Loudon free press. (Loudon, Tenn.) 1852-1855, 1853-11-25

1850 l56,9l0
The cost and nett profits of these roads, for
1853, are expressed in the following table:
Cost. Nett profits
Little Mama Railroad. 81, O,O0O-I3 p cent
Ohio and Pennsylvania. 4.200 100 8 >,
Gin, Ham, and Dayton. 2,60O, ,000-- s ;,
Pennsylvania Central. ..l3, 800 O0O- d,
Michigan S0uthern....... 5,l28, ,000-12 :,
Milwaukee & Mississippi. --l0 ;,
Cleveland and Columbus. 3,435, ,000-16 ;,
The entire cost of the above ,0S0 miles Of
Western railways, is So, ,273, 600; and the nett
profits Of traffic in 1853, arc 10 per cent. This
includes, be it observed, the expensive line Of
the Pennsylvania Central. The cost per mile,
$30,000; but, excluding the line over the noun
tains, Is much less.
Now, mark another fact, that lhe increase Of
t}a6ic on WeSte179 ra2'cgys, in single year,
has been, at least, ttiFty-tbree per cent? We
may grant as much reduction On this per cent.
of increase, as any croaker may demand-and
yet it is plain and palpabIe fact, that in ten
years time, the traffic on railways west of the
mountains, must, at least treble. Some addi-
tonal cost of double track, they must encoun-
ter; but we venture the assertion in advance
that in ten years time-every good line of Wes-
tern railway viii pay an average Of 10 per cent,
and while those on the Atlantic coast will not
average over 6 per cent. In one word, the in
vestments in Western railway lines, on the
main routes (of course we do not mean mere
speculative routes are far the best investments
to be made, in any kind of stock, aud far pref,
cradle to any in Europe, or in our own Atlantic
will all require double tracks, and this will add
largely to their cost; but so immense is the
Western trade, especially in produce, and so We
ry rapid its increase, that the profits of capital
thus invested will increase, and not diminish
IF then the investments OF capital take another
direction for the present, it will soon resume the
railway channel, for a reason which is lmpera-
tive on all money y-holderS, that it is tie best aad
most secure Investment.
There are now 1900 miles Of railway finished
in Ohio, which have cost about forty millions of
dollars. These roads will pay about .toar mil
lions per annum on the cost of construction
Here, then, is a vast fund for future construc-
ton. The stock Of these railways is mostly
owned at home; but the bonded debt is held
abroad. Now, so far as those bonds bear less
than 10 per cent. interest, land that IS all OF
any consequence the issue Of the bonds is a
nett profit to the stocbholder; he makes the diff
ference. Thus:
f$2,500,O0O Stock.
S2,5OO,O0O Bonds at E cent.
Nett Rcceipts. $40O 900
Interest on Bonds. $l75,OO0
Nine p cent on Stock 900
Thus on good Western railway, the bond
holder will get per cent, and the stakeholder
9 or 10 per cent. The time is near at hand,
when it will all be clear to ali Toneyholders
that it will be much better to hold stock, than
bonds This will produce great effect; for
stock of domestic holders will pass abroad, and
the domestic stock be released for new enterpri-
zes In this way, Ohio, with her immense sur
plus, and the equally great profits Of her works,
will command capital to any reasonable amount
for any reasonable enterprises.