Western Reserve chronicle and weekly transcript of the times. [volume] (Warren, Ohio) 1854-1855, 1855-01-03

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Total expenses, sI37.OG4 IS. Net revenue.
Sl44.6}j Il. This result would be materially
varied by the running of one additional coal train,
the expense of which would be $S3 a day. while
il would earn $3.50, thus adding to the net reye-
nue. $5j,iOl. and making the total profits $780,
U3G Il, equal to Ia per cert. on the cost OF the
road These two trains, carrying each 200 tons
of coal daily, would deliver at Cleveland, an az
gregate of only 12j,2OO tons a year, an amount far
within the demand, and certainly very far short of
the capacity of the road to transport.
The above estimates of the cost of working the
road are based upon certain and reliable data the
results of long experience, varied only IN their APP
plicatiOn, bv the character of the road in grades
and curves, the distance of transport, the price Of
fuel, Sc, and the amount of business done upon
the road. Upon this last particular everything de-
pends. Between a minimum amount which would
not pay the expenses Of operating. and the maxi
mum which is limited by the capacity of the road.
there is a wide range for profit or loss. In a mis-
cellaneous freight and passenger business. there
NAV be occasionally trains run which do not pay
expenses. The actual running expenses of a
loaded train are very little more than those of an
empty one. and the wear and tear OF the road, and
the proportional expense of maintenance of way
due to each train. is nearly the same. The road
must be kept up in as good condition for a light as
for 4 heavy train, and the great weight of the mo
tive power operates as injuriOuSly upon the track
without a load as with it. But III the transporta-
ton of coal. there can be no reason why every
train should not paw a certain profit. The amount
carried may be so small that the aecruing profits
will only paw Il very small interest, if any, ON the
capital invested. But it is absolutely certain that
any railroad, whether n single or double track.
that can find a market for all the coal 1t can carry,
must Weld full dividends on its cost.
Suppose. for illustration, a road so miles long,
costing S2,GOD,OO0. the annual expense of main-
tanning which, in perfect order, when worked to
its full capacity, amounts to sl'otO a mile but
which can be kept in merely u safe condition for
the transit of the minimum of Tonnage, for say 500
u mile. This will amount in the one case to $780,
600, and in the other to $4,000 a year. This ex-
pense of $4,000 being borne by 100000 tons of
coal. Each ton carried is chargeable with only
cents for its share of this item Of the cost Of trans
portation. On the other hand, say 10000 tons Is
chargeable with 100000 or 50 cents a ton. The.
running expenses as estimated above, average
sixtv-seven one-hundredths of a cent per ton per
mile. or for 50 miles they amount to 534 cents
Adding 10 this the charge for maintenance of road,
and we have 6l4 cents in one ease, and 1891 cents
in the other. as The actual cost of transportation.
And at 4 uniform charge Of Il cents 4 ton a mile,
or 81 20 a ton for so miles. the profits in one case
would be 5S4 cents, yielding sjSj,OOO net revenue,
being equivalent to 29{ per cent. on the capital of
S2.OOlO0O, while in the other case the receipts
would not cover expenses. In this calculation the
road is supposed to cost $4,000 a mile. Ii it cost
100000 per mile with the same business, 1t would
paw about Z per cent. The Reading Rail Road
which cost 5000, 900 a mile. with a double track.
carries annually nearly 2.OOO,OOO tons OF coal and
paws s per cent. on its cost.
What then is the minimum amount of coal that
must be transported over the Mahoning Rail Road
TO guarantee against loss. or to secure n return of
6 rer cent on its cost? The gross receipts of the
passenger and mixed trains are set down above At
5000 a day or SlS7.S 800 Il year. The annual ex-
pense of working these trains is sj34Sj, and of
maintenance of road s ) $500; total, Sl07, 0S5Snet
urO6ts, sS0.7l5. The interest on the whole cost,
sI,5s3.63S at 8 per cent, amounts to s95!Ols-2S.
The difference. equalto Sl4303 would come from
the transportation of coal
As the whole cost of maintaining the road is
provided for, or charged to the passenger and
freight business, we have only, for our present
purpose, to consider the actual running expenses
as the whole cost of transportation. These amount
TO Is cents 4 ton from Youngstown TO Cleveland.
Assuming them ut 80 cents, and the rate charged as
SI.jO, we have 81 profit on each ton. which will
amount TO SI4.3tE} on 1895 tons a year.. or On'y4 -
tons 4 day. ItfOllovs that whenever the amount OF
coal transported over your road exceeds 1900 tons
a wear, it must, with the other business assumed
above, paw more than 6 per cent. on its cost II
NAV safely be predicted. in view of the fact thatthe
coal operators are all waiting anxiOusly for the
completion of the railroad, and for easier access
are constructing, or have projected branch roads
from the mines to meet it, that it can never fall
below. but viii many fold exceed this amount
BUSINESS FROM CLEVELAND TO NEWCASTLE.
Ii the prospect De so HdtterlnG. looking OnlV 10
the local business of the road in It's unfinished state,
il needs no demonstration to prove that when I'm
iShed to Newcastle, where, in addition to the extern
siye iron interests there to be accommodated, it will
receive tribute from other eOalfelds now being de-
veloped. and where. by its connection with the y.
W. r.. r.. and with Pittsburgh, it will secure =
large amount Of through business, it will prove a
most lucrative investment.
To those who are unacquainted with the country
trayersed by this road. a full statement of its BUSH
ness, resources and prospects, would seem to be
greatly exaggerated. To do 1t full justice would
extend this report to too great length, and | can
only glance at its leading features, coal and iron !
COAL-The Goals Of this region from their first
into market, have been ii such steady
demand that it has been difficult to keep up the
The growth OF this trade has scarcely its 5
parallel in that of the anthracite Soal trade of !
PENNSYLVANIA. which from similar begin I
niugs has gradually developed itself. until il now !
amounts 10 more than 100000 of tons annually.
The amount of coal sent from the MahOning Val
Cleveland, increased from 26.Sjl tons in 1919.
to 1850 tons in 1888. The cost of transportation
md Handling at Cleveland. an average distance OF |
loo miles by canal. has ranged from 40 to lTO !
cents, and during the past season from lJOto 100 =
rents per ton, and it will command in market at il
from 65 cents to 81 Il ton more than any s
other coal. The average distance of transport by 1
railroad would be about 6J miles. and there is no n
doubt that in view of the announces and delays of :,
anal navigation. the great bulk, if not every ton Of =
shipped would prefer the railroad to the canal a
IT the same cost. In the estimate above. l have
4 chargeofsI ,5Oa ton,whieh is much below K
he average cost on the canal. There can, how
,yer. be no competition between them. both being n
by the same interest, and both will be
employed. 1t Is worthy Of remark that III i
very instance where a railroad and a canal Tav- -
rise the same district. or connect the same terminl, I
hey have invariably operated to their mutual |
Ieneit. te
IEoS-The development Of the iron trade in this 10
Taney is equally remarkable and encouraging The CT
Of coal and its superior quality, possessing VI
,rouerties which peculiarly adapt it to the manufacture W
4 iron. has mainly contributed to this result In io-s 81
was but one blast furnace in the Mahonins Val er
ey there are now : furnaces. Ohree of which have T
zen erected within three years. ard four large roll ,
ne mills, one Of which is engaged in the manufacture |
{ iron rails In addition 10 the above, there arc a !
OF other furnaces, not Immediately on the line -
( the road, but which win be dependent upon it, and
rihutary to its trade. For the aggregate product Of
works, exclusive OF the last mentioned, amount o.
Of metal and manufactured iron, to more than 100 i
daily, the canal affords hut an imperfect outlet. 1
iron ore these furnaces consume daily about 80 :
Bns. During the season OF navigation in lS52, 5000 g
OF Lake Champaign Ve were transported over the u
anal from CIeyeLind to the Mahouirg Valley. The =
as season, according to the Collectors returns, the !
anne item amounted to over $1,000 tons, or 80 tons a j
for 80 days, showing an increase of more than a
DO per cent. over the year le5e- Upol the opening Of Bi
he Saut 81. Mary Canal, which Is about finished. and
hich will he completed and opened for business early -
ext spring, more than half the demand would be sup i
lied fron Lake Superior, with the facilities Of trans II
ort which our road would afford
Here then, We have a business already existing in -
pal. iron ore, and the product Of the furnace and the II
bling mill of 500 tons 4 day. or 2tO.OOO tons 4 year
hat it VIII amount to when it shall enjoy the facili- -
e. Of a first class railroad, / make no estimate, leav- 4
Y il to the parties interested to make their own cal Il
nations. -
l have said nothing % other sources Of business OF -
miscellaneous kini. and Of agricultural products. =
he whole route lies through a rich and productive /
,untry, covered with hi rllv cr;; waited farms, and in
.hited by an iudus,r!1r-. Ger RISING and intelligent :
,~puation. The amount set down in the estimate be-
is, l am confident below the mark. L
ESTIMATE -
at s. $50 sss5 co I
al. 200 tons, at - $50 90 =
- 9D ~ - 81 no ca ~