The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-06-23

I'D the income Of the Baltimore and Ohio for eight
months Of the year II will b. by the above state
ment, tint the Erie Railroad which is only twenty
miles longer than the Baltimore and Ohio four
millions Of dollars while the gross Of the
former this year will not amount to fy per Of
the latter With these things In view the great diff
ference in the market value of the stocks hardly
be accounted for. 1t is the opinion Of many inti-
mstely acquainted with the section of country
through which the Erie Railroad passes the facilities
Of the company for doing business, and the sys-
tenn Of management. that the earnings this year will
fall short of the named In the above compa-
ratve statement The gross earnings Of our rail-
roads calculated to deceive stock holders very
much, and the returns Of receipts which from time
to time made give those interested very vague idea
Of the profits When is considered that out of every
three dollars earned. nearly tive required to pay
running expenses and repairs, and the balance re-
quired to pay the interest indebtodr there is
very little prospect Of the stock holders getting
dividends unless loans made to pay
them, and the construction account largely in
creased. Such state Of things cannot last, and
one Of these days shall have expose similar
to that made of the English companies, managed
by Hudson, the railway king Of Great Britain.
The stockholders In the companies managed by that
Individual time in the receipt of large
dividends and the stock consequently commanded
high prices In the market until IL discovered that
of the large dividends paid out of the earn
ings ofthe road but from the capital ITSELF aud charged
to construction account There railroad companies
in this State doing the thing and to such
ruinous extent the Erie Railroad Company There
be end to the folly Of paying interest on
the stock of railroad when it comes bodily out of the
capital and the stockholders will find that this COM
pop ling of interest is rapidly placing it out of the
power of the enough pay dividends
their costs. Full million of dollars Of
the immense of the part Of the Erie
Railroad has been paid in interest and the interest
its debt and stock for the year lS49 will full
one hundred thousand dollars more than the total
gross earnings of the company from its business for
the year (1849 being deficiency of that and
the expenses of the company for running the road and
repairs In other words the expenditures of the
psny this year WILL tho closest Gale ulation amount
to than FIVE hundred thousand dollars and
above its earnings This amsant will be added to the
cost of the work. without adding rod to its length
and in this way, if the company persist in borrowing
money in the face of its immense debt to pay the in
terest its stock the of the road will reach such
an overwhelming that its completion win be
utterly out of the question.
From the reports Of the Auditor Of the State
of Ohio learn that the entire length of the various
canals and slackwater navigation Improvement made
by tho State since 1925, s2l miles ut cost Of $751;
$50 900 CT. In addition to these improvements, the
State is also the of the Western Reserve and
Maumee road extending from Perrysburgh to Lower
Sandusky distance of 81 miles and costing in its
structon $3.50 1874 o. which the receipts for tolls
during the past year Ss.54s S5 To this add
the stock held by the State in thirty turnpike railroad
and companies in Ohio which amounts to So $751;
ITO s-the dividends whichfor the past fiscal year.
tn Thare in
miles of railroad in state Of completion and 1853 miles
in progress. The roads completed, the number Of
miles and the amount of capital, as can be
ascertained, as follows