The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-10-01

we state as we do now deliberately and without the fear
Of that The cost Of such renewaove and
above repairs proper-on road like the New York Cen
trial amounts to the plump of $500 per mile per an
mum. We assert this, repeat deliberately knowing
just exactly what II and what 1t amounts to- and
prepared to prove that II Is rather under than over
the mark. The Boston Tacelier Of the oath inst con-
tans the following article written evidently BY person
who has carefully and scientifically examined the subject
Is important to all parties interested in railroads. and
| particularly apropos at this moment;--
RAnRoAD DEPRECIATION
depreciation Is an item OF annual expense although
the charge may be- and too generally Is large degree
omitted II IL not contended that IL altogether dsre
garded but that the depreciation Of expensive items Of
way and equipment, which gradually deterorate-which
the worn out" condition. without provision TOR renewal
This proposition applies, particularly to rails bridges
cross.iies and motive power They repaired from
time 10 time but period when they are
gone for patchingwhen they must be replaced by new
article. is the neglect to provide this nal and
pendture, in considerable amount that constitutes
mainly the existing difficulties of that portion Of our
far at least they are created by an unexpectedly
enhanced operating expenditure.
The effect of this neglect has been twofold Renewals
in large amount are demanded when the treasury
not respond because earnings have been fully divided
after lying ordinary expenses; and tariffs have been
any estimate OF future demands upon earnings for
newais.
We propose to examine the subject with A view to
determine the amount due to depreciation over and
above REPAIRS The beneficial effect Of repairs besides
keeping way and equipment in safe running order, to
extend their period OF useful servcetheir durability
This effect will estimate In a life service extended
BY judcous repairs, beyond the term due to dura
bility under given action. The parts have named
subject to periodical renewal at intervals time
more or less long, are rails cross ties bridges and equip
piled to themwe shall assign liberal term Of sase and
efficient service aud apply our estimates ~ the Western
Railroad In Massachuset g.
The depreciation Of rails Ia duo to the weight borne
upon the having regard to velocity As the ends Of
tie rails universally fail FIRST it is reasonable to measure
the depreciation by weight borne into velocity.
and the traffic most important roads in Massach
sets does not vary sufficiently to render the average
aud cross ties IL also subject to general law sufficiently
accurate for the class OF roads to which we aude The
same may be said strictly Of equipment The aver
age serviceabe of rails does not twelve years
Once in every twelve years upon average they re.
quire renewal They depceciate La per per an
extent during the first few years but the aggregate de-
probation we have estimated will not fail disclose It.
self at the end of the period named Welding will make
the rails safe and the track surface perfect the
rail will fail entirely end middle in average of
twelve The cost per ton Of rolling exclusive Of
nun per ton Il then 50 08.
Crossties of chestnut oak do not average eight
they cost each say thirtysx cents Their depreciation
is then per ahnum per tie ~ cents.
Truss bridges, single track will average twenty dollars
per running foot They be estimated safe for twenty
years, when well constructed and protected from the
weather Their depreciation then is dollar per foot
Equipment, after twelve years. service gets very
rickety It becomes expensive to keep up. The ocomo
ves tail, not only In amount Of work due their power
but become unreliable. 1t fair Judgment Tint equip
ment depreciaes at least eight per cent per its
cost.
Applying the foregoing estimates to the Western Rail-
road lind that s annual depreciation account should
be charged with 1924, 7se 2s, as follows
Rails, l5, $50 tons, at 50 OBSERVATION-DISCLOSURES. s32 3a4 90
Ifossties, e,2J0 at u cents l30l5 as
Bridges ., 100 teet, at $i.............. 8l00 90
Equipment, ss10, 5s7 81, at per cent?. 1887 o8
Total. SEA 7se IS
say confidently should be set aside of earnings
nualy, by the Western Railroad, a renewal fund If ii
be expected to maintain the property without
The report of the Western Railroad Company to the
stockholders year ending November 80 1851, admits
expenditure dining the year Of $40 000-ie tion
bad crisisfor renewals nearly seven per cent
on its stock investment They drew upon the surpusn
Tor sls6 600 OF this anounta surplus which venture
70 say was not represented by one dollar OF cash The
company made good It's line Of net earnings by resort
TO this questionable surplus constituted Of as,hmatic
tops and whistles finally to be merged In capital,
a bond issue
It may be objected by practical railroad men that ",
have assigned too liberal durability TO material, but
must be recollcced that condition estimate upon
faithful and judicous system of repairs made the
moment they needed and therefore economical
NOT upon that system ~ management which yields
the apprehension Of being charged with and
waste, and permits unchecked destruction
western railroad Is but type OF all roads We de-
sire 10 awaken public attention seriously to facts import
ant 10 great public interest, In which all have
thing at stakewhch has become essential element
the progress Of socieyto the preservation OF which all
must CONFERENCE.-The manager the proprietor and the
customer-the whole public.
The Western (Massachuscts) Railroad Is run with less
velocity and less amount Of weight than the New York
Central and the above writer up the cost Of renewal
on that read At ss03 per mile per The
estimate applied to the New York Central would figure
about $500 900 per annum 900 in twelve years
II may be set down Dsolute certainya result
TO follow the night the daythat If the New York
Central Company 20 dividing the whole Of theif
ngs without establishing this Renewal Fund they
often every six years round make up by
issue Of 81 900 900 Of bonds stock. Ear better
would Il be for them far better would II be for
interested in that great work, the managers to
come out boldly, and honestly up the truth. This
Renewal Fund IL a necessity which they know fan
well. Time win show H. and time viii bring down up
their heads loud and deep, 4 they fail 10
acknowledge II, and provide for II now while they
What will be the effect Of the next issue Of stock
or bondsf We had almost said that such blow would
the securities Of the company TO waste paper That
II would depreciac them immensely below their intrinsic
value causing dIs'rust, alarm, sacrifice aud ruin 10
thousands did the last nq one doubt The capital
OF the New York Central Railroad Company is in all
science should say, large enough Thirty eight mil
lions 1--WE hundred thousand dollars 1888 500 00o) Il
pretty round sum. To comprehend approach a rea-
liking Of it II l. only necessary TO cipher how
many years II would take at the rate Of dollaya
cond 10 count t. We believe the stockholders do not
generally anticipate further increase u capital and We
hope for their sake It mny not be- We tina, the po
icy Of The management may he changed let them have
the moral courage TO face the music. Lot them aside
the $500 600 per annum, which honestly belongs 10 the
renewal Fund which Is part q net earnings aud then
divide the balance Btter TO pay six per cent or even
i,e than make another issue 81 bonds