Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1877-08-03
tE. D. M,nsa,ld in Gin. Gaislts.)
Railroads OF Ohio and Their Present
CoudItion

ENilIO'u sNllhca dH'i H'lipN HauBeSt ~ ndN |
be interesting to Others TO show wirat are
the re,tl elements and condition Of railroad
business in OHIO. Fortunately we can do
this exactly, In consequence Of the minnie
and al'o elaborate reports which the rail-
road compcnies in Ohio are compelled to
make. The results are not very encourag.
ing to railroad investors, anil show very
clearly why the compinies reduce wages
and why they combine to plpl their earn
ings aud Keep up prices. Let He-premse
two or three general fayts, whiclIwill show
the reader exactly how very much OF the
railroad delusion (for such there has been)
originated, aud how it has produced un.
fortunate results.
|. Firat, 1t wts assumed that the ori gin-
III capital, whatever it might be, was
enough; that Is, the railroad would be
finished like u bank, or n house, or II ship.
Whereas, in fact, the railroad is never fn-
ished il is continually adding to its cap.
ital. II long line OF railroid was made
las they all were) with one track, in few
wears the business OF the Country has 80
increased it must have two, and in a few
m,re (as in the case nf the New York Cen
with iron rails, and soon IL mus, have atcel
rails. II begins with light emhankmcnts
and light ties, and in few wears Is must
have heavy ones Thus whole genera
ton Is occupied In making railrond bps
fore the real capital OF the road il renched.
rhe rUld is worth no much more aud in
the course OF time will pay; but while this
is going on the road Is covered with mort.
gayss and passes into the hands OF other
parties.
9 The same :hing is true et, ll.- 80
penscs. Ii il assume | from experience Nv
the beginning that the expenses must hc at
certain ritc, say 80 per cSnt.; but, ~ the
business increases the expenses increase
still more, aud the company which calcn-
lates on its 10 per cent. net profits finds it.
self with only 20. For extmple, the
Cleveland, C,lumbus, Cincinnati < Indian.
apoli. Road is one OF the very hest railroads
in Ohio. It's length in Ohio il 30j miles;
its total earnings are S3,054,000, aud its
net earnings S732, ,00O that is Just q per
cent. net. aud that is only A per cent. on
its cost. The CINCINNATI, Hamilton & Day.
ton made but % l'er cent. Of it's earnings
net, but that was all absorbed by interest
on debts, so that the ultimate result was
minus. The Cleveland & Columbus Road
had to pay S447, ,00J interest, but was able
to pIy the 3 per cent. dividend on the en-
tire stock, and this is one OF the very best
OF our roads. Promising these general
facts, let us now look into the actual fnan-
cial condition Of the roads in Ohio. There
are ffty.six railroad companies in Ohio,
exclusive of the new narrow glIage compa-
nies. OF these, the legal condition b;
IN the hands ut rrcivers. -. .se....
Leased tn other ifnuInies ......., ..,s5... q
In their own hands ...,....... .......2g
This statement shows their fiRncial
condition without further comment Eep.
en- railroads in this State, those amna the
hest, are leased to the Pennsylvania Com.
pnny. Sir are leased to the Biltimore
Company. Ten are leased to other can,pa.
nleS. The best roads in the State. and.
with two exceptions, the most productive
are leasel to the Pennsy ylyania and B tlti
more companies. The only roads operated
by their owners, and profitable, are The Co
lumbnS & Hooking Valley, and the Clcve
Land * Mihoning Valley, the former of
which pays per cent. dividend, the latter 5.
ltshould be observed here that bothale coal
roads. The Hooking Valley transports
$4,000 tons of coal per annum. Now let
ns look into the aggregate oi their iinan
cial accounts. OF these fifty-six road.
eight (including the Hamilton & Davtonj
were operated at a loss. and thirteen com.
ptnies paid no interest on their bonded
debts. The aggregate OF all their receipts
and expenses were:
Gross recrips in 0hio.... .........$3Il otq
Operating expenSes'.'' .'''......... ~ AO4,5 S
Ne. r.coln.. .o7.-. -.
This makes the margin OF the receipts
saved. % per cent.
The total cost OF the roads, including
all debts, WAS $3l7 ,222, ,232 The reader
will therefore see that the whole railroad
property Of Ohio pays but 3 per cent. But
ii we suppose the stockholders get that,
VIC shall be very much mistaken. OF the
total cost, Sl60,000000 is debt, OF which
the least interest is 6 per cent; so that
more than the whole net receipts of the
roads is required for the interest on debts
81 that III the aggregate the Stockholders
get nothing. There are IL 600 stock holders
in Ohio, hut they have nolhing to do with
the management of the roads, which il
practically in tile hands of the bondholders.
This Is an unfortunate state OF affair." Sew
enteen of the railroads in OHIO are in the
hands OF Scott and Garrett This il one
great cause Of the strike and the difficulties
with the roads The property of the
roads controlled by foreign bondhoIders is
put IN the hands OF agents who have no
interest in the State Of Ohio. Two men
controlling seventeen railroads in Ohio is
the practical result Of the almost tula!
neglect With which our Legislature has
treated this subject. Ohio was thegateway
through which all the trunk lines between
the East and the West must pass. Yet, in.
stead OF holding that gateway in o,ir own
hauIs Ol,io hna 1alii, al, q.
to Scott and Garrett The resumption act
presses on the Interests Of these men, as il
does on the whole country, and they trv
to make 1t up by cutting ntf the wages oil
the laborers. That il the point exactly,
and il we are to continue the resumption
act and keep the railroads in the haniIs of
foreigners, then yon are only at the begin
ming OF the end. The employees Oh the
roads ot Ohio now number nearly 10000,
hut large number are running on the
whole lines TO Chicago, Philadelphia, In.
diannp0lis, etc. Some of the prime pie
lines have lin Ohio) ne follows:
Atlantic 4 Great Wpstern........ ......235O
Cleveland, Columbus 4 Cincinnati. -. % 57I
Lake shore ....''.' ......' ....3 1879
Marietta Cineianat! -. ............ Il 5Ss
Pilsbnrg Cincinnati. ............2 2 O60
The whole of the Lake Shore has 10. 900
and the whole Otthe Pitisburg, Cincinnati
& ST. Lonis 6,000. Whea We reoollect
these are able bodied men, and the numl,er
oi friends and connections they have, it is
evident there is a large populatiOu inter
eSted, directly or indirectly, in railroad
work
Let as aow turn 10 tho work done by the
railroads in Ohio, 1t is immenses
Number Of "a sssr gers... .ls.l7s 96I
Tons Oi ireight'''' ''.' 80" %, ,3iS ,7B0
The number of passengers is six times
the entire population oil the State, and the
amount received for freight is double thi.
Tor passengers.
The analysis Of the freight shows some
curious results. Thus:
Coal carried. T,3J6 95I toms 25 OF pet cen,
Grain, ahur and
other az grieul-
tural products. G, ,23s ,BI2 tnns, 2. 81 nsr cen,
Merchandise. "..2 80 25T tons 767 u.r crnt