Durango semi-weekly herald., 1902-02-27

Montezuma county S64 sos 3S.377. .65
Ouray county 2O4.945 6,2s5.sO
San Miguel county 7O7, 800 16.79s.47
Total s2,57O, 700 $s9,37447
This is an average tax per mile of
1929 for narrow guage road that has
never paid a single cent to the stock
holders
| This railroad was built through the
efforts of Otto Mears, the pathfinder
of the San Juan" He put his money
in it with that of his friends. and COM
pleted the road in 1892. He was a
man who had great faith in the San
Juan country and believed in it's fu-
ture. He recognized that the road
would not pay Immediately. but he
was confident that with its construc-
ton new business, new mines. and an
increasing population would in time
make the road not only pay profits on
its investments, but in addition. the
opening up of that section of the coun-
try would help the state and all con-
cerned.
The old-timers in that country can
hardly forget the pride that Otto
Mears took in this. his greatest ven
ture. How he invited the Western
Colorado congress to take a ride on
his road. as his guests, he furnishing
two locomotives and five coaches for
the party, and everything went" as
the western expression goes.
However, this road cost more than
he figured on and he was borrower
of money on it's completion, and the
panic of 1893 caused this pioneer of
Colorado to lose not only the railroad
but every cent he had. trying to save
the road from bankruptcy.
The result was receiver and a
reorganization. and when the road was
returned to the stockholders in 1895
poor Mears was left out He had
made his money in the San Juan by
hard knocks and had dropped it all
in this gamble that looked SO good to
him that he played the limit
Since 1895 this property has been
managed by as conservative and care
full man as we have in this country.
man with vastly more experience
in traffic matters than such a road sue
ceeds in getting when run as a
separate venture.
The tariffs have been kept down to
a point that while the fixed charges
have been met, there have been no
dividends paid to stockholders. The
stock has not a cent of value except
to those who are willing to speculate
upon the future of the San Juan coun-
try.
The operations of that road for the
fiscal year ending June 80. 1901. were
the most successful in its existence
and were as follows:
Earnings from passenger. .$94 ,347.l9
Earnings from freight. y .494 .1S0.24
Earnings, mail. express. r. 41,002.05
lOldl 81. pooo,ooH.7o
Operating expenses. =. 81. .$286,78
Leaves net earnings. 1882, ,749.7l
Out of the net earnings this road
paid the following amouts:
Interest on bonds $3.50, 10000
Insurance ..... .... 1,466,72
Taxes. 81 l,o1o.oo
Total ......... $213, ,492.72
This leaves surplus of $39,255.99
which was left in the treasury for
emergencies
A collision that would destroy two
locomotives would have wiped out
every cent they had made in that
most prosperous year
Is it the intention of the people of
the San Juan to ruin the second hold
ers of the Rio Grande Southern as its
unfortunate original owner was ruin
ed? Do they stand back of their SEN
ators and representatives in the legis-
lature who are trying to force this I'M
just tax upon that company?
1t don't take long to figure out that
if the Rio Grade Southern pays the
tax, that they would be shy" just
$1S,492,53 in the payment of their in
terest on bonds and not have cent
of surplus left. If that would be the
case it would mean another foreclos-
ure and reorganization caused directly
by this proposed taxation. 1t would
mean the practical destruction of a
property built for the purpose of de-
veloping the San Juan country.
We write on this subject with very
strong If" connected with any prob
ability of the tax being paid. because
it is SO improbable that 1t is out of the
question.
We know that the people them
selves will see the ridiculous position
in which it puts them, and the state,
in case they push further these ex-
perimental taxation schemes that are
consuming our legislators. The rev.
enue bill fiasco has unsettled the rail
road business of the state. and 1t is
only a side issue to what would be-
come OF us If the Bucklin bill would
succeed.
Now, the average tax per mile In
the United States is $237 on all kinds
of railroad. The ordinary tax on mar
row guage roads runs from 1892 to
$l17.68 per mile. There are one or