The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-09-29

TO the sum needed to pay taxes, inter
. est and dividends.
You who live in this country O.
opportunities should understa M
these Things, because you make tn,
laws which your elected officers mus
under their oath Of Office, carry out
you make laws that make IN,
cnance OF return on the inyestnnen
IN mile OF railroad remote. Won dafa,
the construction of new lines. hecaua,
people Will not invest in an unproduc.
tive railroad mile any more than then
Wlll IN any other business, unless tho
can see their way clear TO f,,t,,rs
profit, and feel sure that the nrinciral
is safe.
The margins in the railroad huss
ness are very small; how small car
be illustrated by the fact that -
nan mao owned all the stock of an av-
eIase mile OF railroad In the United
states Tor the twenty-six years ending
~ lsu'' ms net profit would have av-
eraged only s1.43 per day.
He would have had to own four
Iniles-at an investment of $12O. oo0--
70 make the day wages of a brick mas
on In New York.
II his mile Of railroad had been IN
the northwest, instead of an avars -
inlle OF railroad for the country as a
who're, ne would have made for the
twenty years from 1882 to 1901 onIv
81 cents net profit a day.
New railroads either oparata a. :
loss or barely pay expenses d,,~,,,s =
their early years. This instances sa he
~ represents the situation the invest
~ AZ new railroad enterprises must
II takes courage, and faith In
tne tuture, to put large sums into
io'AAA oau extensions. When the dfrec
tors ana stockholders of railroads. and
the investing public, believe that tha
atrsuoe or the people toward rail-
loaus y unrriendly and harsh. they
cannon De blamed for hesitating.
AlInou8n the railroad offers a solid
ana substantial kind of Investment
the returns are very moderate. For
1sOs tnree-tenths Of all the railroad
STOCK OF the country paid no dividends
WhateVer, and the remaining seven
tehtns paid only AZ per cent. Invest
ors Ia railroads want reasonable RAJ
lurn on their money and they win IN
vest further in railroad securities a.
.ney peileve that the public's attift,da
- friendly. In a state such as This
mucn encouragement can he given
Ihem Dy demonstrating that tha attt-
tuae or the people Of the state - fair
and cordial. = Ao4A
Iexas did much for herself witb
railroad investors. when last year tba
legislature refused to pass a SINGLE
antl-railroad law. Other states could
do the same with profit
what will $50. 600 invested In
general merchandise store in tbia
state produce?
have recently received the anrra,
statements OF two representative MS
mess firms located in the AFtsso,,r,
slope country. The frst is engaged IL |
the hardware business ana "a rriad :
stock last year of $50, 900. or about ~
cost Of mile of railroad. Tha 90 ~.
business was $4,000 or $500 i dav ana
the net profit, were 10 per cent or "a
600, or 30 per cent on the san nm
stock. voV'0VV
a second firm Is engaged In thu
dry goods business and carried q stoc,- |
or 100000 or the value OF two rnilas ~ |
railroad. It's business was &1so 0of q. |
SoVV DAY and it's net profits were 4 |
per cent or $4,000, or 30 per cenf on !
the $4,000 stock. In the f4rst IN /
stance the return to the investor was
more imam four times the return to The
holoers OF dividend paying railroad |
STOCKS or North Dakota railroads. and |
~ the latter case, nearly three times
aS mucn. In the first case the return |
was seven times as much as the ay- /
eTage returns on railroad investments |
N the United States In 1909, and in |
the second case nearly 1--WE times.
nave the figures on the business |
OK two firms carrying small stock.
one or which did business OF $4,000 |
and made nearly per cent; the 9TH |
er doing business OF $4,000, making |
~ LIZ per cent. In neither case was
the stock more than $4,000. In the
nrst case the return was 4s per cent
on the average Investment III Aha
stock Of goods, and in the latter cost.
65 per cent.
There IL very little data available
70 show how the farmer would stand |
II he conducted his business on SET /
entiflc business lines. but such figures /
80 have resulted from recent investi /
cations are very interesting and sig
I'm both North Dakota and Mime
sofa this matter has been studied. Tor
! longer time II the latter state than
n the former. In this state the in
vestsgation II not vet complies ana the /
figures can hardly tie taken pet as IN
aicafing the real conditions. III Mimi
ssofa the dean or the state agricui-
Eural college states that be believes
ne wei managed farms will pay from
L2 10 IL per cent.