The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-19

cia returns Of the three companies for the capital
debt and grose income, and there We have dropped
them. The results are reached by process Of our
owr. The per cent gross income on est can easily
be figured up from oficis. statements, but in
arriving ct the net income on cost We have allowed
sixty per cent for running expenses, believing that
such rate Ia within, rather than over, the actual
current operating expenditures. The net income
Of the New York Central on this calculation, Is 81
per cert on thecost The debt of the Central Com
raDy bears per cent interest," and being about half
much as the stock, leaves for the stock barely
per cent The net income Of the Eie Is st per cent
on the cost. The debt Of the Erie company bears
per cent and being about three times as the
capital, it abscrbs nearly the whole Of the net cam
Dgs, and leaves but third Of per cent for the
stock. The net income Of the Reading is 81 per
cent on the cost. The debt Of tho Reading company
bears per cent interest, which Is "a per cent below
the net income on cost The debt being Sill 100000
the ~ per cent saved on that amount Ia 30 much
added to the 81 per cent 70 60 to the stock,
which, on $7.500,000, increases the per
cent to l22. It would be we'll enough for
these interested to lcok at at these results which
cannot be contIoverted, and compare the mar.
ket value Of the stocks representing the different
companies. Fer the purpose Of enabling the public
to do and to see tb comparative position Of each
we annex . table giving the necessary points,
RAILROAD REvKsuE-PrR CENT Gross AND NET INCOME &c.
G ass. a. o. e S On On M IN M,s e.
NYcen RR. 10 4 per ct. 81 perct sper Ct esx
Reading Ga RR .ai dS S SS la S So 49, sss
The comparative value Of these stocksis in fac
very different from that presented in the figures Of
market value. If New York Central Ia worth 933
per cent, with netincome on capital Of per cent,
it can easily be figured out what Reading is worth
with net income on capital Of l22 per cent-more
than double that Of the Central. The difference does
not end here About one half of the business OF the
New York Central road 10 affected more or less by
competition and the charges for transportation are
therefore reduced to the lowest point. It s resric
by legislative acts on charges for its local business
The Reading Railroad has perfect monopoly Of
every dollar OF its traffic. No other road In the couu
try has it to the same extent. 1t cannot, therefore,
be affected by any outside pressure, by any com
petisor route. These things should be weighed and
wen considered by capitalists, previous to embark
ing in aDy investment, or In relation 30 any they
may now have in railroad stocks The dates we have
gwen above 10 the suresr and safest guide to so by.
The New York State Engineer, in his railroad re.
port for 1854 says that the average current operat
ing expenses Of all the roads In the STATE was 81
per cent. We have adopted 60 per cenias the stan.
dard, and believe thst both the Central and Erie
exceed that rate. The high grades aud curves Of
the Erie and Central with the speed required t,
keep up with rival routes, are very expensive. Toe
Reading Company pays no regard TO high speed,
and its grade being all in favor Of It's feighted cars
one engine can do the work Of four on the Eie. at
e cost Our estimate Of sixty mar cent for current
operating expenses OIL the Resding, may, therefore,
be excessive. The company reports the cost Of ope
rating at 47a per cent AT CO culation Of ff.y per
cent, the net income capital would bel7 per cent
instead Of 122 per cent, shown in the above table
The receipts Of the Terra Haute and indianapolis
road for the year ending 3lst December, 1854