, 1874-07-08
RAILROAD EARNINGS IN 1873.

1
surprising. notwithstanding tho panto Of spp-
tombor, and the HubBeQuont husponsion nna
pros.ration OF 40 much businoBs, tho railroads
of the United States Ind moro prosperous aoa-
BON than tboy had had for soyorat ycass In 1871
thoro wore built in this country 1860 miles Of
iu 1872 thcro wcro Q, ,1e7 miles; and in
1873 there wero 8,9l8 milcs. In tho throo years
there were built no loHs than 17,743 mlcB Of
RAILWAY, the most Of which has been unpro-
duotivo, and large portion not earning
enough to pay operating expenses, much loss
pay intereat Oh bonds. Many OF those railways
have boen built on tho no cash system; that Is
to nay, o1c1uBlyely on credit. In many cases hcre-
by doubling tho cost Of THO construction. But 1t
will be soon that tho business OF building rail"
ways had received dooided cheots boforo the |
panic struck It crushing blow. Tho work had |
been overdono, and tho market was overloaded |
with railroad bonds, representing moro than tie |
valuo Of roads, which Hero not earning enough |
to pay the cost Of running tho trims. At tho |
close OF 1879 there wore completed u, 900 miies
Of railway. At tho close Of 1874 there woro
completed in tho United States 6G,237 tnllca OF
railway, which we're in operation in 1879. There
waB outntnnding and supposed to represent the
cost Of tnuao roads All indebtedness thus maae
up:
Honds a,s osher forms Il lasooo44so
Tonl assumed coat ,78d, ,t43.o34
Thia aum includes, In addition to the actual
u hnrss ssau nS1H
stock voted as gratuitoB to the construction CON-
panieB etc.
Tho earnings Of theso railways for 1873 were
as follows:
From freight. 3soo329 9os
aross earnings. 1926 1856
Operating expenses. o43oo''e''
Net earnings. $io3,ol",bo2
| This, It must bo remembered, includes ali the
unproductivo and 1an.paying railroads Of tho
country, and ehowH tint tho operating OK
peuacs averaged 65 per cent, leaving 30
ner cont aB net earnipgs. While
large number Of roads defauted In
| tho payment Of interest on honda aud passed
dividends, there WAS paid III cash for dividends
Oh stock, eG7, 1000. or an average Of a.45 por
cent On the aggregate paE valuo Of capital stocS'
aud $11G, 100000 ~ interest Oh bonds, equal to
C,25 nor cent on tlo wlolo bonded Indebtedness
Of alt the roads. 0mitting the rolroads,-
mainly speculative and built in advance of any
business recently, (which dofaulted, tho divi-
donds for 1878, computed on stock aud bonds
swollen far beyond the honest cost Of tho rail-
WY, wero not only liberal but PROMPTLY paid.
These figures compare we'll, Notwithstanding
tho ycar 1878 waa for four months stricken with
q panlc With the figures Of 1879.
1919. 1879. increase.
o1 anG dsGt. % so7s4 s4sos4 $780, 42ao57 se2511e91
nj sss:ss9: s Ssss ssS ss3ss'
These tlgures are on tho lines Of railway &C
| tuatly In operation in 1873. There was as
iucrcaso over 1872 in tho amount Of capital Htocl
aud debt of about 90 per cent. which represented
lhe increased mileage. The gross earnings Il
1879 wore 14.75 por cent upon the total capita
| and debt, and in 1873 we're about II per cent
thus, notwithstanding the Increase Of capital b.
, the construction Of the 0.000 miles OF not
! roads In tho year previous, which new road
we're mostly non-produotlye, the proper
tionate business Of the railways. as show
by their gross earnings. was hardly less tint
that OF 1879. Upon tho o!d-establiahed road
tho increase OF business was general aud large
+, but tie introduction Of 6,00o miles OF new rai
| Why which earneh nothing above sta oparatin
expenses kopt tho average of tho whole counts
= down to tho loyel Of 1872.
= The average Of oporating expenses Of 1879, {
all tho railroads In tho country old and new, wa
GO per cont OF tho groaB EARNINGS.
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GENE8I8 OF THE DEVIL.