The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-05-10

Adding that to the $37,50O brings it up to
SAG. 500. That does not include anything
for the cost of terminals. Now, the
southern Railway Companies terminals in
places like Norfolk, Primers Point, AT
lanta, Washington, Birmingham, Chat
tanooga or Knoxville could not be repro
duced today for any small sum of money.
/ could not give any exact approximation
of what it would cost, but / should say
not less than $4,000 a mile for all the
railroads of the Southern Railway Com
pany, or about $24, 0O00 600 That, however,
is an estimate, and it does not cut much
figure in the total anyway; but we have
spent at Primers Point, / think, about one
million dollars. That is an example of
! the cost Of those terminals at the large
points, which | did not originally include
| in the $4,000 mile. Then, in addition
| to that, We have not taken into account
| the increase in the value which is due to
| the age of the road and to the good will
gained by road having served a com
munity a great many years. In connec-
| tion with the increased cost of so per
cent. in the original cost of the railroad
during a period of, say, 80 years, | might
speak Of certain Improvements which the
Southern Railway Company is now MAX
| ing in the way of taking out grades and
rebuilding of portions of It's line. Those
expenses are going to be heavy, and will
amount up into the millions of dollars be-
fore they are through.
Mr.. Harrison: Name some kinds of
them. Mr.. Hill: We are reduced to a
minimum of 1 per cent between Knox
Vile and Asheville at very large cost.
| / have not estimated what the cost will
| be, but it will be very large, and it will
probably become necessary to rebuild from
time to time a very considerable por-
ton of the system.
Mr.. Harrison: New bridges? Mr. Hill:
We have been putting in new bridges
fright along; rock ballast, where no per-
manent ballast existed, new stations and
additional terminals. Now, even if you
take the minimum estimate of the first
cost of $4,000 per mile, instead of $25,-
600. the considerations above described
would bring that total up, you will find,
in the vicinity of $40, 900 per mile, which
is in my Judgment, the least possible cost
Of reproducing such property as the
Southern Railway Company's lines. Now
4 simply as eorroboration of that esti
mate of a minimum of $40, 900 a mile az
the average value of all of the Southern
Railway Companys properties, l have
taken from the report of the statistician
of the Interstate Commerce Commission
for the year 1881 think the latest re-
mort in book for statement of the av-
erage bonded debt and stock per mile Of
all railroads in the United States, show
ing an average of bonds per mile oi
about 100000; preferred stocks, about
Sc 900, making total of bonds and pre-
ferred stocks of 5000; added to which
to roads have outstanding common stock
to the amount of $4,000 mile, making
a total average capitalization of abou'
$50 900 for all roads in the United States
I think that the lines of the Southern
Railway Company, taking them as
lwhole, have probably cost as much AMI
ere probably worth in that sense as much
as the average of all the railroads In the
United States. When you come to IL
clude the roads through sections of the
West. where they have very little in tho
way of engineering obstacles to overcome
and lines are built at a very cheap cost
and take that and average it with tht
more expensive lines in the East-th'
Pennsylvania, for instance-I believe tina
the average cost, or the cost-yalue, Of
the Southern Railway lines Is at leas
J equal to that of the average of all rail
ways in the United States. ! believe tina
have never heard it seriously ques
toned that the actual cash cost Of the
railroads in tn United States was les
than the total amount of their mortgage
debt and their preferred stocks. Most o
/ the preferred stocks are of recent origin
i under reorganization, and represent sun
stantially bonds retired or new none.
put it. The bonds and preferred stocks 0
, all railroads in the United States av
, erage in amount 5000 mile. and, II
| addition the common stock average il
| amount $24, 900 a mile. 1t is, / believe
well known and understood that con
siderable portion of that common stool
rests upon lines which have very littl
relative funded debt, particularly through
| out the Eastern section of the country
, New England and the Middle States; 81
2 that common stock to a considerable per
/ centage certainly represents cash put int
: the properties or cash received by tn
! companies from the sale of stock.
would not take but % per cent of tina
) $24 900 common stock-you could throN
} away rs per cent of that common stool
and still have the cost of the roads aver
f age over $4,000 per mile in the Unite'
1 States.
Mr. Harrison: Now, take up the cues
1 tion of capitalization of the Southern
/ Railway in connection with these aver
ages which you have stated. Mr. Hill
( The Southern Railway Company is capl
talized in round figures per mile OF roa'
as follows: Funded and guaranteed debi
r about 500, 900 per mile; preferred stock
about $4,000 per mile-total of funde
d debt and preferred stock, about $SO,oo
+: per mile; in addition to which there
E common stock outstanding in the amour
I of about $4,000 per mile, making tota
f capitalization, including bonds, preferre
i lstock and common stock, OF about $oo,oo
4 lper mile. In the reorganization of til
: Richmond Terminal properties, the tot1
q funded debt of those properties was re
: duced to the amount of between $40Oo0'
t loco and $50 000, 900 par value. The prefer
' Ired stock of the Southern Railway wa
!, issued chiefly in exchange or in lieu Q
: the bonds which were thus retired, an
| also in part sold for cash. 1t, therefore
: represents in its entirety substantial
r cash paid out The funded debt too, reT
I resents cash, or cash value, invested Q
. 500 600 per mile The common stock wa