Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1886-01-09

net earnings over operating expenses OF
the Illinois roads above is "a. 62 per cent
Of gross earnings, and the average on tn,
Kansas roads named is 4468 per cent, s
difference in favor Of Kansas roads o.
9.86 per cent. The writer then adds
when the average Kansas railroad re
ceives one dollar for services there is g. st
cents more of that collar net profit to the
railroad company than there is with the
average of the best Illinois railroads
This showing does not prove the western
roads to be paupers, or even to have
shared in the general depression of the
country. The larger rate Of profit is the
rates that we're adjusted to business in
ITS infancy, and have not been cores.
pondingly reduced as the circumstances
and increased growth of the country
have demanded"
The writer goes on to state: "If we
compare the average proportion
iofeernings on Kansas roads in 1885 with
1854, We 6nd the ratio of profit largely
increased in 1885 over 1884. In 1884 it
being 446S, I'm 1885 1922. In this
particular, says the writer, Il desire to
ocan your attention to the fact that the
Union Pacific and branches has led in
the advance with the increase of 1905
cents on the dollar, four times the
average improvement in Kansas, show
ing that there is q reasonable latitude
for granting the concession asked for in
the complaint
1t is evident that the writer's idea is
that the ability of railroad company to
reduce its freight rates is to be determin-
I'd from comparison of it's expenses to
earnings, and that the ability of Kansas
xI2roads to carry frejghts at as favorable
RATES as are charged on the leading lines
in the state of Illinois, is to be reduced
from the fact that the ratio of expenses
stosaarnings is less on Kansas roads than
OBTAINS In the former state The fact that
the percentage uf net earnings to operat-
ing expenses on the Union Pacific road
wcre greater in 1885 than in 1884 show
singAn aggregate reduction in expenses
off 81 1891 POI SO, yet the net revenue re.
ceived by the company from its business
IN 1885 was only $150.449 81 in excess of
kat received the year before, would seem
to be sufficient to show Mr.. Collins that
sis figures have led him astray. That
they have, is easily demonstrated from
the examples he has furnished us. Take
for example the st. L. & s. +. road, whose
percentage OF net earnings to expenses
Is the highest in tie list of Kansas roads,
and compare it with the road named
first on the list of Illinois roads, viz: the
Chicago and Alton. The difference is
14O4 in percentage Of net earnings to ex-
penses in favor of the Kansas road. or
more properly, the ratio OF expenses is
that much less. Yet the total earnings
of the Chicago and Alton road for 1884
were S., 709. 274.22, and the earnings per
mile were $l0,24S Sc, while
the total earnings of the
st. L. 4 s. F. road we're 81, S24 ,S23 sc, and
che earnings per mile were $55S196
The net earnings per mile of the Alton
rona Is s., $685. @. and the net earnings
'Deg mile of the Kansas road is S., IA 60.
.InGtead Of the Kansas road earning q
pruat over the Illinois road of 14O4 per
oent - claimed by Mr.. Collins, the last
nnnned road has profit in its earnings
Oh 81 per cent in excess of the Kansas
uuae, Both the larger percentage of ex-
poslEes to earnings, and the greater ratio
6f net earnings per mile of the Chicago
- ALTON road are due to the fact that its
Insight traffic 10 very much larger. For
innfanCe, the per mile tonnage on the
Chicneo Z Alton road for 1884 vas TO-
4oS tona. ON the Frisco road 26O,954.
Ofher reads In the Illinois list given
above have Q much heavier tonnage
than the Chicago & Alton. It will be
ueroeived that the fixed charges being
Substantially the same On both roads,
fhe immensely greater traffic of the one
can be carried ct lower rates OF charges,
and still larger aggregate profit be de-
Kivod from il, than the other can earn. |
The amount necessary to pay operating |
expenses &C the how ratio of expenses |
65f 1884. taxes and fixed charges per
mile on the Frisco road lie 81, 1890. APP
ply the rate per ton per mile charged on |
the Alton road, to the tonnage of the |
sFfioco roed, and it will produce, to-
ether with income from all other
Seurcos. revenue Of $4.1s6.0O, an
amount insufficient TO meet those neces-
ny expenses and charges to keep the
md a 3 solvent condition.
Iko ~ mile tennaoeo Of the Atchison,
EopokS 8 Santa Fe road d greater than
- tnomaso az tho Frisco road, being Il
m ~ 6ons a. round number. IL
lnoSeet q Axod changes - 1leo ltGhtee. Il
kGu1116l ~ IN ~ obtotnod b. apply. /,
- n1nG a G1pnD 20 THE noad /!
- 3 HIT - ozoon1l(o &