. The American railway; its construction, development, management, and appliances . ithout interest. The little chart given below tellsan interesting, although a not over-attractive story. Average Dividend Paid on Total Capital Stock. 1 2K;^ \. ..-^^^ *^<.. 1 i 2 ^ 1 -- 2;* !-■ 1876 1877 j 1873 1 1879 , 1880 j I80I 1082 1803 1884 1885 | 1886 1807 laee It shows that, comparing the aggregate of all the railroadstocks of the country with the aggregate of all dividends paid,the holders of stock realized an average of :^ on their invest-ment in 1876. In 1S78 it had fallen to less than 2AI Fr
. The American railway; its construction, development, management, and appliances . ithout interest. The little chart given below tellsan interesting, although a not over-attractive story. Average Dividend Paid on Total Capital Stock. 1 2K;^ \. ..-^^^ *^<.. 1 i 2 ^ 1 -- 2;* !-■ 1876 1877 j 1873 1 1879 , 1880 j I80I 1082 1803 1884 1885 | 1886 1807 laee It shows that, comparing the aggregate of all the railroadstocks of the country with the aggregate of all dividends paid,the holders of stock realized an average of :^ on their invest-ment in 1876. In 1S78 it had fallen to less than 2AI From that 444 STATISTICAL RAILWAY STUDIES. date to 1885 the record makes a curve ending just above 2^. Aslight rally is indicated for 1886 and 1887, but 1888 carries it downto ^. The stock of many roads has paid no dividend what-ever these later years, and the lines whose stock proves a goodinvestment at par are very few. Net Earnings per Mile.—Although the studies of the financialquestion already made undoubtedly point out the true drift of Net Earnings and Mileage railway business, yet one more comparison is worth making, bothfor its bearing on the question of profits and the study of the in-fluence of profits on railway building. The upper one of the twocharts given herewith is the record of net earnings per mile ofroad in operation, and is based on the reported net earnings lessthe interest-charge. It therefore shows the average number ofdollars each mile had earned, after paying all expenses and the in-terest on its debt. This money, then, is the clear amount eachmile could apply each year to pay the principal of its debt andthe dividends on its capital stock, or to use for improvements, suchas rolling stock, stations, better road-bed, new rails, or any otherbetterments which might seem advisable. In 1876 this sum was $1,264; in 1880 it was $1,798, sincewhich time it has suffered a serious decline, until in 1888 it wasonly $650. It is the story of the previou
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