The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1877-05-17

creased three and one-third per cent; tina
the expansion of traffic has not kept pact
with the increase of capital; but that, will
the exception of single road, there has
been large increase in the tonnage of min
erals transported, "the lines of least miner
al traffic showing the highest earning pei
train mile"
A comparison of the returns shows thai
the proportionate cost of working charges
that is maintenance of road bed, etc.
locomotion and repairs-incTeases with the
increase OF the proportion of minera
traffic to the whole traffic of the road
Thus, the Metropolitan railway has little
over two per cent. of mineral traffic, and
its working expenses are fifteen per cent
of Its gross revenues the Southeastern
has something less than four per cent. Of
mineral traffic, and its working expenses
are twenty-one per cent; the Brighton
with seven per cent. Of mineral traffic, has
its working expenses at twenty-four pei
cent; the London and Northwestern,
twenty-one per cent. of mineral traffic, and
working expenses twenty. eight per cent;
the Midland, twenty-seven per cent. OF
mineral traffic, and working expenses
twenty-nine per cent the Northeastern,
thirty-seven per cent. of mineral traffic,
and its working expenses run up to over
thirty-fve per cent. of its gross revenue
80 that, approximately, the working expense
increase about one-half of one per cent. of
the gross expenses for each additional one
per cent of gross revenue derived from
mineral traffic.
The effect of this mineral traffic on divi-
dends, and on the cost, in capital and work
ing expenses, is illustrated by the four
years experience of the Southeastern and
the Midland railways. Without giving the
figures contained il the ReDie,o, it may be
stated generally that in 1871 the Midland
had the larger traffic per mile, while the
capital expended per mile was greater on
the Southea7tern, and the proportion of let
traffic receipts to the capital was about
four per cent. on the latter, TO nearly six
per cent ON the former. In the four years
thereafter, on the Southeastern road the
cost capital per mile had Increased two and
one-half per cent, while the mineral traffic
which in 1871 was over -four ner cent. of
the gross traffic, was in 1875 Only three and
three-fourths per cent.-so that the proper
ton of net revenue to capital increased
from about four per cent. in 1871. to over
four and one-half per cent. in 1875, being
an improvement in the value of the proper
ty of some sixteen per cent.
During the same period, the traffic reve-
nues on the Midland increased nearly thr-
teen per cent, and the proportion of rev.
enue from the mineral traffic increased
from twenty-three and one.quarter per
cent. in 1871, to twenty-seven and three
quarters per cent. in 1S75-an increase of
some twenty per cent. During the same
five years, the capital was increased twelve
per cent, 30 that the proportion of net
traffic earnings to the capital had decreased
from five and ninety one-one hundredths
per cent. in 1871, to five and fve-one hun
dredths per cent. in 1875, showing de-
teroration in the value of the property of
over fourteen per cent. Taking the two
roads together, it shows difference of over
thirty per cent. in the proprietary value"
OF the non-mincral and the mineral roads in
favor of the former in five years.
To this great increase in proportionate
running expenses is to be added the great
er proportionate number of train accidents
to which these mineral carrying lines are
subject. We have not the space, this
morning, to give the statistics on this point,
but 1t is enough to say that carefully pre-
pared tables show that the proportion is as
two to one on mineral traffic roads over
those whose principal traffic is from another
source. These facts and figures show, not
only why the stock and securities of the
Delaware and Hudson canal company
have so enormously deprecated during the
past year, but why it has been 80 much for
the interest of that company to enter into
combinations with others for tho purpose of
enhancing the price of coal.
The Delaware and Hudson is essentially
mineral line. Its profits have been de-
rived from the carrying of coal and the
vast extension of its line, by leases and
otherwise, has been made with the sole
object of opening up the market for coal
and thus increasing its carrying trade. Its
running expenses have increased out of all
proportion to Its enhanced capital and the
expansion of its traffic, and this has neces-
STATED an exorbitant price for coal in
order that the deficiency in Its net receipts
compared with Its gross receipts might be
made up. So long as coal was maintained
at high prices, 30 long its stock and secu-
rites commanded high prices because it
was enabled to pay high dividends. But
when the coal combination was broken up,
when it ceased to be a monopoly, the ex-
cessive cost of transportation eat up the
gross receipts, left no margin for dividends,
the collapse came, and its stock and secu-
rites go begging.