The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1912-11-06

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According to the estimates of the
national wealth ofthe United States
made by the Bureau of the Census
the value of the railways increased
but little more than half as fast as
the value of all property from 1890
to 1904.
/ From 1900 to 1910 the capital
value of agriculture increased from
$40, 4S9. 901, 164to $40, 991, 449, 900;
the capital value of manufactures
from So, ,256, 900 to $1S, 428,-
270, 900; the cost of road and equip
ment of the railways from $40, $685.
S1S,4oo to $14,3 1916. O99.
The gross value of the products
of manufacture increased from
$11, 400, 1921, 900 in 1900 to $2O,-
$40, 052, 900 in 1910. The total
operating revenues of the railways
increased from 81, 487, 044,814 to
50, $50, 1867, 435. Thus the increase
of 81.2 per cent in the gross value
of manufactured products was ac-
companied by an increase of 1861
per cent in manufacturing capital;
while the increase of 85 per cent in
the total operating revenues of the
railways was accompanied by an
increase of only 40.2 per cent in
their cost of road and equipment.
The capital value of agriculture
includes all farm property, land.
buildings, implements, machinery,
and live stock as enumerated by
the census. The capital value of
manufactures, as defined by the
census, includes the value of prop
erty employed for the purpose of
production, excepting rented prop
erty, but does not include any al
lowance for patent rights or good
will. The capital value of the
railways used in this comparison is
the cost of road and equipment"
as it stands on their books and as
reported by them to the Interstate
Commerce Commission.
/ The report of the Bureau of the
Census for 1900 indicated that the
gross capitalization of the indus
trial combinations then in existence
was more than twice as great as
their capital value. The gross
capitalization of the railways was
about IL per cent greater than the
cost of road and equipment in 1900
and % per cent greater in 1910.
The net capitalization of the rail-
ways, which is the amount for
which they are responsible to the
public, almost exactly conceded in
1910 with the cost of road and
equipment.
Because of the peculiar nature of
the industry. it is impracticable to
arrive at satisfactory and COM
parable estimate of the net return
on the capital in agriculture. The
greater similarity of the manufac-
turing and railway industries per-
mits estimates of the return on
capital that in broad and general
way are comparable. Approx
mately, the percentage of net re-
turn on the capital value of manu-
features in 1900 was 17.119 per
cent and that on the cost of road
and equipment of the railways
1850 per cent. In 1910, when the
capital value of manufactures had
increased 1868 per cent, the per-
centage of net return was 1904
per cent, while on the cost of road
and equipment of the railways,
which had increased 40.2 per cent,
the percentage of net return was
5.729 per cent. That is, in 1900
the percentage of net return on
capital in manufactures was nearly
four times as great as that on the
cost of road and equipment of the
railways; in 1910 it was over twice
as great. In both cases the inter
est on capital is included in net re-
turn.