The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-08-05
RAILROADS IN AMERICA.
TheJ Total Capital. Debts. Stocks, Bo.ds
and Dividends.


and Dividends.
In a speech delivered in the United
States senate a few DAYS ego, Senator
Call. of Florida, drew attention 20 the
fact that not less than FIVE million men,
women and children were dependent
for their livelihood upon continued en-
plOyment in the service Of railroad cor
poratiOns Of the United States. No
European government, however deS-
potic, he declared. had control Of I 4
army Of one million men. the total
number OF railroad employees being put
by the Florida senator 81 one million.
Railroad investments, il is popularity
supposed, yield q very large return, but
the fact is that, taking the country
through and adopting the figures Of an
ordinary year il Is found that money
invested in railroads docs not yield n
sum so great as 20 inspire the cupidity
of an investor seeking very large re
turns. The total fund OF debt Of all
American railroads in the year 1899
amounted 70 8, 465, OO0. OO1 -Four and
one-hslf per cent. on this figure OF
amount 70 s245, 900, eco, whereas these
railroads paid collectively in that year
So, 600. 600 on their bonded indebted
ness, or an average of ~ per cent,
taking favorable year for such com
parsons. and not one like the past
year. during which by default upon
bonded interest SO many American
~
ceiverS' hands.
During the year 1893 seventv-fve
American railroads, operating $4,000
miles and having a gross bonded in
debtedness Of SI,2I2, 900, 900. went into
receivers hands and have defaulted on
their principal payments, SO that this
years net returns from railroads TO
bondholders win fall short OF ~ per
cent. and viii not attain a higher aver
age than 5Is. II is also 70 De remem-
bered that those bonds which regularly
pay interest as il accrues sen al a pre-
MUM beyond the nominal value,
thoroughly guaranteed ''gilt-edged'
four per cent. bond selling at pre-
MUM of % per cent.
The gross amount Of capital stock Of
all American railroads has more than
doubled during the past twelve years
and now amounts 10 5000, OO0. oOn
The total dividends paid or the capital
stock of American railroads amounted
in 1851 10 500. 600. 600 and in 1899 TO ss3.-
O0O.OOO Two per cent on the total
capitalization would he 500. oO0. 900, and
it is therefore evident that the holders
OF stock in American railways receive
even in favorable years little more than
one and two-thirds of one per cent. in
terest on their holdings The field for
investment is better In American than
In English railway companies, the
established rate Of interest on bonds
being higher and the fuctuation IL rail-
read stocks being greater
The railroads of Florida, sustained,
most Of them, BY northern capital, have
o mileage Of .. 800 miles. Compared with
the population OF the state they are
more extensive than the railroads OF
any other southern commonwealth be
ing in the proportion of sixty-throe
miles Of lire 20 10000 inhabitants,
whereas Georgia has twenty-five, Ala
bama twenty-five, South Carolina
twenty, Tennessee sixteen, Virginia
twenty-one, Kentucky fifteen, and
North Carolina twenty. The Florida
railways have ~ per cent. Of the
total ruilaac,p ~ the uitod GtateEE