New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-08-04
RAILWAY DEB7S EARNINGS And DIVI
DENDG


The annual compilation of railway statistics by
Mr. Poor, though always so far behind time as to
relate to a comparatively distant period, Is never
theless found instructive because it gives the only
in licaton of the general condition OF the entire
railway system. The statement this year embraces
l25l52 miles of road in operation, against lZo,ooz
for the wear 1888 IL would be naturally expected
that. on account of the addition of 1900 miles OF
new road costing much less than the average oil the
older lines. a considerable decrease might appear-ih
the average OF capital account per mile In operation
Bnt Mr. Poors report makes the average OF STOCK
bonds. and other debts, 1897 per mile. against
$50 O3O per mile for the previous year. The In
crease In amount of stock reported, over $l1,7Oo
per mile for the new road added. is only moderate.
But the increase in amount OF bonds reported
averages 1885, 800 per mile of road which leads
at once to the conclusion that considerable part
of the new bonds must nave been issued py oio
roads either for construction or to fund previous
floating debt. or to meet current expenditures and
continue dividends Evidently the roads have
not cost all the money represented by the new BE-
curitcs Ii is evident also, that part OF the new
bonds was issued In place of floating debt, as the
amount of other debt " has decreased $2i,2oo.-
6s9 The roads have certainly not been paying on
debt as a rule from their earnings during the past
year
the lowest per mile on record. In 1877 the average
was only SO .3sl per mile, and IN 1878 only $6.207
per mile. but Ia 1854 It WAS only S6.l5s per mile.
still the reduction since the paImy days of 1881 IS
not 80 great as many have imagined. Ii proves to
be only $40 per milo of road operated. about ii
per cent. But the difference IN net earnings Is %oO2
per mile. nearly as much, and the net earnings are
also the lowest record. The comparison shows
that tie expenses were prOportlonatey larger last
year than before and that the railroads were carry
ing heavier traffic but ut lower rates than ever
before. According % Mr.. Poor. the average ratio
was only liza cent per ton per mile, against l.23O
IN 1883 This decrease though barely an eighth
of n cent per ton per mile is enough to make very
important difference In the condition OF the rail-
roads That alone accounts for difference OF | ID
p,r cent in the dividends on all the stocks oil all the
railroads in the country.
The amount Of dividends paid last year according
10 Slr. POor.was 1924. 30. wh ell averages PAT
per cent on the entire stock outstanding. In 1888
the Iii vidends paid amounted To- Tlo2.o525is. and
averaged =. - per cent on the stock outtanding
Nevertheless, tho dividends paid per mile OF road
operated are not the lowest record. though the
earnings both gross and net we're lower than ever
before. The average reported S74j per nile, IL
substantially the same rs IN ls19 while the aver
age reported last year. - i6 per mile operated, was
tie same a. in 1850. la ISL 500 per mile ana IN
1852 S9O7 per mile were paid. according L" Mr'
"oor's report Comparing the DIVIDENDS Paid with
the ros, and net carningsone j. forced to conclude
that oe mart Of the increase IN bonded debt went
, to continnc tho raymcnt Of dividends where they
were not earned IN part, the dividends paid repre-
sented borrowed money and the desire of managers
10 sustain the prices Of stocks in speculation