Rutland weekly herald. [volume] (Rutland, Vt.) 1859-1877, 1873-10-16
Rensselaer, & Saratoga Railroad.

For several years past we nave neafd
complaints against the grasping policy
of the Rensselaer, & Saratoga railroad
company, and a great deal of wholesale
denunciation has been INDUCED in, of
the merits of which we are not prepared
to Judge and know too little about the
facts to form an opinion. The Troy
Times has however been looking over
the record and makes the following
statement, which is worthy of consider
alton before indulging in complainings:
We have been looking into the BUSH
ness of the railroad running north from
Troy to discover whether it is making
enormous profits upon its traffic, and
whether its receipts and gains will war
rant a material reduction of its rates.
1t is said that figures won't lie. We ask
a fair and candid consideration of them.
In the report of the state engineer upon
railroads, for 1871, the capital stock of
the Rensselaer, and Saratoga railroad is
put at six millions of dollars. The
funded debt was then 81 300, 000 The
latter was at interest ut sevon per cent.
The length of the line is 181 miles. The
average debt per mile is, therefore, $44,-
900, which is not great. The gross
earnings of the road that year were ST.
576, 694 %. The total payments, except
dividend, were 81, 1927, 36309 The net
gains of the year for the stockholders
were, therefore, just four per cent. on
their capital. Do the farmers, who are
so fortunate as to have money to loan
desire to let it for four per cent. year
mould tho ctnaly hnldarc
of the railroad get on their money if the
rates for carrying were reduced twenty,
thirty or forty per cent? If they have
put their money into railroad, should
they be compelled to run it at a loss
The road has always been carefully and
prudently managed, so that what has
been earned has been saved beyond
doubt.
The report which we have presented
was the last one that was made by the
railroad company. During the next
year following that the railroad COM
pany leased the rad to the Delaware
and Hudson canal company for speci-
fed rental. The lessees agreed to pay
seven per cent. on the capital stock for
the lease. The results of these transaC-
tons are found in the annual report of
the State engineer on railroads for 1872
The cost of the road is increased a half
million of dollars although the stock
and funded debt are reported to be the
same. The gross income for 1872 was
81, 748, 915.25. The payments, includ-
ing the dividend to the stockholders of
the railroad, were $1,779, $50. 10. That
is, the canal company paid out $31, 060
more than they received. If there are men
who think that there is enormous profits
in this business, won't they please take
a pencil and cipher out just where the
enormous gains are? This railroad,
which is alleged to be an eXtOrtiOner,
has paid its owners during the last two
years officially reported, just ten per
cent, or .ti0e per cent. year. Two
years ago it was in the hands of capital
lists in Troy, who had long controlled
it, and who knew its value as an invest
ment. They leased the property for
Se0en per cent. interest per year. fitwas
worth more, and they could show that i
was, it is not to be presumed that they
would have made a lease for that sum.
The lessees report a deficit of $31 900
the first year, after paying the dividend
which they contracted to pay. We
should be glad to see some of the papers
and the people who are swift to de-
nounce this railway management with
out discrimination take these figures
and facts and wrestle with them.
il is not fair to excite prejudice against
the present management of the railroad.
because the icaBa5 company is not local
organization. One. fact is Hndeniable.
namely, that the management is not es-
sentially changed. That is, there is. no
increase of rates, either for passengers
or for freight. The road is improving;
a new local route to Albany has been
opened steps for double track to Sara
toga are already taken; steel rails are
being put in place of worn out iron
more trains have run during the last sea-
son than ever Besides these acts, the
lessees have undertaken the extension of
the road towards Montreal on the west.
side of Lake Champlain. 1t is some.
thing that the interests of this section
of the State have long wished to see /
done. This project is pressed forward
under the general laws of the State. No
special legislation was asked for beyond !
the grant of the rights and powers which
had previously been conferred upon /
other companies which had attempted /
the same great undertaking and failed in /
it. We put this question to the candor
and the sense of fair play among men
whether there is anything in the con-
ditiOn of the Rensselaer, and Saratoga
railroad, or anything in the conduct of
its present managers, which justifes the
assertion that they are extortioners and
the enemies of the people who patronize
the road2 We believe that we state.
facts about which there can be no cues
ton. II this is the real case, the railing