New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-08
NEW-YORK WEDNESDAY, OCTOBER 6, Is73-TRPLE SHEET.

estimate, providing s23i2000 for buiidings IN
cludes $4,000 for repair-shops for machinery anu
cars 1874 stations at 5000 EACH or s6soo lastly, ~
principal stations at $4,000 EACH s25oOo These hg
ues are out Of all proportion low for length OF line
OF 2CO0 miles, workshops at the collective amount oi
sJO stations the whole arrangements OF when are
put down 600 only and principal stations az s20
each cannot be looked upon as adequate 10 inc require
ments This item, therefore, will have 70 be in-
| creased The same remark applies to item 8, which
provides SG5O0 the working capital and out OF TINS
TO be procured locomotives 100 hrsteass pas
cars secondclass passenger cars 80 smoking
cars, mail and baggage cars, and 1900 freight and
cattle This working capital is so SMALL and STANDS
in such glarng contrast with the length OF lne that
much more will be required than has been provided Dy
the estimates. In North' Germany line OF similar
length would require than 25,0C0oOo thalers ana
though 1t may not be quite fair to measure American
! expenses by a German sandard-a maxim which un-
derles this repor-s the most superficial critic must
perceive that here a very considerable augmentation
needed With regard to item 9, providing 2SoOoO for
the payment OF interest during construction similar
claim will have 70 be put forward. Suppose the time OF
building to be four years-a supposiuon based upon
exact information obtaned-the works would consume
quarter OF the building capital in every year during
the building period This interest will have 10 be pald
at the end Of the first year upon onequarter at the
end OF the second year upon onehaf at the end OF tue
third year upon threequarters, and at the end OF the
|
Hence the interest during the four years will be q times
tho annual interest.
! 10. win an emission Of bonds to the amount OF
sOoOO0OO rate of interest OF 73O gold the interest
during the building period will foot up Ss250OO0 gold,
and though the building fund need not be burdened
with that since the money obtained for bonds ana not
Immediately required for building purposes may be
otherwise employed with advantage and since also the
intermediate finished portions of the line will yield
before the whole line is opened, nevertheless.
what may gained in this way must not be overesu-
mated The estimate of $3260OO0 IL sufficiently high, so
100000 interest will have to be paid out OF the
capital Item o. therefore, will have TO be Increased IN
proportion.
a. IT, according to these calculations, the estimates
require manifold augmentations on the one hand, we
must not lose sight of the fact that the other hand
the fixed building capital sOo 100000 is not reached by
the total Of SIS 100000 OF the estimates but exceeds
these estimates by s5OOOOO0. In therefore, the
bonds issued too much below par, the respective
items may be augmented by this surplus, and tins may
DC the easily effected, according TO the COM
municatons Of Mr. Jay Cooke in conversation on the
subject that gentleman is prepared to consider the mat
ter with a view to such augmentation.
With regard TO this last point but only in view OF
the possibility OF these ancipations being realized
there for anxiety about the estimates, and
after such augmentation occasion for unayorable
Judgment.
w htcOnu qucstohf -'Nt'"
Pacific Railway, after its completion, offers the ne
cesary guarantee that the surplus accrung out Of the
traffic will suffice TO pay the half yearly rates OF
interest the bonds It is to be observed in the first
place that the interest the Of per
capital of SlOOOOOOOO amounts to $500 OOO To obtain
net profit OF a similar requires gross income
of 100000 year 1t is proved by official data that
the net profits the American railways equal TO IS
per cent OF the gross income, IS cent OF the total
being consumed by the working expenses.
PROBABLE TRAFFIC..
IT, whether the completed Northern Pacific Railway
will be able to count a traffic that Will yield an in
come of s2OOOoO year only be ascertaned by an
inquiry into Of the population and ITS indus
trial and commercial relations. and 1t will be important
TO keep the actual OF these relations very carefully
in view The tract OF country trIversed by the North
ern Pacific Railway upon which at the outset the line
depends for acquiring and securing local traffic is sit
uated in the States of Minnesota, Dakota, Montana
Idaho aud Oregon, and IA Washington Territory These
IA diug IN he N