Seattle daily post-intelligencer. [volume] (Seattle, W.T. [Wash.]) 1881-1888, 1883-09-02
ID IIX
POST : MTELIIGENCEH


Some important and interesting faoss
suusar IN connection with the railroad
svsaem Of this country. dsdaesd from
seaaississ published in Poor's Manual
for lse2. In 1850 the total number Of
ui,ea Of railroad in the Unitsd Stasss
vas 81 ,l47, on which there Vas stoek ~
"a % ths amount Of t2ysse. s7s, s6s and
4. ADDITION q funded and floating debt
Of s26soOs7 .06s, representing total
liability Of S5,s73.0ls,s6 or e5s,sas per
mill. In 1881 the amounts stood thus;
Nils, lM. s4s; stock. $s07o,sis,eii;
funded and floating dsbt, $3.O4A. 6*,s12.
Total liabilities, 6,ii5.+so,5ss' or sa',
7ao ner miis. In lsa2, miles llz,4l2i
seock. ss.A56yO7s, ls6; funded and noAs
ine dsbs. es.las $50, lSs; total liability.
aeso6. 81, 86s, or 81, - pr mile. he
sroes earnings in 1850 we're ISL, 2SS. 70'
about ll5 psr esut. On invsssmsns. Nss
eas,ineu, 1850. eZ25l6,sN, Or . tr'ns
Over pss esnt. In 1881, gross safn'n~
500, go, Isl, Per esot. about I'D. M
earnings, ees6, ~. zee. pr ssns. sooo'
a. In lisa. eroa earnings $7o,26'
76a. NJ esst. ll.2; pse earninaA tSlo.-
es2,s77, Per csns. A5. Tbs saE''nas pss
mile vses In 1850. aros t7.ls6; net. es.-
2ss. In 1881, eros t75z; INST $500.
In iso1, eres e7.iss; nss $2Ses.
TIE insrsass Of capital stock and IN
deb<sdnsss Of the railroad companies
for H. three ysAn ending Dscsmbss H.
lsea, vas q, O23 $40, S42, being An aver
ses In round numbers Of SDUO fof
evesy mile built. The increase In the
dsbs has bssn $3.50. DS, $50, . little over
$4,000, leaving about $4,000 per mile
for cspitalixatiop. II 10 safe to assume
that The 5000 miles Of railroad con-
strustsd in the past three years, did not
eoes IN actual cash paid out over $So.-
100000, or IN amount e6S.00.0o lee
than the debt contracted BY the several
companies building thsm. This leaves
the capital sock Of these companies
which durine the sams period has osen
issued 70 IN amount Of $4,000 for each
mile CONSTRUCTED 70 represent whAs1
Not cash paid out, for II the estimate
h csrysct, ths increase Of hOstinR and
funded Indebtedness 70 the amount o.
$4,000 Per mile accounts for sumessns
cash 70 build the roads. Il fellows
then, and u worthy Of attention, that
VI lie 5000 miles Of railroad have bssn
built on borrowed msusy during ths
pas three years, for which the roads ars
liable q the rass Of $4,000 pr mile,
q, 1901 100000 In stock has bssn Issued
and disisibutsd, for which no cash has
bssn invested In construction Of The
roads on whish II 10 issued. And It fur
thsr follows, and IL instructive also. that
70 earn and pay interest upon the debt
contracted In building thess new miles
Of road, and also 70 pay dividends as
the sAms rate upon the stock Issued
thereon. requires . net income more
than double what would b required did
The liabilities represent merely the cost
Of the roads. Il results that The pablo
i 10 b taxed, not alone TO pay interest
on The cost Of the roads constructed,
bot dividends upon more than Al equal
amount Of sock issued upon this idsn-
teal new mileage. In other words 70
pay 6psr cent. on the liabilities Of this
nsw mileage. . net revenue OF II Per
cent. On IL cost must bs earned and d.
vidsl, pr can't Of which goes 70 pay
dividends on stock for which the roads
seesivsd no equivalent. u may b that
The estimate Of $4,000 per mile for cost
Of construction ID too Low. but II ID Ger
tainly true that $4,000 Per mile repre-
ssnts . liability vastly In excess Of 40
tual cost, and that ON just that differ
snes doss the public pay tribute in the
shape Of increased fares and freights.