The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-04-24
WHICH SHOULD GOVERN
TIE LOCATION OF RAILWAYA

and localities atfording the largest amour
oil aid for their construction. Expert
ence is now correcting these errors, ant
tue people on this route, and especially IL
the enIerprislng city Of Wheeling, sec II
this line the best guarantee Of tho future
greatness Of their city. To afford aid Il
mere local lines which cannot earn divi
dends on their stock, would be waste O
the city's resources. Hence, the munich
pality has sought and obtained Lcgisla
tive sanction to the loan Of It's credit II
aid OF this most important undertaking
and to the bridge across the Ohio river
by which Il and other lines will obtain al
entrance into the city.
The Wheeling and Lake Erie Railway
will not only open to tho city the bcS
and cheapest means Of obtaining an abun,
lant supply OF the raw materials for ii
smGlters and manufacturers, but will, al
the same time, afford it the best route tC
the very markets where the products Of
their industry arc most needed and dc.
manded. In fact, the new Railway will
build up Wheeling and Wheeling will In
turn build up and aid in making the Rail,
way complete commercial success, as II
is certainly destined to be. A very strlk.
Ing example Of similar mutual advantages
Is to be found In the case Of the city Of
Baltimore and tho Baltimore & Ohio Rail.
way. 1t Is difficult TO determine which
has done most for tho other.
The same observations apply with
nearly equal force to the cities Of Toledo
and Sandusky, and the towns intcrmc.
diatc between them ami Wheeling, which
will .havC now facilities afforded them for
business, and a greater number of mar.
kcts will be opened for the products Of
their industry.
X.-RsTIMATEs OF TRAFFIC.
The Cleveland s. Pittsburgh Railway
has been referred to as similar in route
and character to this line. 1t will there.
fore afford sale and reliable basis for cs.
timating traffic.
The two lines are too fur distant at all
points from each other and their several
sources OF business are SO widely differ.
cnt as 10 remove oil cause OF jealousy or
rivalship' Each will have It's own do
main, and hence the deduction we arc
about to draw will hardly admit ol exCep,
ton or drawback
The length OF the two lines is about tue
same-say 200 miles. 1t appears from the
official State Report on Railways for 1870
the latest published, that the total cost OF
construction and equipment OF the Clevc.
land & Pittsburgh line up to the Both Of
June, 1870, amounted to 11,21O,793.
The share capital was $7,4l0,274, and
the bonded debt $3,S35 900. The gross
earnings for the then last previous year
amounted to $2,5l2,373. Tie net profits
above all expenses for maintenance
oil permanent way, rolling stock and
operating were $l,034,G0G, out Of which
S27l ,038 were paid for interest on bonds,
$l24,SO0 for other items o: interest and
$GlO,52S in four quarterly dividends, two
Of two per cent and two Of two and one.
halt per cent-in all nine per cent on the
share capital, leaving u surplus OF $153,.
DOB, equal 10 about two per cent more on
the share capital.
1t will be seen by these figures that the
net earnings amounted to 40 per cent Of
the gross receipts.
II is believed that with the modern i'm.
prOvements in railroad equipments, the
Wheeling & Lake Erie Road can be oper.
ated with 50per cent of its gross earnings
On this basis let us suppose that the
Wheeling & Lake Erie line earns only 90
per cent. or one-half Of the gross receipts
OF the Cleveland & Pittsburgh, or 81 ,25G,.
600. Fifty per cent OF this would amount
to SG2SO0O; deduct 1924 900 for interest
on bonded debt, leaves $404, 1000 applica
BILE to dividends, or ten per cent on the
whole capital stock of the company. But
II the operating Of the road should OK
haust 90 per cent Of these gross earnings
the remainder, after paying interest on tht
bonds, would pay dividend OF Z per cent
on the whole capital stock.
Well informed and experienced railway
men who have been consulted are of opin
ion that the Wheeling & Lake Erie ltall
way will start of the first year with {
tratfic'at least equal to the present aver
age of all the railways in Ohio, amounting
to $S,2GS "a per mile. This would yielt
for gross receipts 81 ,G53, 7SS, and $3.50 ,SOt
for net profit, which, after payment of in
tcrcst on the bonds, would leave 5000 49,
for dividends un the stock-equal to ter
per cent, leaving surplus Of five per cent
In our judgment, in which we are sup
ported by all well informed railway men
these estimates arc far below the mark
Within three lcars after the line has been
put in operation, We anticipate its receipts
will fully equal those Of the Cleveland 6
Pittsburgh, or say in round numbers
$2,500,0O0. We think the great resources
ofthe country alreadyenumerated through
which the line will pass, and which ever
now exceed those OF that part Of the STATE
traversed by the Cleveland & Pittsburgh
justify this assumption. On this basis iht
net earnings would yield a dividend o
twenty per cent and leave an annual sur
plus Of 100000, to be carried to the ac
count Of sinking fund to liQuidate TIT
bonds at maturity.
M.-CoNTRACT FOR CONSTRUCTION.
A contract for construction and equip
ment has been entered into with tiC
Messrs. Wilson & Co., Of New York, OF
terms which assure the completion Of thu
whole line in thorough and workman
like manner with a full and adequate
equipment within two years after the sur
veys are made and the local subscription
filled up to the terms of the contract
The company has received notice tina
these gentlemen are ready to commenC,
work in conformity with their under
taking.
As guarantee of good faith the con
tract provides that the stock and bond
shall be issued TO and placed in the hand
ola responsible firm Of bankers or mer
chants acting as trustees, to DO delivered
to the contracting firm on tho engineer
estimates, and to the stock subscribers q
their calls are fully paid. This Safeguard
Is designed to inspire confidence in thos
subscribing for stock, as well as capital
lists purchasing bonds.
In conclusion the Directors dnairn .,