National Republican., 1885-08-05
RAILWAY DEBTS, EARNINGS, AND D1v1.
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RAILWAY DEBTS, EARNINGS, AND DIv1.
DENDs.
The annual compilation of railway
statistics by Mr.. Poor, though always so
far behind time as to relate to compare.
lively distant period, is nevertheless
found instructive because II gives the
only indication Of the general condition
Of the entire railway system. The state.
ment this year embraces 125, ,l52 miles of
road in operation, against 100, 552 for
the year 1888. 1t would be naturally
expected that, on account of the ad-
dition Of 1900 miles of new road costing
much less than the average Of the older
lines, considerable decrease might ap.
pear in the average of capital account
per mile in operation. But Mr.. Poor's
report makes the average ofstock, bonds,
and other debts, sci 1897 per mile,
against $4,000 per mile for the prev.
Gus year. The increase in amount of
stock reported, over 81 ZOO per mile for
the new road added, is only moderate.
But the increase in the amount Of
bonds reported averages $3G,500 per
mile of new road, which leads at once
| to the conclusion that considerable
part of the new bonds must have been
issued by old roads, either for construc
ton, or to fund previous floating debt,
or to meet current expenditures and con.
tinue dividends. Evidently the new
roads have not cost all the money repre-
sented by the new securities. 1t is evi.
dent, also, that a part Of the new bonds
was issued in place of floating debt, as
the amount of "other debit has de-
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certainly not 'been payin8 or debt, as n
rule, from their earnings during the past
year.
The gross earnings reported, $40,
GSi,00s, are the lowest per mile on
record. In 1877 the average was only
SG,3Sl per mile, and in 1878 only &c..
207 per mile, but in 1884 it was only SO,
1853 per mile. Still the reduction since
the palmy days of 1881 is not so great
as many have imagined. 1t proves to be
only $40 per mile of road operated,
about Il per cent. But the difference in
net earnings is SG62 per mile, nearly as
much, and the net earnings are also the
lowest on record. The comparison
shows that the expenses were proper.
tionately larger last year than before,
aud that the railroads were carrying u
heavier traffic, but at lower rates than
ever before. According to Mr.. Poor,
the average rate was only l.12l cent per
ton per mile, against 1926 in 1888.
This decrease, though barely an eighth
Of a cent per ton per mile, is enough to
make very important difference in the
condition of the railroads.. That alone
accounts for difference of IL per cent.
IN tho liyidnnds nm all tho etocks Of n II
the railroads in the country.
The amount of dividends paid last
year, according to Mr.. Poor, was $685..
pa, 1886, which averages 2.47 per cent.
on the entire stock outstanding. In
1883, the dividends paid amounted to
$l02, ,052,548, and averaged 275 per
cent. Of the stock outstanding. Never.
theless the dividends paid per mile of
road operated are not the lowest on
record, though the earnings, both gross
and net, were lower than ever before.
The average reported, S7ij per mile, is
substantially the same as in 1870, while
the average reported last year, $S4G per
mile operated. was the same as in 1880.
In 1881, S9l5 per mile, aud in 1882,
S007 per mile were paid, according u
Mr.. Poor's report. Comparing the
dividends paid with the gross and net
earnings, one is forced TO conclude that
some part of the increase in bonded
debt went to continue the payment Of
dividends where they were not earned.
In part, the dividends paid represented
borrowed money, aud the desire of man
ayers to sustain the prices of stocks in
speculation. n.-Netc York Tribune.