New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1876-01-14
BANKING AND FINANCIiL.
RAILROAD EARNINGS.
INaF TIT ~ -
'dffOr Of me IrtOuae.

10 the Editor Of me Trt6uhe.
SIR: The disastrous war between the railroads
running eastward from Chicago which involved
nearly tho whole railroad system of tho country.
has come TO an end. 1t was about tire. NOln of
the railroads made any money during the iir3t miro
months Of the year 1875. The weak once, either
through n want of traffic, from being too heavily
loaded with fraudulent issues Of bonds, leases and
the like, as for instance the Erie, Toledo, Wabash
aud Western, and a score Of Others which might be
named have been driven 10 the wall, and with here
and there an exception those which have been able
to stand the racket may ROW be regarded as sound
institutions, reasonably well compensated by oN-
peyleuce for the losses they have sustained During
the last throe months the railroads have been re-
ceiving largely increased rates, eastward-bound
business which from time TO time have boon harden
ing until 1t may bo said they now at . standard
profitable to themselves and equitable to the public
whilst tho economies which they have boon COM
poed 10 practice b. reason Of he p3ncty Of receipts
Together wtth the greatly reduced cost OF labor 3nd
materials have really placed them ia better con-
dtion than ever before Rates both cast aud west
are established ulon permanent paying basis; The
different lines working in harmony, and preiic-
tons may now safely be made as 10 the prospective
earnings for the year 1876. Take the principal lines
running eastward from Chicago: the Michigan
Central. Pittsburgh, Fort Wayne aud Chicago, and
Lake shore and Michigan Southern. Without any
increase over last years volume of bujlness the
excess OF present rates. those in force during Tho
first nine months of 1875, viii add 10 the earnings
of the Michigan Central, eleven hundred thonsa1d
dollars rsll0O,00O) per annum; 10 the earnings #
the Pittsburgh, Fort Wayne and Chicago, eleven
hundred thousand dollars tTi. 100000 per ?nnln
AMI to the earnings of tho Lake Shore and Mehigon
-. mil fnup hundred fieUe aud
dollar. fF3 100, OO0) per auuum. This increase win
accrue entirely 70 net earnings, because, the volume
Of business remaining the same increase IN the
amount Of receipts does not necessarily involve an
increase iuthe expense. So far as the Lakt~'hom is
concerned the recent report of President Vanderbilt
forcshadows a great reduction in the aggregate Of
the expenses on that line nasmuch the steel rails
-15OOO tons-to be laid in the year 1876 are
already provided aud paid for The centrally located
Western yoals. especially those leading eastward
from st Louis viii he quite as fayorably affected
he the Termination of hosllites the lines leading
fco,n Chicago Take the Ohio and Mississippi for
instance. The increase in rates will enable that
Compauy 10 renew is dividends on The preference
shares al an early day and have handsome surplus
loft On the whole, the outlook for railroad pop
critics in the year 1876 ID far promising than at
the opening OF any previous year Tor long period.
II il safe 30 assume that shall see no more RAD
road wars such as that which has just been ended,
and that the country will not be disappointed in s
authorizations of increased trade and travel which tho
Centennial year gives high promise Of Instead oil
prodcating the business of tho railroads for 1875
upon the basis OF 1872 the probabilities are t5at
volume both of passenger and frci sht business WI
be much greater. RAILROAD.
Aec- Io.k, Jan. 10, 1876.