Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1876-02-10

For the extension Oh Inc line.
The gross earnings are estimated at
low figure, while the operating eX-
penses are placed at so per cent, that
being the full average for Narrow
Gauge Railways in the United States.
The estimate, S710,000 for the cost of
the first II miles, is full, as this portion
OF the road is over a very level and
cheap country for construction.
If We estimate the gross earnings for
the first year at only Sl50,O00, and the
operating expenses at 80 per cent, or
S75, 900, we have 10000 left from which
tu declare dividend of 10 per cent, or
S7l 900, and still have surplus of
81 900.
E-timating the distance-DaytOn to
ChiiicOthe-at IL miles, and the gross
earnings at $500, 900, the average earn
inss per mile would be 81 .2Si, while
s. 600 per mile-a low estimate-would
give S3355j, 900 AS the gross earnings.
Deducting 80 per cent as operating
expenses, leaves Si77 800 as net earn
InsS.
D .duct 10 per cent rs dividends, and
we have Sl06, 800 Tor the further eXten-
sion of the line.
Estimating the distance-Dayton to
Gailipolis-at l45 miles, equipped gives
total cost of 81 ,740,0 ,000. Placing the
earnings at $1,000 per mile-a low esti-
rnate-Would give II total gross earn
ings OF S725, 900.
Deduct 90 per cent for operating ex-
penses, leaves $685., 500 as net earnings,
or q per cent on the capital stock.
These estimates of earnings are pur-
pOsely made low, as the company pre-
fer to under underestimate, rather than
over-estimate its business.
The operating expenses have in each
estimate been placed al so per cent, nj
though Narrow Gauge Railways are
practically demonstrating that they
can be worked as low as As per cent.
The Company have deteIniiDed to
! construct 3 loot gauge road, for the
rta- -OnS:
First-That it will cost less than one
third as much rs the standard gause
roads of feet 8! inches have actually
cost, and less than One-half as much as
they should have cost.
Secund-BecauSe its interest account
(if any will be less than One-fuurth as
much as that of The standard-gauge.
Third-Because, as practically demon
strated by Narrow Gauge Railways in
Actusl operation, the operating eXpen-
ses will be % per cent less than that of
! the more costly road.
Fourth-Because the first cost will be
only $4,000 per mile, as against $54 900
per mile, the average cost of railways
| in Ohio.
F,nh-Because from its small cost,
light operating expenses, and greatly
reduced account, (If any, it can affOi d
rates that will give Il good margin for
profits, but which any standard gauge
road adopting, would lose money.
Sixth-Because tine Narrow Gauge,
Offering lower rates than the standard
gauge, (on either side of it) can posi-
bly, do, without loss of money, will at
tract capital, will invite immigration
to its section, will draw the manufac-
turer to its line,and because i, will Civ,
to the farmer, merchant and Inanufic-
turer. lower rates than can he obtained
10y their competitors on neighboring
standard gauge roads, and thus give II
greater impetus to all Interests than the
standard gauge with its great cost, and
necessarily higher rates, coull possibly
do.
Because the low rates oi
| tiit 4NhiioW tauSC wiz ot'ihOiutN WV
interests, aud develop dormant ones, Ia
nuch greater extent than the nPcps.
sarily higher rates of more costly
road could do.
Eighth-Because the large saving in
fist cost, interest account, and opera
ting expenses, together with the saving
in rates, would, if saved, com pounded
and aggregated for II period of twenty