The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-19

world, ana Is less imam the TWO cents
mile charge enforced by law Oh the New
York Central corporation. 1t is sufficient
answer to this reasoning to say that if the
New York Central Railroad trains ran all day
on trips of ''nearly nine miles, and carried
an average of about $4,000 passengers in
day, they would not grumble at the legsla-
tive restriction even if it were one cent or
half cent a mile. The much abused horse
car companies might as fairly cite the usual
charge for hack hire as q proof of their
great liberality in carrying passengers
from the City Hall to Harlem Bridge
for the low fare of six cents Be-
sides, while five cents for passage from
the Battery to Harlem is certainly remark
ably cheap travelling, it must be remem-
bered that where one passenger on the
Third avenue line takes that through trip
very large number go shorter distances and
each space in a Cur may average three occu-
pants on each trip. realizing in fact, fifteen
cents for the entire distance.
After all. the reasonableness of the price
Of an article to the retail purchaser depends
on its wholesale cost and on the profit real
lied by its sale. If the fortunate capitalists
who have secured the stock Of the New York
81" Railroad can make four or five times
larger profit out Of that investment than
they could out of any other business
and yet charge only five cents fare
from the Battery to Harlem, then ten
cents fare is too much to take from
the people. This is especially the case
with the IL" railroads, inasmuch as the
rapid transit charters are valuable fran
chises given almost gratuitously to the
owners, who are, therefore, under obliga-
ton to run their roads in the public inter-
est and for the public benefit We can
form some idea of what the profits of the
stockholders will be from an incidental
statement in the presidents report. Mr..
Field says that the five per cent of annual
net profits which, by it's charter, the New
York IL" Company is required to pay into
the public treasury will, at this time. with
the present receipts of the road, yield to
the city from $25. 900 to $50, 900 year.
This shows a net income now for the COM
pany of from $500. 900 to 5000, 900 year,
equal to an annual dividend of from ten to
twelve per cent on the par value of the
capital stock of $4,000, 900, which, Mr..
Field says, is mainly owned by fifteen
lucky individuals.
This is, however, only the starting point
of the enormous fortunes in store for the
stockholders. Mr.. Field admits that the
managers of the Third avenue line had no
conception of the large business that was
ready for them and were not prepared to
meet it, The tremendous food tide" took
them ''off their feet" They have not as
yet been able to procure sufficient num-
Der of cars and locomotives to transport all
road, but the deficiency is about TO be
supplied. the terminal facilities and
switches and pockets for way trains are to
be increased, and then the trains are to be
run at much shorter intervals and greater
speed than at present. This will no doubt
very largely increase the travel. Besides,
the expenses nre necessarily heavier at the
starting Of such an enterprise the impor-
tant City Hall branch is not yet opened. and
the net income, which is now, Mr.. Field
says, piling up ut the rate Of from $780, 900
to 100000 year, ought within the next six
months assuredly to be nearly or quite
double this amount A net income of from
$1,OOO,000 to $1,000, 600 year would
yield the stockholders dividends of from
twenty to twenty-four per cent if they had
paid par for their stock. But the large
owners are said to have bought in Mt prices
varying from fifteen to forty per cent
for the greater portion of their
stock and from twelve to thirty-fve per
cent for bonds which draw n full seven per
cent interest If we average the cost of the
bulk of the stock at fifty per cent the fif-
teen wealthy gentlemen (of whom we sup
pose and hope Mr. Field is one) have paid
Tor their two-thirds of the stock abont
81, zoo, 600, and will draw from the road the
handsome income of from 500, 900 to
$500, 900 year. This income will more
than pay for their stock in three years and
leave them still in possession of that very
valuable property free of cost, to say nothing
of their bonds, which, if they cost them on
an average thrty-three per cent, produce
for them twenty per cent on the amount
actually invested. The certainty that these
large gains are not illusory is shown in the
fact that the stock which was bought by the
fifteen owners, it is said, at an average of
certainly not over forty-five per cent, would
now realize them, if sold, more than
So, 600. 900 for every $1,000, 600 invested by
them.
We have always feared that the tempta-
ton OF just such glittering. seductive profits
might have the effect on the New York