The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-01-24
T0JoHN w GARRETT, Esq,
President Of the
Baltimore and Ohio

President Of the
Baltimore and Ohio
Railroad Company.
SIR:-In the contrasts which I have heretofore
presented, between the condition of your Company
and that Of the New York and Erie, compelled
insist, in accordance with the official reports
of both Companies, that the gross earnings OF the
latter were, by a very material percentage greater
in proportion to the length of road than yours.
This fact however, may well be regarded of but little
consequence, turn out upon pushing the enquiry fu
ther that notwithstanding the disparity such is the ad
dress and economy with which the affairs of your Com
pany managed that the amount of the receipts
does not materially affect the net gains The Erie road
earned gross of 4S2 49 in the year ending
Sept 80 1852 But its expenses of transportation
heavy that its net earnings only 81 1922 the
ratio of expenses receipts being upwards of &C cent
Your Company, on the other hand, upon gross re-
from the main stem Of So 6lS6lS earned the net
sum Of 81 1888 $40, your working expenses being only
40 5o0o per cent OF the gross receipts men we c4meo
consider that the Erie road of the best most substan
with grade upon exceeding sixty feet the mile
and with every possible advantage over yours except in
the item of fuel cannot but be filled with admiration
the superior management which enables you to work
road at twenty cent less upon the gross re-
cepts
But it is by comparison with the Erie road alone
that the brilliant results of your economy most sig
nally manifested. The Pennsylvania Railroad is your
nearest and most dreaded rival 1t in nearly the
same latitude 1t stretches yours does from the At
lantic to the Ohio 1t is comparatively straight road,
with grades infinitely easier and curvaures far less try
ing upon machinery than yours 1t is in the highest
credit 1t makes regular dividends tits in complete re-
pair In short it has possible advantage for work
may be supposed able to work. In 1852 this road
ear t 800 d9i SS9
Leaving net receipts..... .............. $2l633S2
The per centage for working this admirably equipped
and managed road SIS q 100.
These comparisons may well excite wonder, and
awake the jealousy of Northern neighbors and rivals
Nan indeed must their competition with us turn out,
in the end it, notwithstanding the neriority of our in
come abridge expenses at pleasure and pre-
sent at the end of each year the gratifying
whether
always overlooking.
But it is a dscouraging thing, ALL to too GU
rousy into the details out of which these savings have
grown Few people take the trouble to examine these
ports of Master of Transportation Master of Road &C.
and those who do generally retire, after brief glance
with the impression that the whole thing is too absruse
for their comprehension The comparisons are tedious
and uninvting-the result appears to be atterng and
there is always promise that next year it will be even
better
Let us, however, look for moment into of the
particulars Of that immense saving of $S4620l which
accomplished by you last year in the working Of the
in the repairs of railway In this single expenditure
you effected by economy, saving of $4S2936, and
you distinctly give to understand that still further
ducons are to be expected from the Improvements which
you have inaugurdted And, truly, when look into
the details of this saving and compare your admnstra
ton of 1859 with administration of 1885, find
that you have improved upon yourself to degree which
challenges unmingled admiration.
In looking into the report of the Master of Road for
1858, find that he used 1851 tons of iron which cost
together with the other materials used in repairs of rail
way, $3.50, 296-or S60.S3 per ton.
The report of the same officer for 1859 shows that he
used 1886 tons of iron at cost together with the other
materials used in repairs of railway of $l12473-or
$22 Sc per ton
have looked in vain through the reports of the two
years. for explanation of this surprising difference
between the cost of railroad iron and materials used in
repairing railway in these two consecutive yearslS5S
and 1859 Had the iron of 1859 cost the per
the iron of 1855 notwithstanding the reduced number of
tons used the cost of repairs Of railway would have been
1903 29S than you put them down at and your Oco
Der dividend would have vanished exactly.
The economy that buy railroad iron in 1859 for
$50 per ton the BEFORE much of magic that
fear people will think there is mistake but there
the figures If there be any error it is not mine
The Master of Road, perhaps will degn to explain.