New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-09-11

''"'''"''
In this account, where the rate of interest is
not stated, il is estimated at only six per cent.
All debt is included, however, floating as well
rs bonded, for every one knows that, directly
or indirectly, interest has to be paid on debt
carried, and usually a higher rate on floating
than on bonded debt. Thus it appears that
for these leased roads the rental actually paid
is S3313,949, but thei. net earnings were only
So. O47, 791, so that they involve the Delaware
and Lackawanna in a dead loss of 81 ,266, 5S
yearly. That this calculation iG close to the
truth appears from the official report in which
advances TO leased lines are acknowledged
amounting TO S;l,244,S60 IL in 1875. The
greater part of this harden is in the Morris
and Essex lease. which colnpcls the payment
of 7 per cent dividends on stock at the rate OF
over 1927, 900 per mile, besides interest at
per cent on bonds at the rate of over Sl5l 1000
per mile. The road was built, i'll part with
double track, for less than T9600,0OO. Yet
this road is actually mortgagcd for $3s 600, 900,
and the issue OF more than $20,000,000 in
bonds. besides those now outstanding. has been
authorized. The object of this peculiar lease
may presently appear.
Having dead weight of 81 ,266, 15S yearly
to carry in its leased roads, tie Delaware,
Iackawanna and Western also has outstanding
bonds amounting to -, S3l 100 and debts
amounting to $3,923,0 S5 SO. The company
icp0rts interest on lis funded debt only at
S2S7 434 81 Whoever plcases may believe
that this company is smart enough to owe
nearly four millions more without paying any
interest thereon. Sensible men will prefer 70
8 "a, . H., M.
least rs much us the "funded debit namely,
7 Fer cent, or Si72,723 for the whole. The
total burden to be met therefore, in excess of
all earnings OF leased lines, before stockholders
can get a cent, is tl,73S,95l. This sum, de-
Quoted from the P3,8I4,G39 already shown TO
be the actual earnings OF the Lackawanna it
self, leaves $2,075,9S8 ~ Che actual profits
last year with coal at monopoly prices. The
road pnil 10 per cent dividends Oh go, $50, 900
of stock it follows that il did not earn these
dividends 10y about $4,000. Where did it
yet the money! Three Morris and Essex
bonds TO the amount Of ~, 634, 135, have
been issued, and are included Ia the statement
of that company, january /, 1876. though not
included in the general balance sheet for
"Dcccmbcr -, 1872 found in Poor's
Manual in the Delaware, LGcAawanna and
Western statement.
If this company could not earn IFS dividend
with Il monopoly To fix an arbitrary price of
coal, what is to he expected nowi Last year
II soH abont 3, 100000 tons of coal Cor 3d.
754,757 20, or about 81 Oh per ton, besides all
charges fof transporting it. The freight
CHARGES were 80 442,Si9 81 for moving 220-
1922 tons one mile, OF about "A cents per
ton PEI mile, aud the same year the actual cost of
transporting freight on the Pennsylvania road
was less than two-thirds OF one cent PEE ton
per mile. The profits of the company were
thereto at least li2 cents per ton per mile,
or, IN 100000 tons Of coal carried an aver
age of So miles. about $685. 900, besides
Whatever part of the $l3,75l,757 obtained by
sale of coal was profit. But now we have coal