Indiana American. [volume] (Brookville, Ind.) 1833-1861, 1854-02-03


same quantity Of freight for railroad
transportation; nor does the East in
that respect, at all compare with the
West. The great bulk of articles
transported upon our roads is grain,
cotton, tobacco, pork, coal, iron. live
stock, DC, &C., while the more deli
cate and finer fabrics are scarcely
manufactured at all in our midst; and
in very many instances, cotton and to-
bacco especially, this bulk freight is OF
necessity compelled TO lengthy
transportation in search of amarket.
Thus, rs we have before remarked, the
building Of one trunk line, entails the
necessity Of other main lines as well as
Of branches innumerablc, to accommo-
date the rapidly extending transporta-
ton business of the country.
As facts and figures present unan-
swerable arguments, we shall call them
to our aid in demonstrating that, not
only are railroads necessary, but that,
as class, they are the best and most
uniformly dividend-paying investment
that can be made.
The facts and figures which we pro-
pose to adduce, are the length, cost
and earnings of some twenty of cur
railroads, Eastern and Western, select
ed at hazard. The earnings are for
the months Of October, in 1859, and
1853, being the latest month of '53 of
which VIC have anything like full re-
port. Thus, while judging Of the past
from these evidences we may readily
form opinionsof the future, which can
not but approximate, if it do not ex-
actly hit the truth.
From this table we deduce the fol-
lowing elements, viz:
The 90 roads named, cost an average
of $4S.985 permile.
The ten Eastern roads cost an average
of $50, ,733 per mile.
The ten Western roads cost an average
of S25, 49S per mile.
The ten Eastern roads, earned in Oc-
tober, 1852, l.02 per cent of their
cost, or at the rate of 1924 per cent.
per annum.
While in 1853, in the same month,
these same roads earned 1.O8 per
cent oftheir cost, or 1896 per cent.
per annum.
The ten Western roads earned in Oc-
tober, 1852, LII per cent. of their
cost or at the rate of 21.24 per cent.
per annum, and in 1853, inthe same
month, their receipts were 2.37
per cent of their cost. or 28.44 per
cent. per annum.
The increase upon the ten Eastern
roads has been at the rate of Sd OF
per cent. for the month, or Q per cent
per annum; while upon the ten Wes-
tern roads, the increase of the month
has been at the rate of 7.20 per cent.
or 86.4o per cent. per annum; from
which we gather that while the re-
ceipts upon the Eastern. roads have in
creased at the rate Of about lO per
cent. for the last year, those upon our
Western roads haze increased at TIC
rate Of nearly 100 per cent.
Great as this increase may seem, we
are satisfied that it is only a COM
mencement Of the immense business to
be done by means Of railroads; and if
We are questioned as to where this
business is to be found, whence it
is to come? we reply the railroads will
create If for themselves. We have not
space at this time to elaborate our
views and ideas, and so referour read
ers to the several articles upon this
branch Of the subject which have al
ready appearedIn ourcolumns from the
pen Of our Senior, while we proceed
with our subject of the Western Rail
roads as an investment.
We have now shown the gross earn
.ings Of Western roads for the year l8-
so, TO have been at the rate of 21.2f
per cent. of their cost. II from this
we deduct running expenses &c, at
the rate Of so per cent, large allow
ance underany circumstances, we have
the net annual earnings at the rate OF
1902 per cent. and this while several
Of the roads were Incomplete; but in
1853 the rate was 28.44 per cent.
gross, or l4.22 per cent. net; and all
this while the railroad system is yet in
its infancy. Had we been able To have
collected the earnings of these same
roads for the month of December, in
stead of October, the result would have
been much more surprising.
But as tits, it is sufficient for our
purpose, and we feel that the facts and
figures fully bear us out in our asser-
ton, that few or no undertakings pre-
sent a better prospect for profitable
and eertein Investment than Western
railroads, as n class.