New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-02-06
LETTERS TO THE EDITOR.
ROAD OVERCAPITALIZED.
Public Service Has S25O,47O Stock
and Bonds to .Uile of Track.

To the Editor OF The Tribune
Sir: ! constant reader OF your paper. and
have noticed your many references regarding the
Public Service Corporation of New-Jersey. My
family are interested in a small way in some OF its
securities An acquaintance yesterday told me that
some years ago report filed by the North
Jersey Street Railway Company with some State
board-I think it is the State Board of Assessors-n
which the total capitalization and bonds for single
mile of running track amounted 10 almost 10000.
Can YOU from facts in hand, advise me what the
total capitalization of bonds and stocks was per sin
now? Since the Public Service has taken control
have been added and this probably viii reduce the
capitalization and stock per mile What would
ton and stock per mile was and what it is now
and also how this compares with other nterur6an
tween Minneapolis and St. Paul. or any other in
a fair basis to make a comparison with?
Brooklyn. y. Y. Jan. 30, 1905. II. X. l..
The Norm Jersey Street Railway Company.
operating company. incorporated in 1894,
and purchased the entire stock of the Newark
and South Orange Railway Company. In 1893
II leased the Consolidated Traction Company.
combination of a number OF roads. for 500 years,
guaranteeing dividends on S15000o0O OF stock.
The North Jersey afterward got control of lines
in Hudson and Passaic counties. Last June the
North Jersey was acquired by the Public Ser
vice Corporation. which now operates it.
In his testimony before the State Board OF
Taxation, I'm the Newark tax case, May Il.
1902 Elwood d. Hibbs, auditor of the North
Jersey Street Railroad Company testified that
the total outstanding bonded debt of the whole
system on January ]. 1901. was S2S356JO0 (psr
value). and the total outstanding stock on that
date was: Consolidated Traction Company
S15.oOoOOO: North Jersey Street Railway Com
pany SIS 600 900: Rapid Transit, S504, 600. total
$50, 5o4 900; total bonds and stock (par value)
SIS. $50, 500. The total mileage at that time was
about 235
Some OF these bonds liens upon only
part Of The system. and the Sl5.oOO,oOO Con-
solidated stock was not an issue against all
The S5O4 900 Rapid Transit was issued against
the original Newark Rapid Transit Company.
The original funded debt of the North Jersey.
apart from the bonds of the subsidiary COM
panies. was S65o0Oe0 This was increased in
1900 by the amount Of Sl356OOOr while the
number Of miles of track was 240. In the State
Assessors report for 1902 the funded debt is
sued and outstanding was given at S6,JoO.Ooo,
and the funded debt issued and in the treasury
was 81 10000. The number OF miles Of track
owned and operated" was 274.5S According TO
the figures of Auditor Hibbs OF the North Jer-
sev the cost Of the road per mile on the basis
Of the bond and stock issues was $2Jn4'o Tor
the 233 miles of track owned by the North
Jersey There has been no increase of mileage
or funded debt since the statement for l9o2.
An officer of one of the subsidiary roads was
asked what he thought Of the figures OF cost
OF the North Jersey. lie said they were utter
IN beyond reason. II was hard to lax aver
age cost for trolley systems. In the equipment
much depended on the character Of the same,
the length OF the road and the number OF cars
IN use. But $4,000 a mile would be the ex-
D If