The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-17
AN EASTERN FINANCIAL JOURNALS
CRITICAL EXAMINATION OF
THE BURLINGTON
SHOWS THAT THE BRANCHES
EXPECTED TO AID 1T ARE IN
FACT SAPPING ITS
STRENGTH.
Whereas, In Years of Prosperity
They Were as High as Eight
Per Cent.

An Eastern financial journal, in COM
menting upon the earnings of the Bur
lington system during the year 1896
and years previous to that, has some
very interesting comparisons to make.
The comparisons show the effect of in
creased mileage and the effects upon
the revenue Of the different policies in
effect at different periods. The show
ing presents a marked falling off in
earnings per mile of road. In part the
article says:
Conditions in Burlington territory
have not only changed, but the road
has now vast mileage which is drag
ging it down instead Of helping it
along, or at least being self-supporting.
The chances for Improvement in this
direction are not easily figured out,
for even in periods Of extraordinary
traffic, results are anything but bril-
liant, while the constant tendency to
decreases in rates renders less and
less likely any full recovery to the best
of recent records.
No one is looking for, no one expects,
that Burlington will ever get back
to per cent dividends and large sur
pluses. The question just now, in fact,
is not one of possible return to per
cent 1t is rather as to how long the
road VIII pay per cent, earnings fail
Ing by large amounts to cover that
rate of distribution. Gross earnings
have been as high as $50, 900, 900, net as
high as $10,50O,O0O, since the 1883 labor
trouble, and yet, taking the good and
bad years from 1889 to 1893 inclusive,
earnings have exceeded disbursements,
including dividends, by an average of
only $4,000 a year. And why? Be
cause the new roads have not brought
the new business necessary for their
sustenance, while they have brought a
burden of charges for interest, main
tenance, etc.
Between 1883 and the end of the '80s
most of the Burlington's expansion took
place, but during that period the COM
pany conveniently omitted from it's re-
ports all reference to ton miles, like
wise passenger miles. We can. how
ever by taking the 1883 figures, make
out an exhibit showing the progress
which has taken place. The record
for 1895 admits of the following com
PARSONS with that for the year just
named
1888 1895. Changes
operated 1885 57s1 *2,478
Ton miles. 1,552 141 453 1922 O46 436 1853 9O4 1888
mile Of road 476,84S 32S. 1893 14S. $50
Freight earn $19,514161 SIG, 1876 1873 SIS. 995
Rate, cents. 1853 O.8S54 !0.3725
Increase. ! Decrease.
Operated mileage increased 2476
miles, but traffic density fell AWAY most
lamentably. there being only 322, 1898 ton
miles per mile of road for 1895 as COM
pared with 476,S4S for 1888, a decrease
of l48,45O Remembering the enormous
expansion In the cOuntry's railroad
system at large, which this period
covers, and that it may be argued con-
corning 1895 that that year was by no
means an ideal one, it may be we'll
to show general results for all railroads
by the side of those Of the Burling-
ton:
Ton miles per mile of road:
1888. 1895. Amt PC.
United States. .399, 0S8 494 344 *95 256 "a
Burlington ........ 476,S4S 32S,39S 148, 400 81
Increase. Decrease.
So 1t appears that while the single
read by it's reaching out into unpro-
duCtive territory since 1883 lost an
average of 14S,450 ton miles, equal to
81 per cent, the roads of the United
States as a whole gained 1856 ton
miles for every mile operated, an i'm
provement of "a per cent. The Burling-
tons developments show the disadvan-
tage under which the property is oper-
ated now as compared with the earlier
period
1t would seem fair to assume that
the companys old lines, the 1885 miles,
had developed in traffic as much as the
average of all roads. But in order to
get an idea of the results on the addi-
tons, we will not go SO far as that. We
will take it for granted that they got
no more traffic per mile in 1895 than
they did in 1883. This would be 476, S48
ton miles per mile. An exhibit for
both old and new mileage would then
show the following astonishing figures:
Freight earnings of 1926 miles at
476.S48 ton miles per mile of road
the 1893 average, at 1854 mills, the
1880 rate ................... .$13, 742, go
Earnings of the increase mileage,
2,476 miles Observation-Disclosures. 1892, 500
Total ........... ................ .$16, 1855, 166
Average freight earnings per mile
Average freight earnings per mile
new mileage Observation-Disclosures. 967
At the 1895 rate of 1854 mills per ton
per mile, it is seen that the 1886 miles
would earn from freight $13, 742, $50. and
this supposing the original system not
to have improved by even a single ton
mile either from direct business or
from connections, leaving a total
of 1892, SOC as the freight earnings of
the 2,476 miles added to the system
during the period under discussion The
averages per mile show $4,222 and 1867
for the old and new mileage, respec-
lively
Assuming that the objection is raised
that 1895 results do not form a basis
for comparison, it must be admitted
that the unusually good year 1892 ls
equally defective. However, 1t will be
interesting to see how a calculation
would work out placing that years
totals against those for 1888. Here we
have them:
1888. 1892. Changes
No. miles
operated. 1926 5461 *2 206
Ton miles $50 141 453 2,345 442 141 1893 800 sos
Ton miles per
mile of road 476S48 429 4S9 ,47, 359
Freight earn $40 514161 $22, 768 O07 +s3 253, S43
Rate, cents. 1.2579 0.9706 .0.2S73
Increase. Decrease.