The Placer herald., 1870-03-12

brace the Sacramento Valley, Shingls
Springs and Central Pacific roads. All the
talk in the report about the "enormous ex-
pensive snow.sheds, vast earthworks un-
parslIed 10 magnitude" etc, is mere ro-
mance-bosh. stuff, intended only to draw
the wool over the eyes Of silly-pated numb
scuIled Legislators, who should be al home
selling peanuts, pedding eggs or peuy-fog-
girg 10 some China case 10 Justices Court;
the smarter ones will fight the report or de-
mand money, as their honesty or dishonesty
dictates.
What are the facts with regard to the
Central Pacific, the only Road really fiuan
cially concerned. The snow sheds are in
better condition to-day and less expense to
the company than they will ever again be,
as they are new now and decay has no, ye,
effected them. The "vast and unparalleled
earlhworks" were all complsied three years
ago to the State line, and have become as
fully settled as they ever will. There was a
| time when these spow-sheds were not built,
and these "vast earthworks' were pew and
unsettled !; and what did the Road then do I
Fortunately we have the facts and figures as
given 10y the company itself, through the
sworn statements Of its officers. We copy
from the statements Of the financial agents
of the company, Fisk & Hatch, in 1867
About 100 miles are now built equipped
and in running operation TO the summit Of
the Sierra Neva as
The local business upon the completed portion
surpasses all previsns estimate. The figures for
the quarter ending August 3lst, 1867 are as fol-
lows, in GOLD:
GROSS orxnArTyo NET
s4s7,579 GA ss6,54s AZ s4OiOsl II
or at The rate Of two million per annum of which
more than three fourth are net profit on less 100
miles worked ihis is upon the actual, legit-
mate traffic Of the road with ts terminus in the
mountains. and with only the normal rate OF gov
ernment transportation. and is exclusive of the
materials carried Tor the further extension OF the
road.
Here is 81 500, 900 net profits per year
on 100 miles Of road with unsettled EN-
baukments and no snow-sheds. Now the
road has reached this ever-expanding
through traffic." and it is in an impoverished
condition audicannot possibly bear a reduc'
lion Of rate. Of fare and freigh,s. The net
earnings for tho following month. Septem-
Der. 1867, were 5000, 400 in gold, or at the
rate OF Two and half million year on 100
miles Of new road. The Company's remark.
on this result are:
"Th' result was upon the actual, Legitimate
local business alone, with less than the ordinary
proportion OF Government transportation, and
under the disadvantage that passengers and
freight had to be forwarded by wagons, from
the temporary terminus. at the summit OF the
mountains; and is also Independent Of the trans
portation Of men. and materials for the extension
of the road.
This ratio of profit (ncarly eighty two per
cent of the gross carnings) is without parallel.
even among the oldest roads in existence and
is in fact nearly three times the ratio OF the best
leading lines OF the country.
The reader mus. remember that the op-
Grating EXPENSE, including Stations, trains,
wharf service, locomotive service, repairs of
track, buildings. engines, cars, office expenses
stationery, damage to freight, stock killed,
taxes and internal revenue, all cost the Com
pany only eighteen per cent. on these enor-
nous earnings, thus leaving eigb,y.two per
cent or more than four.ffihs net profits. If,
when the road was new, with no connecliog
terminus, and operated under great disad-
vantages and embarrassmeuts its running
expenses were only eighteen per cent, wha
ought they to be nowl But strange to re-
late, now. the road being settled, the snow,
sheds completed. and lis lever expanding
through traffic" reached, the operating ex-
psnses for The year 1869 we're over one
hundred per cent. Is any man fool enough
TO believe it Suppose even this was true.
which it is not. except through square rob
berry by its officials or employees, and what is
the resultl Why. that the ue. earnings OF
the road for 1869, after paying all expenses
and interest on first mortgage bonds reach
ed sl,l60,oOo. which would give its six
principal owners each about one hundred and
ninety thousand dollars net pocket money.
But say it was not robbed and that the op
Grating expenses were twenty per cent. land
il will be observed that this is more than
they we're op the new road 10 1857 which
is about the correct percentage, and what
do we findl The gross earnings for 1869
we're $5.749,535; operating expenses, ST..
l49 9l0; in.sres. on s2o, 900, 900 bones It
six p.rcsn,.l 81 900, which leaves net
. rnings f.r 1860, sa,oa7,e7e. Divide tbi,