The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1903-05-12

Adding that to the s37, 500 brings 1t up to
$40. 500. That does not include anything
for the cost OF terminals. Now, me
southern Railway Companies terminals an
nlaces like Norfolk. Primers Point, At
Ianta. Washington. Birmingham. Chat
tanooga or Knoxville could not be repro
.uced today for any small sum or money
/ could net give any exact approximation
Of what it would cost, but ! should say
not less than $4,000 a mile for all the
OF the Southern Railway Com
nanv. or about se4, 600. 900. That, however,
i an estimate. and it does not cut much
figure in the total VIVA but We have
snant at Primers Point, | think. about one
million dollars. That is an example OF
he cost OF those terminals at the large
which / did not originally include
in the s25. 900 a mile. Then, in addition
10 that. we nave 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 a road having served a COIN
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, L might
speak Of certain improvements which me
Southern Railway Company is now max
ing in the way of taking out grades ana
rebuilding of portions OF its line. THOSE
expenses are going TO be heavy, and VIII
amount up into the millions of dollars be-
fore they are through.
MIR. Harrison: Name some kinds OF
them. Mr.. Hill: We are reduced to a
of l per cent between Knox
VILE and Asheville at a very large cost.
| AVE not estimated what the cost Will
be, but it will be very large, and it VIII
become necessary to rebuild from
to time a very considerable por-
ton of the system.
Mr.. Harrison: New bridges? Mr.. Hill:
We have been putting in new bridges
along; rock ballast, whore no per
manent ballast existed, new stations and
additional terminals. Now, even if you
the minimum estimate of the first
cost of $40, 900 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 a property as the
Southern Railway C~ompany's lines. Now,
as a confederation of that est
mate of a minimum of $4,000 a mile as
the average value of all of the Southern
Railway Company's properties, | nave
taken from the report of the statistician
of the Interstate Commerce Commission
for the year 1851 think the latest re-
port 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 of
about $780, 600; preferred stocks, about
$6, 900, making a total of bonds and pre-
ferred stocks of $50, 900; added to which
to roads lave outstanding common stock
- III ~,o,rt 0f cot 0n0 n n,i1o MAILING
a total average capitalization of about
900 for all roads in the United States.
| think that the lines of the Southern
Railway Company, taking them as a
whole, have probably cost as much and
ere probably worth in that sense as much
the average of all the railroads in the
United States. When you come to IN
clude the roads through sections Of the
West, where they have very little in the
way Of engineering obstacles to overcome
lines are built at a very cheap cost,
and take that and average it with the
more expensive lines in the East-tho
Pennsylvania, for instance believe that
the average cost, or the c~ost-value, Of
the Southern Railway lines is at least
equal to that Of the average of all rail
ways in the United States. / believe that
| nave never heard it seriously ques-
toned that the actual cash cost of the
railroads in tn United States was less
than the total amount Of their mortgage
debt and their preferred stocks. Most Of
the preferred stocks are of recent origin,
under reorganization, and represent sub
bonds retired or new money
it. The bonds and preferred stocks of
railroads in the United States av-
in amount $50, 900 a mile. and, in
the common stock average in
$24 900 a mile. 1t is, | believe,
known and understood that a con-
siderable portion of that common stock
rests upon lines which have very little
relative funded debt, particularly through
the Eastern section of the country,
New England and the Middle States; so
common stock 10 a considerable per.
centage certainly represents cash put into
the properties or cash received by the
companies from the sale of stock. 1t
would not take but % per cent of that
$24, 600 common StOck-yOu could throw
away IS per cent of that common stock
and still have the cost of the roads aver
age over $40, 900 per mile in the United
States.
Mr.. Harrison: Now, take up the ques-
ton of capitalization of the Southern
in connection with these aver
ages WHICH you nave stated. MI, Hill.
The Southern Railway Company is capt.
talized in round figures per mile of road
as follows: Funded and guaranteed debt.
about 500, 900 per mile; preferred stock,
about so, 900 per mile-total of funded
debt and preferred stock, about $500 0
per mile; in addition to which there is
common stock outstanding in the amount
of about 500, 900 per mile, making a total
capitalization, including bonds, preferred
stock and common stock, OF about $50, 900
per mile. In the reorganization of tho
Richmond Terminal properties, the total
funded debt of those properties was re
duced to the amount Of between $40, 600
600 and $50, 000, 900 par value. The prefer
red stock of the Southern Railway was
issued chiefly in exchange or in lieu of
the bonds which were thus retired. and
also in part sold for cash. 1t, therefore,
represents in its entirety substantially
cash paid out. The funded debt, too, rep
resents cash, or cash value, invested of
500, 900 per mile. The common stock was
issued partly in exchange for the Sc
c~urities of the old companies, and also
was partly sold for cash. The facts are,
therefore, that the average railroads in