The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1898-02-07
RAILROADS EAST AND WEST
AN INTERESTING CONTRAST AS TO
RAILROAD RECEIPTS.

The New York, New Haven and Hartford
and the Wabash Railroads-How Big
Eastern Roads Pick Up the Most Money
Owing to Greater Density of Population.
ut is really a great pleasure" says
Rialto in the Boston Advertiser, "for
newspaper man to meet such person
as President o. d. Ashley, of the Wa
bash railroad, who not only has an
immense fund of practical railway eX-
perience, but also an intuitive knowl-
edge of how to impart briefly and con-
cisely his opinions on the subject in
hand. Mr.. Ashley and the secretary of
the road, Mr.. Oterson, were in Boston
yesterday on business, but 1 managed
to corner Mr.. Ashley for a short few
moments, and he talked most interest
ingly on the situation Of the transport
tation industry of this country and its
future.
Among other things, he said that he
was very hopeful for the future, as are
most western railroad men, and he
thinks that, barring the superficial dis
turbance caused by uneasiness over
the outcome of the Cuban matter,
there is very broad foundation upon
which bullish sentiment can rest.
This foundation is the prosperity of
the railroads throughout the country
Taking my own road as an in
stance said Mr.. Ashley, "as I am
condition and prosperity, we are at
present not only doing the largest bus
iness in the history of the road since
its reorganization in 1889. but better
business even than we expected to do
sixty days ago. We shall earn at least
five hundred thousand dollars more
net this fiscal year than last year, and
the earnings for the six months ended
December 81 were the best, as I said
before, since 1889. While we paid six
per cent on the debenture A bonds in
1890-91-92, nothing in 1S94-95, and one
per cent. in 1896, and while we shall
this year earn a surplus sufficient to
pay the interest, it will not be the poll
cy Of the management to make such
payment, as there is a floating debt
which must be cared for in the first
place.
1.-THE rate situation has been a dis
turbing factor in the successful opera
tions of most of our western roads,
and am glad to be able to say that
the situation has changed for the bet
ter 1atterly. There has been much
trouble on account of the 500 road
and it's Canadian connections, and this
element is still prominent in the north
west, although for the time being,
rates are fairly firm. In my opinion
the solution of this problem will come
with the growth of the country it may
not be in this generation, but the indi-
cations are that the rapid increase in
the population of the central western
states will, within the next score of
years, eliminate the rate problem by
furnishing business to the capacity of
1.-The railroads. AT the present time the
western roads depend almost wholly
on the transportation of freight to pay
their way, while here in the east, it
is the passenger business which gives
I anticipate that in the near future the
states of Ohio, Illinois and Indiana
will have as dense population as
Massachusetts, and when that time
comes roads such as the Wabash will
be able to pay their fixed charges and
all subsequent obligations, including
dividends on the last dollar of common
stock.
las illustrating the difference be-
tween railroading east and west, take
the New Haven and the Wabash. The
former runs, we will say, ten trains a
day between Boston and New York
averaging six cars to train, and car
rying on an average the year round
thirty passengers to car. We rur
The same trains between st. Louis and
Kansas City, the distance is almost
the same, and the cost of running is
no greater in the one case than in the
other but taking it the year round, we
average only twelve passengers to 6
+ car The difference in favor of the
New Haven at a minimum rate of five
dollars a head, is s5400 a day. The
Wabash would obtain $4,000 gross re-
turns daily, and could make money al
that, and as the cost of running Is the
same, the additional S., 400 obtained by
the eastern road would be clear profit
The future of western railroads with
an increased population can be. easily
seen.
s"There is another point which in
clines me to believe that an era o.
great railroad prosperity is athand, the
building of new lines and the branch
ing out of old systems into untriet
territory has practically ceased, ex
cept possibly in Texas and the fa
west This means that the railroads
are waiting for the country to grow t.
their capacity, and when this shall b,
Z an accomplished fact. it will be founc
that the business according to thu
roads will show substantial profits OF
every mile Of road now existent.
at is a common fallacy that Ameri
ran railroads are overburdened will
bonded Indebtedness and matured cap
ita1 At the present time the capital
zation of the railroad systems OF tn
United States is $4,000 a mile, while il
England it is $240.0O0 mile, and yet il
the latter country there is returne,
anywhere from four to five per cent OF
the capital invested. AS the bulk O
the business of English roads come
from, Messenger traffic it can easily h