The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1879-01-30
SOUTHERN RAILROAD
Interesting Report of the Investigating
Committee.

The Committee, consisting of James P
Kilbreth, Fred. J. Mayer and Chas W.
Rowland, who were appointed by the Sink.
ing Fund Trustees and Board of Public
Works to investigate the expenditures OF
the city's 100000 in the Southern Rail,
road, have concluded their report.
The Committee spent almost year in
the work, and their report is a lengthy and
a full one. From 1t We take the following
extracts:
The first detail work performed was the
examination of the books and vouchers in
he office; then the record and details OF
legislation, preliminary surveys, the issue
and sale of bonds, rights of way, estimates
of cost, location of line, contracts, ETC.
We have found no evidence of corrupt
use of money in procuring legislation. The
entire cost was $24, ,920 O9. Considering
that it was obtained in Congress and three
States, and that so much time was con
sumed by unavoidable delay. we can not
regard the expense as cause Of just com
plant.
The change of the rate of interest on the
18th of March, 1874, from TO 3-10 per
centum seems to have been adopted with.
out discussion, and the important conse.
quences resulting therefrom do not appear
to have been apprecia ed by the Board.
The simple addition Of three-tenths of
one per cent. to the interest on the nine
million three hundred thousand dollars
($9, 300, O00) thirty-year bonds, negotiar ed
through the American Exchange National
Bank and Kuhn, Loeb e. Co., compounded
at the rate of six per cent. amounts to the
startling sum of two million two hundred
and five thousand seven hundred and sixty
four dollars and lightweight cents ($2, 205,
764 9S) or an average annual addition of
seyenty-three thousand five hundred and
twenty-five dollars and fifty CentS{ $73, 525 50)
to the taxes of the city.
The entire cost of land bought for right
of way on about three hundred and eight
miles is $697, ITS 90
The Sinton Road cost $500, 900. The right
of way on the twenty-three miles was only
two-thirds the width of the three hundred
and eight miles, but the land has more
than an average value per acre. The value
of the right Of way for the twenty three
miles adopted, on same basis as cost of the
three hundred and eight miles, is $52,-
06l 65.
These calculations show that the cost OF
the right of way, and the graduation and
masonry of the three hundred and eight
miles, at the same rate per mile as the Sin
ton purchase, would have amounted to
only 81 OF ,39l 80, instead of the actual
cost of $40, 46S, ,497 30.
A comparison of the grading and masonry
on the three hundred and twenty-one sec
tions disclosed the fact that the original es-
innate was six millions three hundred and
sixty-seven thousand seven hundred and
tiftv-nine dollars and eighty-seven cents
($6, 367, 759 81, and the work actually cost
nine millions six hundred and eighty-eigbt
thousand eight hundred and eighty-fve dol
lars and thrty-nine cents; being over fifty
two per cent. more than the original es j.
mate of the Engineer.
The work done under the supervision OF
the Trustees cost one hundred and seven
thousand and six dollars and tifty-fye cents
| ($107, ,006 55) The work done by Boyle &
Roach in completion cost $246 294 92 The
totftost of the two sections was $4l8,-
993 50, being more than the original esli-
mate by two hundred and ffty-si thou
sand and nlnety-nine dollars and sixty-two
cents ($256, 099 62).
OF all the contracts analyzed only two,
embracing thirteen sections, were awarded
to the lowest bidders.
1t is the opinion of the Commission that
much more money has been thus far ex-
pended in the construction of the road than
was necessary, yet it will prove to be less
than the average cost of the wellbuilt rail-
roads Of this country.
The amount of interest paid out by the
City of Cincinnati on the SIG, 600, 900 bonds
1858, $50 due on the $40, 900 900 January 1st,
l879-is "a, 1876, 739 81. Should the pending
81, 600, 900 loan be issued at per cent. then
the interest to be paid annually by the
city on the $18, ,000 000of Southern Railroad
bonds will amount to 81 1854, 800.
The net receipts from the Common Car.
rier Company to January 1st, 1879, are
1851 .G67 go, and the total expenses $197,.
5l8 A. This covers period Of one and q
half years. Reducing the average receipts
| g. ,ro yaor tho cnpn no p.onn would uton,i os