Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-01-17

New York Central .Sl05 924 800
New York and Ere........ ...."....... lie, 2h5319
Pennsylvania llb, Coz, ga
Baltimore and Ohio. 70 98UOS7
During the year the New York Central and
New York and Erie have had asevere struggle
to meet their current obligations. The Pennsyl-
vauis road obtained from the Legislature last!
April au,h0 ity to increase its debt and capital
stock by S3G,000,UO. and in October paid its
dividend in scrip The Baltimore and Ohio
railroad in that same period paid out OF its own
current and accumulated earnings acash divi-
dend of 10 per cent expended $1,000, OC0cash
in now rolling stock, bridges, steel tracks and
new roads reduced its Indebtedness, and added
~ SOO, 600 to it. surplus fund. describing trac-
tions, its gross earnings in the year were Sl5,-
So, 5Ol 900. Oflhe year before, the net earnings
were S., 100, 600. Desp to the extraordinary OK
pendtures the company added $685. 90 to its
surplus fund, which, or the first day .! October,
1873, announced to 29,O3t, 4.4 L he company
enjoys credit, at home and abroad. superior to
that Of any other railroad company in the Uni
ted States. 1t does business on the cash prlncl-
pie. 1t buys ard builds withits own oney. lthas
now under construction q road through Ohio
and Indiana t. Chicago, which was progressing
during the whole season Of the panic, and will
be completed here during 1874. Now compare
this cond ton # business with that Of the other
roads. -.-.
The New York Central company has to pay
out of its net earnings interest and dividends on
SlU6 UGU 600; The New York and Erie on $lfS,
Coo GO; the Pennsy lyanis IN $ll60y00O and
The Baltimore and Ohio on Sz6,tOOCou In sd
dition the latter com any has an invested sur
plus of S29, G00,OOu, and the others have none
Despite the obstacles placed in it's way by its RI
walls, Il forms now one Of the four great trunk
line, from the West to the Atlantic. 1t is al
ready abb, even with circuitous route, to car
ry passengers and freight from Chicago to the
seaboard ut pr. bit for less money than any Of
its rivals 1t can deliver -four, grain and pro-
visions on toard the Liverpool steamer at Balti-
more 1T Rates that neither Of its compett u.s. nor
any other abroad built and operated Oh the
watered ock basis, can sttempt. If the New
York Cent al, New 7 ork aad Erie, and Penn
sylyania roads cannot afford to .ake u passenger
from Chicago to New York or Philadel phia for
less than $50 or dur ut less than 81 "a per bar
rel-and these rates are actually necessary to
make pr fit follows that the Baltimore and
Ohio road, having to pay dividerds on but one
fourth the amount Of debt and capital, can per-
form the same transportation at much less Es-
t mating the operating expenses on all the roads
to be the same and e4uallng two thirds of the
gross rectip,s each of the three roads has to pay
interest and dividends on four times the amount
u1 Capital and debt that the other road has to sat
isfy. Consequently what is but living profit TO
them is go large profit to the road doing bust
ness on u cash basis that it can always Garry f,r
less rates, and compel them to run at lOts, if
competing Tor the same trade. Wstered stock
is \ fraud, and The Baltimore and Onio road is
the detective officer destined to expose it.
Other Chicago papers note that the Baltimore
and Ohio road during the month of December
carried over its line for foreign sh pncnt IL, OJl
packages Of provisions and 500 OOU bushels wheat
and corn.