Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1881-02-06

s me Of the business men of Knoxville,
who are the most familiar with the bust
ness of the city and the country On his
route and have made The probable bust
ness Of your road subject of careful in.
vestgation, estimate that the gross earnings
of the road will be fully Sc coo per mile as
soon as the road is put in operation. AL
lowing 60 per cent. for operating expenses,
this would leave $l00,s00 net income for
the road
With such prospect for business, bonds
of this road, for a million dollars, bearing
5 pr cent. interest, would be safe invest
ment. The interest on these bonds would
be $50 900, and the balance of the in ONE
W uld pay per cent on the sock and
| leave y surplus. This would be the case,
even if the bonds should bear per cent
iLterest
Whenever the railroads lea ling from
this city to the Carolinas and the South
eastern seaboari are completed the bush
ness OF this road will largely increase, and
make it 4 very important road. That this
would immediately follow the building of
your road. | have no doubt.
The AsbeviIle connection ard the road
to tue Gran berry ore beds are b ,th now un>
der tcucti0n. with promise of early
completion. and the Blue Ridge Railroad
also seems likely soon TO be put under con-
tract
Il is also rrobatletA at branch road will
be built from some point on the Cincinnati
Southern Railway on the plateau, to Nash ;
! vILle, which will, with you r0aj, make a
| very direct line from II shv lie to Knox
Vile. and add larg ~ to your trade.
! The main element of strength in the posi-
/ ton Ct your railroad is its imp0rtar CO to
! the iacinnati Southern Railway. Striking
that road Al l. noTy Gap, the nearest point
| to Knoxville, il becomes valuable feeder
EN1 L
Will pr0ba '!y be Its most in port ant branch
l. would seem reasonable to es innate
that this road would add onetlhird II the
amount of the present business of the Gin
clnnati oOutaern Railway, which would be
about ~, coo per mile for tho entire length
Of the road making 1915 900 increase of
gross earnings OF this su fully 60 per
cent would be profit, rs about one-third 9i
the operating ezpen es woulf be Incurred,
whether tqe road received this business OF
not.
This would give an increase Of the net
income Of the Cincinnati Southern RAilw ~
Of lbs. $50 per arnum, And with the Car.
oiina connections completed this would be
largely increased.
Such promise Of profitable return:
would seem to be q sutfic eat inducement
to secure the construction f your 70. d
without delay. But it is hardly probable
tt 1t the city Of Cine nnati will IN ertakt
the construction Of the branches which he!
; uthern road requires for tho develops
ment of lis Legitimate tr de. The city wIl
most ro5abiy leave the lessees 20 provide
tho branch roads and make sucn her con,
ne II rs as are desirabi1.
Under the terms Of the form of lease re-
Gently adopted by the Trustees Of the Gin
cinnati Southern Railway, and estir attn
the rental at the highest per cent in th'
proposal recently made by the Cincinnati
Railroad Company, the city would receive
an increased net income of S2Z. 800 pc
anEun from the business derived from tn,
Knoxville AZ CIncinnat s uthern L Ill
way, with business Us shown in the abOYt
estimates, without any outlay whatever OF
the part OF the city. And IN add iliOn t
his the city would gain the trade which
this new bdsine 8 would throw into th
city.
Now gu npose the lsgsees should take
half million stock in yOaT Railway com
puny, which, with the amount proposed t
be raised IN Knoxville and on thu route
would be q sufficient stock bSsi5. The,
would lose tho interest on their none.
| du- il. z the & Instruction of the road, ant
, have t. provide the additional rolling s.ocl
{ to transport the new business derived from
your road. Then, on the comp letion 0
your road, W th business as above estim ,ted
!, they mig ut expect to receive per cent. OF
their stock IN your company, and an anDua
increase Of their net earnings on the Gin
cinDati Southern Railroad Of 20 800. be
side the same amount received by the city
This shows Ia tue city Of Cincinnati ca
afford t give q favorable l.aSe to com
pany who vii! build the branch roads, All
that it will pay the lessee company to in
vest in the b..Eches.
As soJn as the affairs of the Cincinnati
Southern II Tread are pat in shape 70
them to undeitake the building Of b!a 7cl
!, 70 d. quite number of such roads will b.
brought TO their attention, and those com
muritles who make a good showing 70
business ant manifest their confidence il
their enterprises By # ring m tterial ak
wi no doubt receive the first responses.
The Importance of the city of Knox
VILE, as the ntral distributing point 0
the large trade of East Tennessee, with il:
wealth and enterprise, and surrounded as |
Is with such varied and valuable mlnera
deposits, and in productive country with
such healtbful aud pleasant climate
must attract a great deal of attention
whenever its transportation facilities arr
fully provided or
Its manufacturing int: ests, already
quite large, must greatly increase. II:
vast quarries OF marble must be far mOr'
: extensively worked, ana with the openias
Up of the great variety OF mineral wealth
through ut East Tennessee and the adj A
cent country. the trade of Knoxville will
? certainly make rapid growth and reach
very large proportions.
This railroad from Knoxville to the
Cincinnati Southern r ilway at Emory
Gap, which II have projected, seems t.
: command such gene al favor with your
citizens and to be so we'll adapted to tht
development # sour resources, that j
ought certainly to be built as soon as posi-
BILE.
With the earnest CO operation of Knox
vile and the people on the route of you
road and the lessees Of the Cincinnati
Southern Railway, this may be easily
mplish ed.
Re pectfully, W. A. GUM.