Mr. John P. Meany, in the _Railway Review_ of February 7, 1891, says: "It is safe to assume that the market valuation of the entire $4,500,000,000 of railroad stock in existence, would not average more than $30 per share, or, say $1,350,000,000 in all," and in his _Sun_ article he states that fully $500,000,000 of this stock is duplicated, so that the "live" stock outstanding is really but $4,000,000,000, which at $30 per share would have an aggregate value of $1,200,000,000. Mr. Meany also states that there are duplications of bond issues amounting to some $300,000,000 leaving the live outstanding bonds at $4,500,000,000 and many corporations failing to pay interest, some issues are selling as low as 12 per cent. of par, making it safe to call the average market value of bonds 90 per cent. of their face value, and their aggregate value would be $4,050,000,000, to which add value of "live" capital stock, $1,200,000,000, and the total market value of bonds and stock is, $5,250,000,000, being at the rate of $32,800 per mile for the 160,000 miles in operation.
After many years of familiarity with the turgid and obscure statements issued by American railway corporations, and which are usually of such a character that the more they are studied the less the shareholder knows of the affairs of the corporation, it is very refreshing to read the report of the Railway Commissioners of any one of the Australasian colonies, where every item of expenditure is made clear, and where words are not used for the purpose of misleading.
The last Victorian report shows this new and sparsely settled country as able to borrow money with which to build national railways, at three and one half per cent. per annum. How many American corporations are able to borrow money at such a rate? This saving in the interest charge directly benefits the public, and is due to national ownership, and a like saving will be made by the nationalization of American railways.
This report also shows that while the country is so rugged that in many cases the gradients are as great as one hundred and thirty feet per mile, and the cost of labor and supplies more than here, the roads are operated at less cost, as measured by the expense per train mile, than in the favored regions of the United States. The Kansas City, Fort Scott, and Memphis Railway is, admittedly, one of the best managed and most economically operated railways in the West, and with an abundance of very cheap coal;[11] low gradients and running more trains than do the Victorian railways should be operated much more cheaply, yet the cost of operating this road, as measured by the cost per train mile,--and this is the best possible criterion of economy in operation,--is one third greater than on the government owned railways of Victoria.