The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1873-08-08

A CORRESPONDENT of the Galveston
News, who is writing up the railroad
history of this state, has this to say
about the Central:
The construction of the Texas Cen
trail Railroad was commenced in 1854
and was completed in the presentyear;
Its present stockholders subscribed
about 81 100000. The present bonded
and other Indebtedness is about Sll,
O00,000. Up to date no dividend has
been paid, all profits having been de-
voted To construction, without the ere
alton of any additional stock. In order
to calculate the actual cost of the stock
to its present holders, we must add to
its original amount the amount it has
earned in nineteen years at twelve per
cent, compounded semi-annually, and
the sum expended on reconstruction.
We have in round figures the following
result
Compounded interest on stock......" 7,QOO,Og0
RccOnstruction..., "."........,,......" t'oUo,oOO
--------
Total SO, 500 900
Had it not been for the very cXcep-
tional advantages enjoyed for Il time
by the road in its monopoly of the
trade Of the most fertile and populOus
part of the State, it would have been
necessary to further increase the in
dcbtedncss Of the company.
The capital stock Of the Central must,
therefore, when we consider its profits,
be estimated at SIT, 100000. This may
seem to some q large increase on the
original investment, but no one aware
of The rapidity with. which money is
compounded, and acquainted with the
high rates obtained for money in our
State during the last twenty years, will
doubt that the sagacious capitalists who
have conducted this enterprise could
have made even more by other uses OF
their money. Further, we are only
speaking of the cost of the stock, not
of its value. That is far less, rs is evil
denced by the fact that the highest
cash price ever paid for Central stock
is 800, and the highest nominal or
trading price 500.
This proves that business men do not
expect that the dividends the Central
will earn will be Il very high per cent
age on the actual cost OF the stock
Even should Il dividend of 100 per
cent. on the 81 600, 100000 of stock be
declared, this will actually he less than
10 per cent. on the cost to its original
holders. These considerations, we
think, eflectually dispose of the delu-
sion we have been combating. Attic
same time they in no way affect the
fact that the Central Railroad is an en-
terprize of which our State may well
be proud, and in which capitalists may
repose every confidence.
The Edinburg Daily Review records
an amusing conversation which took
place in the galleries of the Free Church
Assembly one day lately:
Young lady--"rhere's old DR.. A. 60
ing to speak. Isn't he bore"
Old lady, laughing.-Well, suppose
he is; but, do you know, ! rather like
him."
Young lady-'I can't bear him."
Old lady, after some time--"Who is
that nice old gentleman speaking~
Young lady "Ah, that's MIR. b.,
of CO.
= Old lady, observation-disclosures you
wink he is rather-prosy?'
Young lady, indignantly-"No in
deed, do not. Allow me to inform
you that that is my father"
Old lady-Oh, indeed. Then l am
glad that hit the mark so gently, be-
cause old DR.. A. is my husband. So
suppose we have both got lesson, my
DEAR don't you think so?."