New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1874-12-07

srEELRAIhING AND DOUBLE-TRACKING THE
LAKE SHORE RAILROAD-WHAT II COST
TO the Bditor Of The Tribune
SIR: VIII You permit your railroad statsti-
clan to inform constant readerand perhaps the pub
lie as we-hOw much more he thinks ought to cost 10
replace iron rails with steel completed railroad
than it originally build fully equip the road
itseff Simple this question appear to YOU 1t is
seriously put and is by recent discoveries
which have made In nv explorations 20 wit
That the Lake Shore and Michigan Southern Railway
Company was consolidation on Aug I, 1869, OF the
several companies owning the roads which formed the
lhe from Buffalo to Chicago. with combined capital
represented by stocks and bonds about So O0OO0
including some C0OOO of water" that actual
cost OF the entire property then about 55,OO0OO
that almost as soon as the consolidation perfected
the Company began to to steeira its road.
ana has never yet ceased TO raise Tor that and
" other purposes" learned that:
In September, ,lsco. the Company Cor the
purpose of providing additional cqripnent
necessary for the new consolidated Com
pany Issued and sold ITS stock TO the
~ Amount Of s1,2OOOoo
railing portion Of its road ard other pur-
poses II issued and sold sinking fund bonds
70 the amount Of 100000
ized an issue OF S95 100000 consolidated mort
gage bonds for the purpose of retiring the
which amounted to s56.7lSooo. leaving tie
balance "for steel rails, double track whore
needed, and for other purposes. including
the taking up Of the iloatns de5t -. 42scooo
In september, ls7l. tie Board of Directors
ordered the issue II sl4O5O,OO0 OF stock to the
stockholders AZ 33b per cent This sum which
was needed for the purpose OF douDle-track-
Ing and steel-raiDg the road, and for the
payment OF the floating debt and other pur-
poses, amounted s4cceC6G
In 1872, "fOr the purpose of Stee-ra. ling amt
mountaineering the road and for other pur-
poses the remainder OF the authorized
STOCK was sold 100000
II EovemDcr 1872. the Board of Directors au-
thuI1zed the issue and sale of Sc GU0,O00 sinking
fund bonds Tor tle purpose or competing the
OUUble-tracking and stee-raing OF the road.
AID FOR the retirement OF the floating debS"
o. these bonds there lad been issued on Dec.
81. 1873. only 62O5OOo
Total issues OF sfo,ks and bonds for the
purposes specified sls s3l,GGs
The foadnc debt had not been paid hut had
increased from sil6,5al as OF Dec. 81, 1869
S. C54 32l on Dec. ST. 1873. Therefore We nave
10 add steel rails, double tracks AID other
purposes, the sum C237.S7O
Making a total Increase in liabilities. from Aug
l. lsG3. 10 Dec. 81. 1873. "iOr TIE purposes OF
steel rails. double tracks, and other purposes"
-s24 5So53C
The results are 81 miles additional road. 1914 miles Of
additional "doube track" total double track. 2Go
miles,; and Of $50 miles Of single track Qncludne
only the first and second tracks, owned by the Com
pany 43 are "steel rails" additional equipment" and
"other purposes" Now in view Of these facts and
that read of and parallel road go miles long
having Just completed at cost OF less than SC OOO
Ooo including the purchasing of "rIcht of way "steel
rails" "dcpots," &C., &C., it appears TO that my
question Is not simple, but quite pertinent
II we add 10 the oregoing for purpose" the
other two-thrds the Issue of S4O))O0O OF stock,
which Is 50 353334 have total increase the capt.
tai Dec. 81 1873. of :359o2S70 only about
$1,000 GOO less than the total entire property
Of Aug l. 1862 II possible please the question,
for the foregoing figures confusing to the head Of
Ner- York, Dec g. 1874. SPHINX.