The New Orleans daily Democrat., 1877-06-23

lions i've years ago, may now be con
structed for about four millions.

lions i've years ago, may now be con
structed for about four millions.
| WILL 1T PAY?
Now, then, the important question
arises: Will the New Orleans Pacific
Railway, when completed, pay fall
interest or profit on the, say, four mil.
lions and a quarter, invested in its
construction English capitalists were
tempted to invest vast sums of money
in the rotten bonds OF Turkey, capti-
vated by six per cent interest; the ruling
rate Of interest In England is four per
cent, and English-American investors
are expected to subscribe heavily to
the four per cent loan of the United
States. Eight per cent interest on a
permanent safe investment would be a
captivating scheme in any country
shrewd business men will risk millions
on an investment which promises
ten per cent. At very low esti-
mate Of the business of the New
Orleans Pacific, it will pay its stock
holders fifteen per cent on their invest
ments.
The last report Of the Texas Pacific
Company showed that the net earnings
OF their road from Shreveport, in
this State, to Dallas, Texas, were
in 1876. $4,000 per mile. The net
earnings Of the New Orleans
and Jackson road, we are unoffi-
cially informed, amounted last year to
$4,000 per mile. The Texas and Pacific
last season transported 250,OO0 bales oi
cotton, 10000 Of which went by rail to
st. Louis and the East. The earnings
OF railroad from New Orleans to the
eastern terminus OF the Texas Pacific
would certainly earn as much as the
Texas road. It would share four
ffths OF the business Of the Texas road
and draw large trade from the coun-
try east Of Red River and an immense
patronage from southwestern Arkansas
besides this, 1t would develop q large
business along its line. This is an i'm
portant item In the estimate. since
seventy per cent. of the business Of
many roads is local business, created
along their lines. In this connection 1t
is important to observe that the New
Orleans Pacific, when built, can be
operated at much less cost than the
Texas Pacific. Owing to the heavy
grades Of the latter road, forty ton To-
comotive can only draw train OF fifteen
loaded cars while the engineers affirm
that the grades Of the New Orleans
road will enable such locomotive easily
to draw train of forty-fve loaded cars.
Thus, II our figures and statements are
correct, and we believe they are, it is
evident that the New Orleans Pacific
will earn as much per mile as the Texas
Pacific; but let us say in round num-
bers six hundred and forty five thousand
dollars. or about two thousand dollars
per mile, or fifteen per cent on four
millions and quarter Of dollars.
We present these statements and
figures to the public because we believe
them to be fair and reasonable, and we
do not believe they can be refuted. In
deed, we think they do not tell the
whole truth. We believe the road will
pay much larger profit than we have
worked out; but we would rather make
an underestimate than an exaggerated
one. Be that as it may. our facts and
figures are before the public for exam
and we hope that every man
who has the progress Of New Orleans
and the prosperity of the State at heart
and a dollar to invest, will examine
and scrutinize this article and talk to
the engineer, the president and direc-
tors Of the road, and with his fellow
about this enterprise. The road
Is essential to the commerce and growth
Of New Orleans and it offers an oppor-
tunity for the profitable investment of
several millions of dollars. Why, then,
should 1t not be built?