Herald and tribune. [volume] (Jonesborough, Tenn.) 1869-current, 1894-08-01
Five Million People Dependent on Rail
roads.

III speech delivered in the United
States Senate few days ago, Senator
Call, of Florida, drew attention to the
fact that not less than 100000 men,
women and children were dependent
for their livelihood upon continued
employment in the service Of railroad
corporations of the United States. No
European Government, however des
potic, he decided, had control of an
army of 100000 men the total number
of railroad employees being put by the
Florida Senator at 1,000,0 ,00O
Railroad investments, it is popularity
supposed, yield very large return but
the fact is that, taking the country
through and adopting the figures of an
ordinary year, it is found that money
invested in railroads does not yield a
sum so great as to inspire the cupidity
OF an investor seeking very large re-
turns. The total funded debt of all
American railroads in the year 1892
amounted to $5.463, 900, 900. Four and
one half per cent. on this figure of
gross bonded Indebtedness would
amount to S245, 900, whereas, these
railroads paid collectively in that year
S232, 900, 900 on their bonded indebted
ness, or an average of Al per cent. tax.
ing favorable year for such compari-
sons, and not one like the past year,
during which by default upon bonded
interest so many American railways
have been thrown into receiver 3
hands.
During the year 1893 seventy five
American railroads, operating $4,000
miles, and having gross bonded in
debtedness of Sl,9l2, ,OOO,O 900, went into
receivers hands, and have defaulted
on their principal payments, SO that
this years's net returns from railroads
to bondholders, will fall short of Al
per cent. and will not attain higher
average than 81. 1t is also to be re-
membered that those bonds which
regularly pay interest as it accrues sell
at a premium beyond the nominal
value, thoroughly guaranteed gilt
edged" 4 per cent. bond selling at a
premium of 25 per cent.
The gross amount of capital stock of
all American railroads has more than
doubled during the past twelve years,
and now amounts to $4,000, 900, 900.
The total dividends paid on the capital
stock of American railroads amounted
in 1891 to $9O,OOO,OOO, and in 1892 to
1888, 100000. Two per cent. on the total
capitalization would be 800, 900, 900,
and 1t is therefore evident that The
holders of stock in American railways
receive even in favorable years little
more than one and two thirds of per
cent interest on their holdings. The
field for investment is better in Ameri-
can than in English railway companies,
the established rate of interest on bonds
being higher and the fuctuation in
railroad stocks being greater.
The railroads of Florida sustained,
most of them, by Northern capital,
have a mileage of 2,50O miles. Com
pared with the population of the State
they are more extensive than the rail
roads of any other Southern common
wealth, being in the proportion of
sixty three miles of line to 10000 in
habitants, whereas Georgia has twenty
five, Tennessee sixteen, Virginia
twenty one, Kentucky fifteen, and
North Carolina twenty. The Florida
railways have II per cent. of the total
mileage of the United States. New
York World.