Railroads -- United States; Railroads -- United States -- Finance
In the years following 1897 large sums have been spent for betterments
and enlargements. Some $68,500,000 have been invested from the proceeds
of the sale of prior lien bonds and of miscellaneous assets, and
over $18,000,000 have been temporarily withdrawn from income for the
same purpose.[640] Grades have been reduced, lines straightened, new
branches built, real estate acquired, track relaid and ballasted,
bridges strengthened and renewed, equipment rebuilt and increased in
amount, and other similar betterments undertaken. It is a work which
all the great American systems have carried on, but the Northern
Pacific has surpassed even the Union Pacific in the extent of its
operations. Ordinary maintenance requirements have not meanwhile
been neglected, and in 1906 and 1907 the Northern Pacific set aside
$2,000,000 for depreciation of equipment, which is over and above
the other sums which have been mentioned. The company owned 1255
locomotives on June 30, 1907, of an average weight of 174,000 pounds;
in 1898 it had owned 542 of an average weight of 104,000 pounds. It had
42,000 freight cars in 1907 with an average capacity of over 33 tons;
it had possessed 18,500 in 1898 of an average capacity of 22 tons.
Seventy-five per cent of the main line was laid with track of 72 pounds
or over in 1906, but only thirteen per cent in 1898. In consequence
heavier trains are run,[641] at a less expense per ton, and the net
revenue is correspondingly increased. Even the liberal expenditures
which have hitherto been made are insufficient, however, for present
conditions, and the stockholders have approved a proposal to issue
$93,000,000 of new common stock at par for the purpose of extending the
Northern Pacific’s mileage and facilities.[642]
The endeavor to stimulate traffic to fill the trains has led to
important developments. In order to increase the exchange of
commodities between their territory and the Middle West, to establish
stable conditions on transcontinental business and thereby to secure
back loading for their cars, the Great Northern and Northern Pacific
in 1901 arranged for the purchase of the Burlington system which
connected both their lines with Chicago. The refusal to share their
purchase with Mr. Harriman led to the competitive purchase of Northern
Pacific stock by rival interests, and to the retirement of the Northern
Pacific preferred, but did not prevent the consummation of the
deal.[643] This purchase has been a profitable one. The Burlington has
paid in dividends upon its stock almost enough to cover the interest on
the bonds issued to acquire it, and the indirect effects of its control
have satisfied expectations. Indeed, the east-bound lumber traffic has
so developed that the Great Northern has recently raised its lumber
rates in order once more to equalize east- and west-bound shipments.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account