Democratic Sentinel, Volume 15, Number 49, Rensselaer, Jasper County, 25 December 1891 — Earnings of Railroads. [ARTICLE]

Earnings of Railroads.

The advance sheets of the introduction to Poor’s Manual for 1891 show that the number of miles of railroad completed in the United States at the end of the last calendar year was 166,817, and that the number of lniles constructed during the year was 6,739. Since then enough stack has been laid to make the total mileage to this date 170,000' miles. The inorease in share capital during the year was $145,140,260, which was equal to a little more than $25,300 for each mile of road constructed during the year. The increase in the funded debt of the roads during the year was $277,636,254, which was equal to not much less than $50,000 per mile of road constructed. It will, however, be understood, of course, that the increase in funded debt did not necessarily; or probably, all fall on the new roads constructed. The total amount of share capital at £he end of the year was $4,640,239,578 and the total amount of funded debt was $5,105,902,025. This gives a total of share capital and funded debt of $9,746,141,603. This total is equal to more than $58,400 for each mile 1 of road in existence at the end of the year. Mr. Poor states that, counting in all forms of indebtedness, the cost of the roads as measured by the total was $59,638. or close to $60,000 per mile on the average, the total indebtedness having been $10,122,635,900. One would expect the average indebtedness per mile to deorease, but according to Mr. Poor it increased last year $1,364. Regarding net earnings, Mr. Poor reports that in 1890 the average was 3.4 per cent., against 3.3 per cent, in 1889, 3.2 in 1888, 3.9 in 1887, 3.7 in 1886, and 3.4 in 1885. These are the averages, of course, on the nominal capital. If we suppose the actual capital invested to be one-half the nominal amount, which is in accordance with Mr. Poor’s estimate in former years, we find that capital invested kt railroads pays on the average fairly satisfactory profits. The earnings pay interest on the funded debts, which in the aggregate exceed the actual capital invested, according to Mr. Poor’s estimate, and give an average of about Si per cent, for dividends besides. While it is true that many roads do not earn dividends, or even fixed charges, yet on the whole the railroads of the country are paying concerns. Those which are not have been prematurely built, or built where railroads are not needed, or wrecked by intentionally or ignorantly bad management. It will be observed that there was a slight improvement last year over the year before in net earnings, which, however, were still below those of 1886 and 1887. Lightning played a serious trick upon Geo. Rood, a resident of Jewett, Conn. A thunderbolt struck him, causing . severe but not dangerous burns. Since the accident his body seems full of electricity. When he places his hands together they adhere, and when his feet touch it is difficult to separate them. Sbvebal pigs were missed by a farmer in Gladwin, Mich. After watching several nightß for the rogue, the Vjigilance of the sentinel was at last rewarded. He saw a snake carrying off another young pig. The snake was dispatched, and found to measure over nineteen feet in length.