. Cost, capitalization and estimated value of American railways; an analysis of current fallacies . 600 Block signals, 911 miles at $1,200 Right of way, terminals and yards, 970 miles at $35, estate, shops, tools and material $3,984,000 1,640,000 10,548,000 233,400 Total $38: 5, 16; 800,000748,000405,400 093,200,950,000850,000 $100,846,600 The average cost of the last fifteen road engines purchased forthe Alton was over $17,200 each, and of 1400 freight cars over$1,000 each. The estimate for right of way assumes that this property ofthe Chicago and Alton is at least 25% more valuable t
. Cost, capitalization and estimated value of American railways; an analysis of current fallacies . 600 Block signals, 911 miles at $1,200 Right of way, terminals and yards, 970 miles at $35, estate, shops, tools and material $3,984,000 1,640,000 10,548,000 233,400 Total $38: 5, 16; 800,000748,000405,400 093,200,950,000850,000 $100,846,600 The average cost of the last fifteen road engines purchased forthe Alton was over $17,200 each, and of 1400 freight cars over$1,000 each. The estimate for right of way assumes that this property ofthe Chicago and Alton is at least 25% more valuable than theaverage for Illinois, which in the table on page 129 is calculated 188 to be $27,464 per mile. Some of the Altons right of way inChicago is worth more than $350,000 an acre. This estimate of cost of reproduction leaves a margin of over$21,000,000, or slightly more than the sum of the common stockto represent the brains or water put into the property on thereorganization. Judged by the results in nine years, the margin representsthe sagacity, skill and good management, which, according to. * i 18 Said to be The Largest Passenger Locomotive in the WorldChicago and Alton 1907. Wellington, is entitled to capitalization, and which thus far inthe case of the Alton has only redounded to the benefit of thepublic in improved service at reduced rates. As an illustration of how an American railway can run toseed in one of the richest territories in the union, and then beresuscitated by the timely application of capital mixed withrevivifying water, the history of the Alton affords instructivematerial for study. If the process had been delayed until thepresent time, the resuscitation could not have been effectedwithout saddling the property with additional fixed chargesamounting to more than $1,000,000 a year, or 5 per cent, on$20,000,000. To the application of this kind of water—defossilizing oldmethods with the energy and sagacity of modern managementthat only great prizes can co
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