
ments of industry is endeavoring to get rid of wasteful competition.
There are many and serious difficulties in the way of this combina¬
tion of raCroad interests, but all the signs of the times indicate the
final success of the movement; nor cau there be any reasonable
doubt but that all our transportation Unes wUl in time be managed
under a system wliich will involve a Clearing House, the establish¬
ment of paying rates, and a fan- return to aU who own raUway
securities. Of course, there is danger that, in tune, the business
public may have cause for complaint; but the governmeut, repre¬
senting the community, can be depended upon to regulate the rail¬
way systems of the country and protect the public against abuses
which might arise out of an irresponsible monopoly. It is notice¬
able that the short-sighted newspaper press, which have been so
unwisely denouncing trusts, are forced to admit tbat these raUroad
combinations are not only desirable but inevitable. However, as
tbe election is over, they can afford to talk more sensibly than they
did formerly on this vital matter.





The great sale of the Jones estate caUs attention to the fact that
the auction room of the Real Estate Exchange is too small to accom¬
modate the crowds who wish to attend the disposal of great
realty offerings. A hall double the size of the Liberty street institu¬
tion would be none too large, for as New York and Brooklyn gi-ow
the number of large sales will naturally increase. Then, in time,
our Exchange ought to be the mart for the whole country. There is
no reason why it should not be the headquarters for the sale of
realty located in any parfc of the United States. However, the
present Exchange salesroom might be made more available by the
construction of two or more galleries, occupying the present bare
waUs of the room. Properly constructed the tiers would help cure
the acoustic defects of the haU. These balconies also might add to
the income of the Exchange, as they would supply desk facihtiesfor
traders who did not care to Mre an expensive room. Tbe exceUent
prices obtained in this and all other executors' and petition sales,
points a moral which auctioneers and dealers should take to heart.
The average investor gives the best prices at such sales. He knows
there is no doubt about them, but he will not bid on ordinary
sales, for he is not sure that the offering is bona-flde. It is within
the power of the auctioneers and their customers to get as good
prices foi' ordinary sales as for those offered under the order of a
Court. The Jones sale brought in nearly $2,000,000; but the return
to the Exchange was only $360. Tiiis is a preposterously smaU sum-.
It ought to have benefited that institution by at least $1,000. The
buyers who would pay the difference would consider it a trifle. It
is absurd to make the same charges aud conduct sales in thfe same
way as when New York was a small town.





The decision of the Court of Appeals of tbis State, pronouncing
unconstitutional the legislation against the Broadway Raih'oad
franchise, is a commentary upon newspaper sensationalism which
the public would do well to keep io mind. The clamor was a
senseless one from start to finish; and Com-ts aud legislators were
forced by the newspapers to act in an entirely Ulegitimate manner.
Of course the whole " boodle " business was a bad one, and cannot
be defended; but the real defect was in om- legal machinery. We
ought to have had a railroad on Broadway thirty years ago ; but
the only way it could be brought about was by bribing Aldermen
and Com-ts. Tliis was done by the late JaUe Sharp and his asso¬
ciates ; but they were not to blame for a condition of things which
liad existed for years. The indignation should have been spent
upon the abominable maeliinery for carrying out pubhc improve¬
ments as weU as upon the rascally Aldermen and their moneyed
tempters. In other words, the community itself was more to blame
than the people who either bought or sold the franchise for the
Broadway Railroad. But what a deafening clamor the newspapers
raised, yet, in view of recent Com-t decisions, how unwise was their
action, as well as that of the Courts and legislators they influenced.





Oue cm-ious result of the Congressional elections is tbe elimina¬
tion of the sympathizers with the labor movement from the next
House. James B. Weaver, of Iowa, who once received about
;-150,000 votes on the Greenback ticket for President lias been elected
to stay at home. He is really an able man, a good parlia-mentarian,
and was bitterly opposed to laud gi-ant jobs. It was the corpora¬
tions which doubtless defeated him. John J. O'Neil, of St. Louis,
an ardent representative of the laboring classes, has also been left
without a seat. Mr. Hem-y Bacon, of Newburgh, the violent
dfenouncer of ti-usts, was also defeated.   Rev. Luther McKinney, of