256 Statistics of Railways in United States. 



Moreover, it is well known that many railroads are built and 

 operated, not for their own immediate earnings but to give value 

 to other property of the companies, notably to lands, from the 

 sale or lease of which the companies derive profits. Again, 

 many railroads are built, not for present but for future profits, 

 after they shall have induced settlement of their territory; and, 

 furthermore, numerous branch roads have been built as defensive 

 measures to prevent rivals from occupying territory ; and in 

 many cases earnings are used in betterment of propert}' instead 

 of distributing it as dividends. In all these cases the roads have 

 value, although they are not paying dividends. 



Taking all these matters into account, it does not appear that 

 the railroad stocks of the country have, collectively, been watered 

 to any great extent, if hy " watering " is meant expanding nom- 

 inal values above actual values. 



Concerning dividends paid on stock, Mr. Adams presents a 

 table showing that 63.76 per cent of all stock paid no dividends ; 

 that but 6.47 per cent paid less than 4 per cent ; that 25.26 per 

 cent paid from 4 to 8 per cent, the remainder paying above 8 per 

 cent. It appears that in the northeastern states much the high- 

 est dividends were paid, while in the west, so far as dividends 

 are concerned, the stockholders have to Avait for future develop- 

 ments. 



The total passenger mileage for the year was 11,847,785,617, a 

 slight increase over the previous year. The total freight mileage 

 was 76,207,047,298, an increase of nearly 10 per cent over that of 

 the previous year. The gross earnings of the year were 

 $1,051,877,632, and the operating expenses $692,093,971, leaving 

 as the income from operations $359,783,661. The income from 

 other sources was $126,767,064, and the total deductions from 

 income were $384,792,138, lea^dng as the net income $101,758,587, 

 out of which there was paid as dividends on stock $89,688,204. 



The magnitude of the railway interests of the country is set 

 forth in the above enormous figures. It is still further empha- 

 sized by the fact that nearly three-quarters of a million men are 

 in the employ of this industry. Assuming that each such em- 

 ploye supports two others besides himself, it is seen that the rail- 

 road interest supports two and a quarter millions, or more than 

 one thirtieth of the inhabitants of the country. 



H. G. 



