New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-13

Was this amount earned in the six months to July
1, 1851 Estimating the net earnings OF the
road for tho ak months 80 July l. 1876, TO bear the
same relation to coal tonnage as those OF 1873.
629,4Ss tons at 81 10 per ton would give only
1891, 1925.
Statistics Of coal production in Engineering and
Mining Journal of July 8, 1876, give TO the D., l.
and w. K. r. Co. for the six months to
July l. 1876 629,4SS tons of coal, or AZ
per cent Of the amount reported In the cor
responding period of ISIS, and the coal tonnage.
which in each of tho above four years was about IS
per cent Of the whole, seems TO furnish the only
basis accessible to stockholders the public fof
estimating the probable net earnings.
Now, as to the future prospects of the road.
In The Engineering and Biniag Journal of Sept. 2.
1876, is the following comparison Of New-York
prices for eoal
Ay:sss aasSa s E S q tom
Reduction. 81 20 per ton
II is said that the Delaware, Lackawanna and
Western Company intends to continue sales at auc-
ton but unless better prices can be realized it ID
plainly to be seen THAT the shrinkags Of 80 so per
ton will wipe out the whole net earnings Of the
pany leaving nothing at all either for dividends or
rentals and interest.
A shrnkagc Of only rs cents per ton on the amount
of coal carried in 1S75-3,f04,242 tOns-would
amount to 80 $50 900, equal 10 10 per cent ON
the capital stock.
The cost of mining and loading on cars is about
81 rs per ton Royalty. charges for transportation,
and niddlemeIrs profits under the combination.
swelled this amount to So so before the coal reached
the consumer.
Suppose the cost of mining is reduced IS 20 per
cent the difference of from IS TO 20 cents per ton
will not materially diminish the great loss Of profits
to ooaI-caryng companies, occasionedbyth shrink
age in the market value of coal.
The ratio of operating expenses. including taxes,
on main llue of Delaware, Lackawanna and West
ern in 1875 as reported was very small. The ratio
on Philadelphia and Reading in that year was 81
per cent Lehigh Valley, 81 per cent Central OF
New-Jersey, 80 per cent branches OF Delaware,
Luckawanna and Western, 81 per cent, and main
line only 80 per cent To meet the emergency by
any material reduction Of operating expenses below
50 small a ratio would seem to he very difficult.
Interest on stocks ard bonds of leased lines ard on
bonds of main line as they now stsnd-increascd
since JAN 1-amounts TO about IS, SOC, 900 per an
nam.
BY the last report to the Aultor-Ceueraf Of Penn
syvania il appears that available assets ON the LIST
of January were not sufficient to Offset the loating
debt.
The reduction of 50 80 per ton in price of coal
as indicated by the auction sales Of Aug 20, con-
timed through year. would involve loss equal to
the whole net earnings of the company.
As the cost Of mining cannot probably be reduced
more than 25 cents per ton, nor the operating ex-
penses of the pain line much below the 80 per cent
basis of last year. the only remedy is TO advance the
price Of coal An advance in the price 10 50 90 per
ton or 81 above the prices realized az auction sales
of Aug %, would appear 70 be necessary TO enabs
the company make net earnings sufficient to pay
rentals and interest, but nothing toward dividend
on stock.
Can this advance be obtainedi The average price
realized for Scranton coal at auction sales in July.
1872. WAS about SO 40 per ton Since that date
everything produced in this country-cxcept An
thracite coal-has fallen in price, Manufactured
goods iron and steel rails, locomotives, cars real
estate, rents &C., are lower Manufacturing inter
ests are depressed. Whyf Because the capacity to
supply exceeds the demand Is the Anthracite coal
business exempt from the operation Of this lawi
The company are said to have large property in
mining lands and the usual very liberal estimates
are made as to the quantity of coal beneath the sr
face of each acre. The value Of a railroad or mining
property 10 corporation depends upon its capacity
to yield annual net earnings. Interest on large in
vestments in mining lands that may not be devei-
oped for so or 100 years are heavy tax on che
profits of each year, and element Of weakness
rather than OF strength. CHARLES BARRETT
Eev York, Sept o, 1875.