The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1906-10-29
SAYS SCHEME
IS A DREAM
The Financier Brands Chi
cago- New York Electric
Railway as Visionary.
PAPER AN AUTHORITY
Gives Figures Which Apparently Ad-
nit of No Denial-Warn-
ing to the Public.

The Financier, recognized as the
foremost publication of its kind in the
United States its statements possess
ing the utmost Importance and highest
significance, gives space to the follow
ing dissection of the Chicago New York
electric line. which is supposed to be
seeking a rght-of-way through north
ern Lake county. The article is writ
ten in reply to the appended letter of
inquiry:
Editor The Financier-Sir:-Wh hat
do you think of the possibility of the
successful construction of the New
rk-Chicago Electric Air Line, which
is being extensively advertised in the
daily press? "A READER.
Bowling Green, Ky, Oct. Is, 1906
The Finnncier's Answer.
A more visionary project was never
foisted on the American people The
scheme, however is not more prepos-
terous than the estimates of construc-
tion and operation. For instance, the
line Is capitalized at 5000, 900 600, and
the cost of construction is stated to be
150.O0000O. The capitalization on a
750-mile trackage is thus S26e,666 per
mile, a most absurd fgure-one not
matched by the best railway system in
the United States. Conceding that
double trackage is intended. and that
$500 miles OF rails will be laid, we still
have a mileage capitalization of S133,
sSS Just take down your Poor's Man
val and see how this compares with
Ne great railways Of the country.
second-In the latest prospectus
ich the promoters of this moonshine
sc. eEne hswe issEed. the earning power
Of the road Is placed at ss5.ooo.ooo per
annum This, on 1900 mile track ba-
sis, is at the rate of s2S.SSs per mile. or
$46,666 per mile on the 750-mile
through line. What are the interurban
lines already built doing? The Lake
Shore electric. which has $50 miles of
tracks, Of this in cities-and which
serves rich territory between Cleve-
land and Toledo, earns in II months
about 100000 gross, or roughly $4,000
per mile. 1t costs to operate this sys-
tenn $430,000 leaving something like
$4,000 net, or a little over $500 per
mile. Take the Detroit United, with its
541 miles Of line, 200 of which are in
cities. The road is one of the best
known interurban propositions in the
world. In IL months it earns gross
S5,125,000. and net $2.125,000. It's gross
earnings are less than $4,000 per mile
this, remember, on a large proper
ton Of city mileage. The Detroit
United owns, as stated Sal miles of
more than one-third that which the
New York Chicago Air Line proposes.
Now. if Detroit United. on a 1900 mile
basis, increased its earnings In proper
tion, 1t would report something like
$4,000. GEO gross earnings, and $4,000,
coo net The New York Chicago Air
Line people estimate the cost of con-
Quoting transportation alone at $S,000,-
600 per annum, and other expenses
maintenance, etc.-at as much, so you
see about the chance the proposition
would have of paying dividends. On
its own showing it would be in bank
ruptcy at the end of the year, conced-
ing that it did as much business as the
Detroit United, which is impossible.
The New York and Chicago local city
lines themselves do not earn as much
per mile as this wild plan necessitates
for successful operation. II you can
imagine a street like Broadway. reach
ing from New York to Chicago with a
double track railway traversing It. you
might find an investment in such an
enterprise profitable. but as it is, the
scheme is too absurd for serious con-
SlQSIallon. " nat dhbSNAAS , ~ 10 dS TIC
worst feature OF this whole business
is that the great papers of this country,
which are printing page advertise
ments for the promoters of this scheme
do not allow the technical editors con-
nected with the several journals to
EXPOSE the folly of the thing. Cashiers
OF banks and particularly country
banks. will do well to warn their
friends against losing money through
purchases of this widely advertised
"air-line" stock.