CORNELL UNIVERSITY LIBRARY Bureau of Railway Economics Established by Railways of the Dnited States for the Scientific Study of Transportation Problems RAILWAY STOCKHOLDERS December 31, 1917 Cornell University Library HE2236 .B95 1919 Railway stockholders, December 31, 1917. olin 3 1924 030 123 461 Consecutiye No. 140 Miscellaneous Series No. 33 WASHINGTON, D. C. 1919 BUIiLEO^INS Oi' THE BUREAU OF RAILWAY ECONOMICS MONTHLY BULI/E'nNS^ The monthly swnjaaxy of Beveniies and Expenses of Steam Boads in the United States has bejBn issued regularly since July, 1910. ; FoUo\ring is the Ust of Bialleims f or the last twd^ Consecatiye ' Monthly Report ' '- ^^ ' „ ■'■N'lunb.er. ' ■"''•:; .'Series.. ,.; /.'M^nth.' oif^—-'.. '.;,'_'> ■ 126. , 96. May, ?L918. ^ 127. ' 97. June, 1918. 129. 98. Jflly, 1918. 130. 99, August, 1918. 131. iOO;! : September, 1918. 132. :' 101. , detbher, 19118. ■ , 133. \ 102. ; \ Noyembei--, 1918. k 134. 1?03. ;Deqembi|rjl918.; S 135.: 104.. January, 1919. y 137. iOS.V February, 1919. *^ 1^ . V . Sl()6i-\ : Miarcih, idlOi :, 139. 107. April, 191^. V y, The following issues, are out of print and no^^opj(e|.are available: Consecutive ^^MointhlyJBepfort/' ■. .' ■■'.;'",'."" ,',"-;'■<.',)■' ".',.' ,' .', Nmnber. i, ,. Series. Month ofr^ ■-.-.' 1. -..'";'; J,,.,.:-;il . 'July, 1910,;,.^', '-' ■' 3: 3. Septeinb^ 19lQi ' 7. i 6. : Oc^iober, 1910^ r 9. 7. Decenjiber, 1910. * itf. 8. Januairy, l9ll. > , , 12, 9. ; February, 1911. ,13j: 10. March, 1911. 19. : ' IS' June,19il. ' 22. 15.- August, l&ll, 26. ; . 17. October,, 1911. 27. 18.^^ ijovemberj 1911. 29. 19. necember, 1911, '80. 20. Januajy, 1912. S2; 21: , February, 1912. 33; 22. MaM". 1912. < 49. ; 35. April, 1913. 51.. , 37. June, 1913. - 56i,/ 41. October, 1918. , 65. / -49.;:^; Jurieyl914; ' -. ' (Cpntinjied to Page 3 of Cover); : Railway Stockholders December 31, 1917 Bureau of Railway Economics Washington, D. C. (; q \-^\^\-\ ! July, 1919 'JN!V|;;nfJ'l V, tf Hi' n A,f^ V .m:h|''i}io J VI ir. jiiHViKiij VJlA'SiMI I 14 t" /^^37/3 's^ L. C. CARD A 19-440 PREFATORY NOTE Bulletin No. 94 of the Bureau of Railway Economics was a compilation of the number and holdings of railway stockholders on June 30, 1915. A similar compilation was prepared by the Bu- reau as of December 31, 1916, but publication was held up by the war. The present bulletin not only incorporates the unpublished data for 1916, butl)rings the record down to December 31, 1917. Inasmuch as this was the date on which the railway system of the United States passed into the hands of the government for war operation, the statistics here presented are significant as indicating how many persons owned the railways, and what was the nature and amount of their holdings, at the moment when their properties were taken over temporarily by the Federal government. Railway reports filed with the Interstate Commerce Commis- sion show the number of stockholders of record at the last closing of the stock books of each company on or prior to the respective •dates to which the statistics apply. If the stock books are not closed during the year, the statistics are those of the close of the year. This bulletin is based on reports to the Commission of operat- ing and non-operating companies of all classes, except switching and terminal companies. The statistics are virtually complete for each class, although it has been necessary to omit a few of the smaller roads that filed incomplete returns or no returns at all. Such omissions are so unimportant as to be virtually negli- gible for practical and comparative purposes. The statistics are presented according to class and territorial district, following the lines laid down by the Interstate Commerce Commission. Roads of Class I are those operating roads, to- gether with their non-operating subsidiaries, whose annual oper- ating revenues are above $1,000,000 ; similarly, Class II comprises roads with annual revenues between $100,000 and $1,000,000, and their subsidiaries; while Class III comprises roads with annual revenues below $100,000, and their subsidiaries. The Eastern, Southern, and Western districts correspond to the territorial classification of the Commission. Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030123461 RAILWAY STOCKHOLDERS: DECEMBER 31, 1917 Summary. Stockholders of the railways of the United States numbered 647,689 on December 31, 1917, as compared with 612,889 on December 31, 1916, and 626,122 on June 30, 1915. The average holdings per stockholder, par value, amounted to $13,966 in 1917, as compared with $14,321 in 1916 and $13,796 in 1915. The foregoing statements apply to all roads. For roads of Class I and Class II, operating 96.6 per cent of the total railway mileage, it is possible to exclude to a considerable extent capital stock held by or for other railway companies. Making this ex- clusion, the approximate amount of railway stock in the hands of the general public on December 31, 1917, was $6,377,551,082. This stock was in the hands of 636,208 holders, the average amount of their holdings being $10,024. The corresponding re- turns for 1916 were $6,202,673,485 of capital stock in the hands of the public, 600,671 stockholders, and average holdings of $10,326 ; for 1915, $6,004,496,162 of capital stock in the hands of the public, 607,630 stockholders, and average holdings of $9,882. These statements of the number of railway stockholders for each year show merely the number of distinct holdings of stock, and have no reference to the number of individuals for whom the stock was held. The stock holdings of one bank or of one corporation may belong, indirectly, to thousands of individuals, depositors of the bank or stockholders of the corporation. Thus the number of individuals who possessed ownership equities in the American railways on December 31, 1917, was far greater than 647,689, the number of actual holdings of stock, for it may safely be assumed that an overwhelmingly large proportion of the stock held by corporations, estates and similar holders (who entered but once each in the total of 647,689) belonged actually, though indirectly, to millions of individuals. Number of Stockholders, December 31, 1917. Table I shows the number of roads, operated mileage, and total number of stockholders on December 31, 1917, grouped according to class and district. TABLE I Number of Stockholders Railways of the United States, December 31, 1917. Number Miles Number Class and District of of line of roads operated stockholders All classes: United States 1,272 259,485 647,689 Eastern District 584 64,829 340,586 Southern District 275 50,378 58,301 Western District 463 144,278 248,802 Class I (operat. and non-operat.) : United States 572 232,798 627,930 Eastern District 333 59,089 332,624 Southern District 78 42,852 53,226 Western District 161 130,857 242,080 Class II (operat. and non-operat.) : United States 272 18,006 8,947 Eastern District _ 88 4,067 3,470 Southern District 62 4,650 2,659 Western District 122 9,289 2,818 Class III (operat. and non-operat.) : United States 428 8,681 10,812 Eastern District 113 1,673 4,492 Southern District 135 2,876 2,416 Western District 180 4,132 3,904 The total number of stockholders of the 1,272 railway com- panies on December 31, 1917, was 647,689. The operated mileage was 259,485 miles. There were 847 operating roads, with 560,621 stockholders, and 425 non-operating companies, with 87,068 stockholders. The number of stockholders per company averaged 509. Stockholders of the Eastern railways numbered 340,586, or 52.6 per cent of the total; stockholders of the Southern railways, 58,301 or 9.0 per cent; stockholders of the Western railways, 248,802 or 38.4 per cent. This indicates nothing as to the resi- dence distribution of the stockholders, for residence and owner- ship do not necessarily correspond. A man may live in the East, South, or West, but may own stock in any railway throughout the United States. It should be borne in mind that the number of stockholders shown in Table I is the number of distinct holdings of stock, and does not necessarily represent the number of separate individual owners. On the one hand, the aggregate contains duplications arising from the fact that a person may own stock in two or more railway companies ; on the other hand, and of much greater significance, blocks of stock are often held in trust for multiple beneficiaries, or are held as investments by banks, insurance com- panies, and educational, benevolent, or other institutions in which many individuals have an interest, although not directly. To say that there were 647,689 railway stockholders in 1917 is therefore very much to understate the total number of indi- viduals who had a direct or indirect interest in the financial status of the railways, and in the equities represented by rail- way ownership. Twenty Largest Stockholders December 31, 1917. In its annual report to the Interstate Commerce Commission, each railway of Class I and Class II is required to list the names of the twenty security holders who at the date of the latest closing of the stock book or latest compilation of stockholders, held the largest amount of stock in the respondent. Table II, a summary of these reports for Class I, divides these twenty largest stockholders into classes, and shows the par value of their holdings by class and by district. TABLE II. Summary of Lists of Twenty Largest Stockholders, Railways of Class I, December 31, 1917. Par value of holding Class of stockholder United Eastern Southern Western States District District District Individuals _ ;.. — $718,981,544 $274,664,052 $165,675,150 $278,642,342 Railway companies 1,020,726,150 437,492,350 130,035,150 453,1'98,650 Trust companies holding for railways _ 420,277,208 75,379,150 59,847,650 285,050,408 Other holders for railways 86,705,950 55,479,850 11,147,800 20,078,300 Trust holdings (beneficiary not stated) - 405,432,750 58,431,800 52,291,200 294,709,750 Other trust companies and banks .- 111,504,150 9,990,150 68,529,000 32,985,000 Other corporations or part- nerships 554,871,700 219,797,000 73,996,200 2,61,078,500 Estates _ - 19,153,850 6,873,150 1,901,000 10,379,700 Insurance companies 28,324,050 16,808,450 3,440,100 8,075,500 ' Total $3,365,977,352 $1,154,915,952 $566,863,250 $1,644,198,150 Table II shows clearly and convincingly the diversity of rail- way stock ownership. Of the $3,365,977,352 of railway stock representing the large holdings summarized in Table II, indi- viduals hold directly stock to the par value of $718,981,544, or 21.4 per cent. The $1,527,709,308 of stock held by or for rail- way companies is not a concentrated holding, but really is held for and belongs to all the stockholders of those companies. The $516,936,900 stock holdings of trust companies and banks belong to countless depositors and other beneficiaries ; the stock owned by insurance companies belongs to their policy holders ; the securities held by any corporation belong to the stockholders of that comporation. When it is remembered that the savings banks of the country represent over 10,000,000 depositors, and that the life insurance companies alone (although all are not represented in Table II) have nearly 40,000,000 individual policy holders, it is evident that the widespread ownership of the rail- ways, while indirect, is an undeniable fact. This same fact is strikingly brought out in a statement re- cently issued by the Interstate Commerce Commission, showing that 8,801 out of the 627,930 stockholders of railways of Class I held about one-half the number of the outstanding shares of stock of those railways. At first sight this appears to indicate great concentration of railway stock in the hands of a relatively small number of holders, but further analysis shows that more than five-sixths of the total number of shares held by the 8,301 large stockholders were in the hands of railway and other cor- porations, voting trustees, and estates, the remaining shares being individual holdings. These individual holdings comprised 8.2 per cent of the $8,603,190,028 of total outstanding stock of railways of Class I. It may safely be assumed that the great bulk, if not the whole, of the stock held by corporations, trustees, and estates represented blocks of stock held in trust or for corporate investment, in which many individuals had an indirect interest. In the light of this analysis, the seeming concentration of railway stock in the hands of a few individual holders is largely contra- dicted by the actual fact that only 8 per cent of the total out- standing stock is concentrated in large individual holdings, while the remaining 92 per cent is distributed among hundreds of thou- sands of small holdings, or is held in trust for, or for the benefit I of, many millions of individuals. still further proof appears in the stock holdings of various benevolent organizations, and of universities and colleges. Rail- way stocks held by 34 representative American universities and colleges with a total enrollment of approximately 100,000 stu- dents, amount to $8,646,344 (par value). With their railway bond holdings of $46,552,344, the total investment in railway securities of these schools amounts to more than a third of their total productive funds. It has been stated, in fact, that the ownership equities of the American railways are in the hands of more than 50,000,000 people. Holdings per Stockholder, December 31, 1917. Table III shows the par value of gross capital stock outstand- ing on December 31, 1917, the total number of stockholders, and the average amount of stock per stockholder. TABLE III Average Holdings Per Stockholder Railways of the United States, December 31, 1917. Capital stock Class and District outstanding Par Value All classes: United States $9,045,431,809 Eastern District 3,559,686,211 Southern District 1,203,202,068 Western District 4,282,543,530 Class I (operat. and non-operat.) : United States 8,603,190,028 Eastern District 3,433,734,454 Southern District 1,089,848,118 Western District 4,079,607,456 Class II (oper. and non-oper.) : United States 335,471,297 Eastern District. 107,702,407 Southern District 80,707,610 Western District 147,061,280 Class III (oper. and non-oper.) : United States 106,770,484 Eastern District 18,249,350 Southern District. 32,646,340 Western District 55,874,794 Average Number amount of of stock per stockholders stockholder 647,689 $13,966 340,586 10,452 58,301 20,638 248,802 17,213 627,930 13,701 332,624 10,323 53,226 20,476 242,080 16,852 8,947 37,495 3,470 31,038 2,659 30,353 2,818 52,186 10,812 9,875 4,492 4,063 2,416 13,513 3,904 14,312 10 Capital stock outstanding on December 31, 1917, amounted to $9,045,431,809. The capital stock of the Eastern railways repre- sented $3,559,686,211, or 39.4 per cent of the total ; of the South- em railways $1,203,202,068, or 13.8 per cent; of the Western railways $4,282,543,530, or 47.3 per cent. The average holding per stockholder was $13,966 for the United States as a whole. In the East the average was $10,452 ; in the South it was $20,638 ; in the West, $17,213. As in earlier years, the average holdings for railway companies of Class II were considerably larger throughout than those for Class I. This was due to the relatively small number of stock- holders per company, a considerable number of companies of this class being controlled by other corporations and their stock being held in large blocks. The same thing is true of companies of Class III, but the comparatively low capitalization per company results in a small average holding per stockholder. In the case of many controlled railway companies, the number of stock- holders on their books is the sum of the number of directors (holding one qualifying share of stock each) and the controlling corporation. To obviate the duplications resulting from intercorporate hold- ings of railway stock. Table IV eliminates them as far as is prac- ticable from available records. Railway Stock in the Hands of the Public on December 31, 1917. Since 1915 the Interstate Commerce Commission has required roads of Classes I and II to report the names and holdings of their twenty largest stockholders. Generally speaking, wherever one railway company has a controlling interest in another railway company through stock ownership, its name will appear in the list of the twenty largest stockholders of the controlled company. By ehminating such holders and their holdings, so far as they may be railway companies or trustees holding for railway com- panies, it is possible roughly to approximate the amount of stock held by the public, and the number of stockholders owning such stock. The result is only an approximation, as it necessarily can take no account of small holdings by railway companies, but a large part of the duplication due to intercorporate railway hold- ings can certainly be eliminated by the method outlined. Table IV gives the results of such an elimination. 11 Railways of Classes I and II operated 250,804 miles of line on December 31, 1917, or 96.6 per cent of the total operated mileage on that date. Table IV shows, first, the outstanding stock and total number of stockholders of railway companies of Classes I and II ; second, the number of cases of stock held by or for other railway companies, reported as among the twenty largest hold- ings of each company's stock, and the amount of stock so held; deduction of railway holdings and number of stockholders from the total produces as a result, third, the amount of stock in the hands of the general public and the number of stockholders cor- responding to such stock. TABLE IV Railway Stock in the Hands of the Public: December 31, 1917 (Roads of Classes I and II, with annual operating revenues above $100,000) United Eastern Southern Western Item States District District District Number of roads 844 i21 140 283 Miles operated _ 250,804 63,156 47,502 140,146 Number of stockholders 636,877 ,336,094 55,885 244,898 Total stock outstanding J8,93S,661,325 $3,541,436,861 $1,170,555,728 $4,226,668,736 Av. holding per stockholder 14,035 10,537 20,946 17,259 Held by or for railways: Number of railway holders..... 669 391 108 170 Amount of stock held _.....$2,561,110,243 $995,382,218 $247,830,807 $1,317,897,218 In hands of public:* Number of stockholders 636,208 335,703 55,777 244,728 Amount of stock held $6,377,551,082 $2,546,054,643 $922,724,92a $2,908,771,518 Av. holding per stockholder.. 10,024 7,584 16,543 11,886 •Approximate. The total number of stockholders of railway companies of Classes I and II on December 31, 1917, was 636,877, while their total capital stock was $8,938,661,325. The average holding per stockholder was $14,035. Deducting from the aggregate amount of stock and number of stockholders, respectively, the $2,561,110,243 held by or for other railway companies, and the 669 railway companies by or for whom held, the approximate net amount of stock in the hands of the public becomes $6,377,551,082, while the number of holders of net stock was 636,208. This reduces the average holding per stockholder to $10,024. The corresponding average in the East was $7,584, in the South $16,543, and in the West $11,886. 12 Comparison of 1917 with 1916 and 1915. Table V compares the statistics of Tables I and III, all classes - of roads for the United States combined, with corresponding sta- tistics for December 31, 1916, and June 30, 1915. The statistics for 1915 are from Bureau of Railway Economics Bulletin 94, while those for 1916 are from hitherto unpublished tabulations. TABLE V Comparative Statistics: 1915, 1916, and 1917 United States — All Classes Item Miles operated- Capital stock No. of stockholders..... Average holdings per stockholder December 31, 1917 December 31, 1916 June 30. 1915 259,485 $9,045,431,809 647,6891 $13,966 259,509 257,211 ?S,777,052,01l|$8,63S,286,892 612,8891 626,122 Inprease or decrease, 1917 compared with 1916 Amount ?14,321 $13,796 !,379,79S 3.1 34,8091 5.7 Per cent d 355 d2.5 1915 Amount Per cent $407,144,917 21,567 $170 The capital stock shown for 1917, $9,045,431,809, was greater by $268,379,798, or 3.1 per cent, than in 1916, and $407,144,917, or 4.7 per cent, greater than in 1915 (June 30) . The number of stockholders was 647,689, which was greater than in 1916 by 84,809, or 5.7 per cent, and greater than in 1915 by 21,567, or 3.4 per cent. Average holdings per stockholder were $13,966 in 1917, com- pared with $14,321 in 1916 and $13,796 in 1915. The average for 1917 was lower than in 1916 by $355, or 2.5 per cent, but greater than in 1915 by $170, or 1.2 per cent. Table VI reduces the comparative statistics of Table V to the basis of stock in the hands of the public and the number of holders thereof. For the reasons already given above, the table applies only to railway companies of Classes I and II. 4.7 3.4 1.2 13 TABLE VI Comparative Holdings in the Hands of the Public: and 1917 (approximate) United States — Classes I and II 1915, 1916, December 31, 1917 December 31, 1916 June 30, 1915 1 Increase or decrease, 1917 compared with Item 1916 1915 Amount ^^.^ 1 Amount ^^^^^ \ 250,804 $6,377,551,082 647,689 $10,024 250,215 248,395 $6,202,673,485 $6,004,496,162 612,889 626,122 $10,326 M_SS2 $174,877,597 34,809 •d $302 :;apital stock (net) lo. of stockholders U-erage holding's per stotikholdpr 2.8 5.7 d2.9 $373,054,920 21,567 $142. 6.2. 3.4 1.4 1 Capital stock in the hands of the public approximated $6,377,- 551,082 in 1917, which was greater by $174,877,597, or 2.8 per cent, than in 1916, and $373,054,920, or 6.2 per cent, greater than in 1915 (June 30). The number of stockholders was 636,208, which was greater by 35,537, or 5.9 per cent, than in 1916, and 28,578, or 4.7 per cent, greater than in 1915. The average amount of net stock per stockholder was $10,024 in 1917, compared with $10,326 in 1916 and $9,882 in 1915. This was a decrease of $302, or 2.9 per cent, as compared with 1916, and an increase of $142, or 1.4 per cent, as compared with 1915. BULLETINS OF THE BUREAU OF RAILWAY ECONOMICS MISCELLANEOUS PUBLICATIONS (Continued from Page 2 of Cover) Consecutive Miscellaneous Number. Series Number. 21. 7 45. 14 62. 16 73. 18 75. 19 83. 21. 88. 92. 22. 23. 94. 24. 100. 25. 103. 26. 105. 27. 107. 28. 114. 29. 120. 30. 128. 31. 136. 32. 140. 33. The Cost of Transportation on the Erie Canal and by Eail. Railways and Agriculture, 1900-1910. List of Publications Pertaining to Government Ownership. The Arguments for and Against Train-Crew Legrislation. Statistics of Railways, 1903-1913, United States. Comparative Railway Statistics, United States and For- eign Countries, 1912. Summary of Railway Returns for the Fiscal Year Ending June 30, 1915. Arguments for and Against Limitatioa of Length of Freight Trains. Railway Stockholders, June 30, 1915. Comparative Railway Statistics, United States and For- eign Countries, 1913. Statistics of Railways, 1905-1915, United States. Summary of Railway Returns for the Fiscal Year Ending June 30, 1916. Railway Trainmen's Earnings, 1916. Summary of Railway Returns, Year Ending December 31, 1916. Statistics of Railways, 1906-1916, United States. Summary of Railway Returns, Year Ending December 31, 1917. Railway Earnings in 1918. Railway Stockholders, December 31, 1917. The following issues are out of print and no copies are available: Consecutive Miscellaneous Consecutive Miscellaneous Number. Series Number. Number. Series Number 4. 1. 28. 10. 6. 2. 31. 11. 11. 3. 34. 12. 15. 4. 39. 13. 17. 5. 53. 15. 18. 6. 66. 17. 23. 8. 81. 20. 24. 9. SAVE KuaniKossnups UtUED Kir TUK UNITED STATES OOVERK MEKT .SERVE. PAM PHLET BINDER ' Syracuse, N. Y, ^^ Slockton, Calif