The Caucasian. (Clinton, N.C.) 188?-1913, 1896-08-27

the Richmond Il Danvilie company.
will illustrate the very liberal terms
on which the representative OF the
state have dealt with this Virginia
company
The report for the year lss's, states
that the cost and equipment Of the
North Carolina Railroad Ia date Vas
81 .2e3 saa- "a; the gross earnings for
the year were 81 ..a3 ,39s q the operat-
ing expenses &st6.s5ais: the net in
come Was ta.s, s3s.9l.
At this rate, the Richmond & Dam
vile company Was making % per cent.
on the property Of the State, over and
above all expenses. But they only
paid interest on the original cost OF
the road. which Was 100000. On
this amount for the year lss2. the Rich
mond & Danville Company derived a
clear profit Il.3 per cent.-nearly i,
per cent. while they were paying the
North Carolina company 6 per cent.
The next year, ls33, the report states
the gross earnings NJ 81, los ,sS6. SO.
The operating expenses were $685.
$3.50. The net income was $ao3, D..
The Richmond 4 Danville Company
derived 10 per cent. and two-tenths,
upon the 1900 900 Of North Carolina
capital on which they paid an interest
of per cent,
The report for the year 1884 states
that the total gross earnings were
81 ,032;sl3 30; and the grand total OF
expenses were 1921 ,276y02: the net
earnings were, therefore, $27 -5;s1.5a.
The profit on the four millions OF
capital IN this instance was G..S per
cent. There are some items of expen-
diture not definitely stated, which
may have been permanent additions
to the property OF the road, and not
mere repairs.
The gross earnings for the year 1895
are stated in the report to be 81 RS,
1896; the operating expenses were
1888, lSl.79; the net income of the
Richmond & Danville Company were
1866, 4ll.s7.
The interest the company derived in
this year of 1895 was 9.l6 per cent
upon the $4,0OO.OOO, which was the
original cost of the road.
1t may be said that the Danviile
company was entitled to make a fine
profit upon their investment, risk anC
trouble. 1t may be said also, that the
North Carolina Railroad Company
should have incurred the risk anC
trouble, and have reaped the additions
profit.
In this place it is proper to draw at
tentiOn to the fact that while the pop
ulatiOn of the country through which
the North Carolina Railroad passes
and especially, the population ant
business of the towns, there has beef
no increase, according to the Rich
mOnd Il Danville reports of the ne
: profits on the road. Smith reporte,
the net profits for the year endin,
May 3lst, 1871. at $464 1859, while tn
Richmond & Danville report for lS9:
, twenty-One years later, shows q ne
, income of only $476,43S.9l. The re-
ports for 1898, 1894 and 1896 show
falling off from this amount. 1t mus
need be that very considerable sum
! which are charged to the account O
, repairs should be placed under tn
head of additions to the rolling stOc
or other cOnveniences and improve
= ments of the road. In the report 70
t 1895, for instance, under the hea
!, "Maintenance of Way and Structure,
and maintenance of Equipment,
= most of the items charged are for ere
pairs and Renewals" What proper
}, ton the "Repairs" bear to the ere
= newals" is not stated.
But 1t is extraordinary that ther
}, should have been no increase of profit
r on the road, in view of the immens
increase of manufacturers and trad
in the towns which the road has bui
up. And the second lease of this gre,
+ road, in 1895, for the paltry sum (
. $266, 900 for the first five of the ninet!
r nine years, and only $4,000 more Il
the remainder of that long term, was
mOnstrous abuse of authority by tho!
e having the business in charge.
III Long before the ninety-nine yea
!. are out, the State of North CarOlir
will have five millions of inhabitan
and more than one town upon ii
a road will have fifty to one hundrt
q thousand inhabitants.