Evening Republican, Volume 20, Number 7, Rensselaer, Jasper County, 8 January 1916 — BRIGHT FUTURE FOR ROADS [ARTICLE]

BRIGHT FUTURE FOR ROADS

Expert Sees Nothing but Prosperity for American Lines—Comparison of Capitalization. A study of some recent comparative statistics issued by the bureau of railroad economics ought to repay the investor whose vision is not limited by stock market prices. So far as they could be compared, the railroads of 38 countries were analyzed and certain facis brought out that should indicate roughly the development to be expected in the United States. For instance, in the number of of line operated per 100 square mileSl of area, our country fs behind practically all of the older nations of commercial importance. Our figure is 8.4, France’s 12.18, Austria’s 12.2, Denmark’s 15.45, Germany’s 18.08, Holland’s 18.3, Hungary’s 10.61, Italy’s 9.78, Switzerland’s 19.38, Belgium’s 25.78, and the United Kingdom’s (England, Scotland, Ireland and Wales) 19.3. In this .respect we are ahead of such countries as Sweden, Cuba, Bulgaria, Roumania, Spain, Portugal, the South American countries, New Zealand and Australia. In miles of line operated per 10,000 of population we are under Australia (excepting New South Wales), Canada and the Argentine, and we are far above the old countries named in the preceding paragraph. It is reasonable to predict that our figure of 26.15 miles of line operated per 10,000 of population will fall toward the 5.71 of Germany or the 5.13 of the United Kingdom. It will fall faster than the figure of miles operated per 100 square miles of area will rise.

Our population growth will continue steady and rapid; the growth nf railway mileage will be much slower in proportion, writes John M, Osklson in the Chicago Daily News. Our railroad capitalization (upon which interest and dividends most be earned) is $63,535 a'mile; that of the United Kingdom $277,147; of France $148,463, of Germany $116,365, of Switzerland $122,010. We compare best with Canada’s $64,054. As population grows and traffic becomes denser the capitalization of our roads will increase.