The Bossier banner. [volume] (Bellevue, Bossier Parish, La.) 1859-1952, 1880-10-07
Railroad Profits and. Power.


San Francisco Chronicle.l
The net earnings of the Central
and Union Pacific railways represent
over six per cent per annum on a
capital of $500, 100000. The actual
cash investment in the two roads,
including rolling stock and depots,
can hardly exceed 5000, 900, 900. The
net returns on that amount of CAPT.
toll are equal to 20 per cent per an
mum. In addition to this the CON-
panies are constantly realizing on
their land sales, and from this
source their returns will continue to
increase for many years, as their
lands will come more and more in
demand in proportion with the ex.
tension of settlement westward and
the consequent absorption of the
public domain. On 443 miles of its
line that was in operation during
the year 1879, the Texas Pacific
realized net profits of 81, 045, 900, or
about $3.50 per mile. The average
cost of these 443 miles of road,
including rolling stock, did not
exceed $780, 600 per mile, and the
company's land grant will more than
pay the whole bill. The farther the
road is extended westward the bet
ter it will pay. If the cash invest
ment is worth 10 per cent per an.
sum now, it will probably exceed Is
per cent ten years hence.
The Northern Pacific has a land
grant of 100000 acres. It has
sold part Of this grant along the
Eastern division of the route, from
Bismark toward the terminus on
Lake Superior, at rates not below
% 50per acre; and it is now adver.
Using for sale the agricultural lands
in the Pen d'UreiHe division at %
60, if paid in yearly installments,
one.fourth down ana enc fifth each
year for four years-at the rate Of
81 per acre. For land containing
springs, or coal, or iron, or timber
higher price is charged. The timber
and coal lands of the company lying
along the Western end Of its route
for $50 miles are worth an average
Of $15 per acre. The average of
81 so per acre for the whole grant
of 100000 acres is very low. It
would yield them the enormous ag
gregate of Sl12, 500, 900; which is at
least $25, 900, 900 more than the road
will cost, including its rolling stock
and depots. AS it penetrates a
country rich in agricultural, timber
and mineral resources from one end
to the other, and therefore sure to
be rapidly and densely peopled, it's
traffic within ten years after it's com.
pletion may safely be estimated as
equal to that of the Central and
Union roads new; which would give
net earnings Of $1S,OOO,OOO and
yield dividends equal to IL or Is per
cent on the actual cash investment.
No other business in the country on
so large a scale pays like this; and
it is probable that the great trunk
lines and extensions East and West
yield returns of not less than 10 per
cent per annum on their actual cash
cost, with constantly upward move
mcnt as the lines Of settlement and
production advance. In the light of
these facts it is something more than
a metaphor to call the men who con-
troll these vast properties RAILROAD
kings.7 A combination OF. interests
such as these represented by Gould,
Scott, Vanderbilt and the Atchison,
Topeka and Santa Fe Company is
incalculable, politically as we'll as
financially. Looking toward the not
far distant future, when the lines of
these roads shall have been extend