Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1872-11-20


our costly standard gauge system This
would have equally developed our eouotry
and its industries so far as oil practical bono-
fits are concerned, at a vastly less expense
The cost of narrow guago railways is placed
at from twelve thousand to seventeen thou.
sand dollars per mile The cost Of the Dem
yer aud Rio Graude Railway, fully equipped,
is stated at thirteen thousand FIVE hundred
dollars FER mile, while the cost Of the Canada
narrow gauge railways is reported at about
fifteen thousand dollars per mile.
Had We constructed our railways under
this system, at an average cost Of even twenty
thousand dollars per mile, equipped, the
account would have stood betwcen-tae two
systems as follows
sixty thousand miles standard suago
nt Gny thousand dollar. per mllcl Sh0nWNOn
sixty thousand miles narrow gauge
at twenty thousand dollars per
indifference. ....+t..+..t.t++ lf@niNluN
Showing a saving on eon'n.efop
alone oi.......................... firNNO0n|
Now, calculating the interest at the rate Of
serea per cent (which is a low average,
the interest on The sqriags would he, per an
num- the sum Ct one hundred and twenty-six
million dollars, and the account for twenty
years would stand as follows
Principal saved Observation-Disclosures. 20 SUOo,OOu
Interest saved........ s'oAmoo9o
total saving in twcut, years of... s,,3n,opooO
Or in other words, would have added four
thousand three bundred and hcenty million
dollars to our active working capital, which
might be applied to further railway develop
ment Of our various industrial interests.
As it is, the cost Of railway construction
and operation affects every industrial interest
Every farmer, miner aud manufacturer, and
even the commonest laborer, is interested
The price Of bread, the price Of grain, the
price Of dry goods groceries, boots and shoes,
iron, cotton, and in fact all things are affect
ed by the cost Of construction and operating
our railroads 1t is not subject of local,
but of national Importance, aud any uafsement
cheapeniug our railroads and their Operating
expenses, reduces the taxation on all y necos.
saries of life lIlncc, this ques,iot one Of
the most vital importance. Instead Of having
our roads mortgaged 10 foreign bondholders,
and the country aud all its industrial inter
ests groaning under the burden Of the debt,
that sum could have been saved, and this
country have been independent at present, by
reason Of suliceucy Of capital, with ample
means for the development Of its industries so
as to be able TO compete in the markets of the
world with any other nation.
More than that, our roads could have been
free, or nearly free from debt, aud from their
small cost and light operating expenses been
able to pay a dividend to their stockholders.
On the question of dividends, let us quote
the evidence which the New York Nation Of
fers on this poiut. 1t says;
4" The gross annual earnings Of this--the pres
ent broad gnuge-systcm are about Si55, GOO 600,
Of which not more than thirty three per cent. can
be set down to net profit, or total Of Sl50,00O
900, being exactly fee pr cent on NE cost. y
We have seen that under the narrow-guage
system Of railway we could have constructed
10000 miles of railway for 81 200, 000,0 600
that they could perform all the business
required by the country. Admitting, for the
sake Of argument, that the net earnings are
no more than under the present system, !. e.,
Ihirty-three per cent or $3.50, 900, 900 that
sum would be t,oelre and half per cent. on
the Investment instead of five per cent, I'M
der the present system.
But the advocates and managers of the
narrow-gaugo system Of railways claim, and
in practice have proved, that there is also
economy in operating expenses, and that at the
same rates Of business the GpeFsting expen-
SEES would not exceed fifty per cent. of the
gross receipts. This would return at pres.
ent rates net income of 1925 100000, or
eighteen and tbree-fourths per cent on the
investment.
Or the rates might be reduced, relieving
the country Of enormous taxation. stimulat-
ing all our industrial Interests, adding to
business and still yield dividend of l2l
per cent on the Investment.
This is q sabject that invites the attention
of every citizen, be he laborer or capitalist. We
can not undo the past but learning from the
past, we can and ought to build rightly for
the future.