The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1874-02-05
TOTAL CAPITAL AND DEBTS.

Pennsylv'a 1906 1921 1887 SO, sse, 1877
B. & o. 1,1ol 16,7l1,10o 101o9.os7
TOTAL CAPITAL AND DEBTS.
New York Central, Sl05,924, 800
New York and Erie, 118,265,9 1919
Pennsylvania, 1868. 1924
Baltimore and Ohio, 26,9S0, 097
During the year the New York Central
and New York and Erie have had severe
struggle to meet their current obligations.
The Pennsylvania road obtained from the
Legislature last April authority to increase
it's debt and capital stock by $4,000, 600,
and 10 October paid its dividend ia scrip.
The Baltimore and Ohio railroad in that same
period paid out of its own current and aceu-
mulated earnings cash dividend Of 10 per
cent; expen'd Slo,000,0o0 cash il new roll
ing stock, bridges, steel tracks and new roads;
reduced ita indebtedness, and added 81, 500
600 to it's surplus fund. describing frsc-
tons it's gross earnings in the year were
9l5,500,000; expenses, sI0,000,000 net
earnings, $5,50O,00o Oftho year before, net
earnings were $5,00o,00o. Despite the ex-
traordinary expenditures, the company added
$2.SS2,000 to- its surplus fund, which, on tke
first day Of October, 1878, amounted to $780,
o34,4o4. The company enjoys credit as
home aud abroad. superior to that Of any
nther railroad company in the United States.
It does business on the cash principle. It
buys and builds with its own money. It has
now under construction road through Ohio
and Indiana to Chicago, which was progress
sing during the whole season of the panic,
and will be completed here during 1874
Now compare this condition Of business with
tkat Of the other roads.
The New York Central company has to
pay out of its net earnings interest and div
idends on $106 600 900; the Now York and
Erie on Sis, 100000; tho Pennsylvania on
$116,0o00 900, and the Baltimore and Ohio
on $26, 100000. Ia addition the latter COM
paaY has an invested surplus Of $685. 1000,
and the others have none. Despite tho OBJ
stucles placed ia sits way by its rivals, it
forms now one Of the four great trunk lines
from the West to the Atlantic It is already
able, even with circuitous route, to carry
passengers and freight from Chicago to the
seaboard at a profit for less money thas any
Of its rivals. 1t can deliver four, grain and
provisions on board the Liverpool steamer at
Baltimore at rates that neither of it's COM
petitors, nor any other railroad built and OPP
Grated on the vatered stock basis. can at
tempt. If the New York Central, New York
and Erie, and Pennsylvania roads cannot af.
ford to take passengers from Chicago to New
York or Philadelphia for less .haa $40, OF
-four at less than 81 rs per barrel-and these
rates are actually necessary to make prof
it follows that the Baltimore ana Ohio
road, having to pay dividends on but one
fourth the amount of debt and capital. car
perform the same transportation at much
less. Estimating the operating expenses o,
all the roads TO be the same, and equ.in.
two-thirds Of the gross receipts, each of tn
three roads has to pay interest and dividend
on four times the amount OF capital and deb
that the other road has to satisfy. Conse
quently what is living profit to them is 8
large a profit to the road doing business on
cash basis that it can always carry for les
rates, and compel them to run at loss,
competing for the same trade Watere
stock is fraud, ard the Baltimore and Obi
road is The detective officer destined to CT
pose it.
Other Chicago papers note that the Bait
timore aud Ohio road during the month c
December carried over its line for foreig
shipment f6 900 packa ges of provisions an
100000 bushels Of wheat and corn.