856 KaTisas Academy of Science. 



trifle higher than the average rate on those in group VIII, but that 

 since 1905 they have decreased rapidly until, with the report for 

 the year ending June 30, 1908, the average passenger rate was about 

 two cents per mile. 



Plate II shows the revenue per ton per mile for all the roads in 

 the United States, and also for those in group VIII. From it one 

 can see that the average for the United States has dropped from 

 ninety-five one-hundredths of a cent per ton per mile, the rate in 

 1890, to seventy-six one-hundredths of a cent per ton per mile in 

 1905. Group VIII is about two- tenths of a cent higher, and this 

 rate is about one-twentieth what it would cost to haul by wagon. 



Now, comparing the Union Pacific, the Rock Island, and the 

 Santa Fe, in this state, with group VIII, we find about the same 

 conditions existing in the freight rate as in the passenger rate, 

 namely, that the freight rate on the individual roads is about two- 

 tenths of a cent higher than the average for the group until 1905, 

 after which time it begins to drop, and at the present is about 

 ninety-five one-hundredths of a cent per ton per mile. This cer- 

 tainly looks as if it were cheap enough. 



We will now turn to the dividends paid on the stock from the 

 earnings due to the above rates. Plate III shows the average divi- 

 dends paid on the stock of all the roads in the United States, and 

 also in group VIII, beginning with the year 1890 and ending with 

 1905. From this it will be seen that the railroads have paid divi- 

 drtnds of from 4 per cent, to 6 per cent, on all stock since 1901. 

 Taking the same three roads in Kansas, we find that from June 30, 

 1907, to June 30, 1908, the Santa Fe paid 5| per cent, on common 

 and 5 per cent, on preferred, the Union Pacific 10 per cent, on 

 common and 4 per cent, on preferred, and the Rock Island 5| per 

 cent, on common. 



Tliese figures do not give the actual percentage on the invest- 

 ment, f<jr the reason that the dividend is declared on the face value 

 of the stock and not on the market value. For instance, the pres- 

 ent market value of Santa Fe common is about 97|,, and preferred 

 102|-, Rock Island common is 24, preferred 60; Union Pacific 

 common is 180, preferred 95; {so that if a man buys Rock Island 

 common at 24 and receives o| per cent, dividend, he is actually re- 

 ceiving 22.9 per cent, interest on his investment, but if he buys 

 Union Pacific at 180 and receives 10 per cent, dividend, his actual 

 rate of interest will be 5| per cent. 



