The table shows the percentage of bonded debt to total market value of some of the more important railroad systems. Two trunk lines in the East, a north and south line in the middle West, and two transcontinental have been chosen. No attempt has been made to select railroads which would make a favorable showing. Indeed Pennsylvania, and Union Pacific, by reason of their recent heavy bond issues, probably compare unfavorably with others which might have been chosen. The figures showing the par value of bonds outstanding have been taken from last annual reports, with additions made for recent issues. The figures showing the market value of stocks are based on the amounts outstanding April 1st, 1908, at the market price. Par value of Approx. market Per cent bonds outstanding value of stock of bonds outstanding to total value Pennsylvania $270,974,645 $361,000,000 42.8 New York Central 255,414,845 174,000,000 59.4 Illinois Central 156,053,275 120,000,000 56.6 Great Northern 207,517,939 260,000,000 44.3 Union Pacific 274,827,000 324,000,000 45.9 In view of the enormous decline which has occurred in railroad stocks during the past eighteen months, the showing above is truly remarkable. It is plain that the entire bonded debt of any of these standard railroads is less than 60 per cent of the total market value of the property, while in the cases of the Pennsylvania, Great Northern, and Union Pacific, _more than half of the present market value of the property could be erased before the lien of the bonds least well secured would be impaired_. Of course, where the entire bonded debt is protected by such a margin, it is evident that the underlying bonds (the prior liens and first mortgages) are protected by several times as great a margin and their position is correspondingly strengthened. The foregoing analysis, in the judgment of the writer, affords convincing proof not only that the prevailing want of confidence in railroad obligations is without foundation, but that railroad bonds compare favorably in point of safety with any other form of investment. It remains to point out the amount of income and degree of convertibility which they afford and the extent of appreciation in value which they promise. It is impossible to do more than indicate the general characteristics of railroad bonds in these particulars.