The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-02-18

tion far above the amount actually in
vested in the road. The Electric Trac-
ton company was bought at the rate of
$50 for full paid shares of the par value
of $50 and $40 for shares on which only
$50 had been paid in. The Peoples
Traction company was purchased at the
rate of $40 for each $50 share. For
these purchased shares the Union COM
pany gave gold certificates, redeemable
in so years, bearing per cent interest.
The stockholders of the old companies
had the privilege of subscribing for the
stock of the Union company in proper
ton to the amount of stock they owned.
The capital of the old companies
had been $37, 750, 900, and the stock of
the consolidated company was $50, 000,-
900, SO the holder of 100 shares in either
Of the three companies could subscribe
for-77 shares in the new concern.
It was estimated when the consolida-
ton was formed that the gross receipts
of the company for the year ending next
Septembe would be $12, $50, 600, that
the operating expenses should be about
so per cent of the receipts, and that the
company after paying nearly Sc. 900, 900
for rentals, interests on bonds, and SO
on, ought to pay dividend of per
cent. Probably the difficulties the COM
pany has been having recently with its
employees will make serious difference
in the amount of its dividend. Besides
this, the estimate of receipts was based
on an exaggerated idea of the increase
in business.
Profitable Stock.
Here, however, is the full measure of
the Elkins- Widener interests:
Capital stock over $500 900 0OC
Receipts, 1895, about. ............... 26, eco 0N
Earnings ACKNOWLEDGEMENTS. 10, 5cOON
Passengers carried. .................. 6OO,0O OON
The Elkins- Widener company has a
large interest in the Jersey City Newark
lines and in the Washington Belt line.
One amazing fact about the Elkins-
Widener roads is that the 500 miles of
roads controlled by this great syndicate
are capitalized for 5000, 900, 900. The
remaining IL, 7S8 miles of roads in the
country are capitalized for 1854, 000,-
oOO
The Elkins-W idener roads are capital
lied at $3.50, 900 mile and the other
roads in the country at an average of
less than $780, Although the con-
struction of all of these roads, notably
the Broadway line, was very costly,
there ought to be great deal of profit
able water in a capitalization of $780,,
900 a mile, which may explain in part
why Mr.. Elkins and Mr.. Widener are so
rich that they are ready to retire from
active business and take trip around
the world in the steam yacht Mr.. Wild
ener is building.
Another theory, held by some people
here, is that Mr.. Elkins and Mr.. Wild
ener have such an enormous load to
carry that they are anxious to ''stand
from under" If they can get other shout
ders below it. The stock of their COM
panies has been watered SO persistently
that the Union Traction company now
represents capital liabilities of $685.,
900, 900, and some of the properties held
by it were bought by its constituent
companies on greatly inflated estimate
of their value. In order to pay the in
terest on these investments the Union
Traction company, it is estimated, will
have to increase the street railway traffic
of Philadelphia nearly 40 per cent this
year. AS the increase last year over 1894
was very slight, it does not seem likely
this will be done.
Messrs Elkins and Widener are inter-
ested in real estate, oil, contracting and
other things. They are thought to be the
chief stockholders in the Manhattan
Storage company, which controls stor-
age battery system for street cars. Au
gust Belmont is interested heavily i'll
this company. Mr.. Elkins and Mr.. Wild
ener are said to be interested also in the
Pennsylvania railroad, but it is possible
they gain this reputation through bust
ness association with Thomas Do1an,
who, in addition to being heavy stock
holder in the syndicate roads, is di-
rector of the Pennsylvania company.
Development of Street Railways.
One looks back a very short distance
to see the beginnings of these great for
tunes It was little more than II years
ago that P A B. Widener, returning
enthusiastic from examining the cable