The New York herald., 1875-11-19
FINANCIAL and COMMERCIAL.
An Important Railway Review by Michigan
Official-Thc Stock Market Firmer.
GOLD la Ia A la Sd.
Rag Currency Worth S7.14-MOney on Call
3 l-2 and 4 Per Cent-Governmen and
Investment Bonds Steady.
WALL STREET,
Thursday. Nov. 1876 P. NJ. !

Inc tnird annual report OF SIepnen p SoSSi ~'
missioner of Railroads for Michigan has just been Is
sued, and presents facts and points OF An insuo"o
and interesting nature. We quote-
'sThe miles OF road owned by thirty-fo corpora
tions doing business reporting this department
are 527S, OF which 3l4 miles lie within this State
or the above there 44S4 miles of main line and
s3l OF branches There 30i miles Of double track
and S9S miles of sidings.
.sThe average number OF miles Of railroad constructed
per year this State for the last years from 1865
TO 1875, the period which has marked greatest
tivty railroad construction has been $50 miles the
greatest number Of miles built In any year being
eol in 1872 This rapid construction of railroads has
gone until find that in the four southern tiers OF
counties of State embracing IL s94 square miles OF
territory and population according to the census OF
1874 of 9e7 7Ol we have 1888 miles Of railroad. This
Is equal to one mile OF road to every AT Inhabitants"
For proper understanding OF
THE ovRRBuILDISG OF RAILROADS,
which is here described is only necessary to remem
Der that Massachusetts has one mile OF railroad to every
BS2 inhabitants and Connecticut one mile to every GIL
inhabitants 'sThc total investment roads repre-
ientcd by the paid stock and debt is $295 7 IT.
r $50 s62 II pcr mile OF road" The cost Of roads in
Massachusetts and Connecticut-nearly all double
mack-are reported to be respectively $45,077 and
b4 0S3 per mile Thc total Indebtedness has increased
per cent The gross earnings for the year of
Nj the roads doing business in this State
s45 $50 49, $s l79 "a per milo of road operated
decrease compared with those OF 1873 of 81 $50 ora
691o0 per cent
Thc total expense OF operating roads during the
$50 543, 24o 49, or S. 442 So per mile, de-
crease compared with 1873 OF $3 o1s 1885, The total
Interest liability OF our roads Is approximately
$40 9o4 400 46 of which $S6S445 46 was reported as
paid during the year, while So 23l, ,o44 70 remain un-
paid If now, add to the expense of operating the
interest which accrued during the year. have the
Total cost OF operation and investment Sal AL T39 35
"But out of the thirty -four corporations doing busi
Less in this State fourteen failed to pay either the
whole or part of their interest Eight companies
failed to report any part of their interest paid,
which for these companies amounted 70 $SS0,090.
The gross earnings the year being before
toned s4 "a the total of operating expenses
$30 5 49 49, and the total of interest $40 904 AGO 46
we have, as the net income resulting from the years
business 81, $40 80, sum equal to S795 OF per
mile OF road operated and 2 per cent the paid up
capital stock. As compared with the previous year,
NE net income shows falling off OF $l2s, 563 "a or Is
per cent As surmised in my report for 1873 there
has been q general and steady reduction in OF
freight during the year, among the most notable Of
which will be found the reports OF the Lake Shore and
Michigan Southern and the Michigan Central The
iuction OF the average rate the Lake Shore and
Michigan Southern from $500 to ls.10O cents per
per mile decrease of 1851 900 of cent per ton
per mile caused loss the net earnings of that
pany Of ST. $40 07e So than per cent upon its
entire capital stock The report of the Michigan Cen
trail shows a still greater
REDUCTION IN RATES,
being from 57-1Oo to $40 cents, decrease of271o0
OF cent per ton per mile.
.'The report OF the Detroit and Milwaukee shows q
auction Its through business from 9 ITO milS to
6l0 mills per ton per mile. Tho results of this re-
iucton of rates may be by casual observer
pf our railroad system First it has had the effect TO
deprive the stockholders OF any dividends their
vestment; second 1t has compelled the companies 10
improving their property, by such additions as
double track and steel rail-improvements impera-
lively demanded in order that the companies may be
able 10 successfully prosecute their business only
in their interest but for the interest OF their
PATRONS and third, it has brought about extreme
reduction in the expense of operating the roads, Is
shown in the case of the Lake Shore and Michigan
Southern their operating expenses being 81 594 226 9s
less in 1874 than in 1873 Now while this may be to
beneficial the fact must not be lost sight
pf that although the rates for carrying may continue
decrease, the expense OF operating must find some
INIT beyond which it cannot be reduced. The expend-
lures for repairs and permanent improvements may
DC cut of for single year, it may be- but the property
must eventually receive such care as to bring the
lverage to the OF healthy and vigorous opera.
lion.n
The Commissioners suggestion that "the rates for
carrying may continue to decrease has found early
vercation in the report of the Lake Shore Company
for tho first six months of 1875 which shows that the
l.I
2l 900 cent decrease from the average rate of 1874
Il lS-10O OF ITS 1000 OF cent.
MARKET
Despite decided nrmness in the morning hours,
there was strong tendency in the stock market to
advance backward later in the day. Consequently
bears arc lively and entertain idea OF hibernatng
Just now.
The Panama Railroad business almost the only
topic which broke the monotony Of u sluggish market
There is something peculiarly appropriate in steam
ihip company being the publisher of "Tale for the
harlnes" for less credulous body OF could be
expected to swallow the gorgeous estimate OF
earnings set forth by the Panama Railroad
special committee Even member OF the above
hybrid corps would gunaw at the notion of a steamer
performing the service and earning the as put
down in the statement The subject is altogether too
absurd to be treated otherwise than a cannrd fully
nedged and feathered.
There has been no little game in Union Pacific for
the last two days and neither pea professional has
been seen in the vicinity Even the silverongued but
podgy operator, whom the brokers have dubbed with
the appcllaton of "Sankey,n kept aloof from cause
unknown, though ill.natured people do say that
be is engaged in preparing for one Of the finest
leronautic displays the board has ever seem
In opposition to the other fancles, Western Union
Telegraph exhibited obstinate reluctance to fall
which enabled it to at the close the highest
Ggures Of the day The coored gentleman We alluded
10 some days since appears to have taken up his resi-
ience In some one the partitions of the new build
ny for the conundrum IL propounded, How Is II that
ln eight per cent stock like Western Union should be
selling 20 when other securities, paying the same dv
dend, bring par and ovcrf" Bears in the STOCK wno
clever tgucssing riddles, affirm that the true an
wcr is to DO found in the that the last two dv