CORNELL UNIVERSITY LIBRARY /^^•^ •'' ,1 I'' .f^.^'-' ""^ -rSif'S 11103 'UO|l|304S BDREAD (MP R^WAY Bstablistied by RailwAy$ of the United States !_ for the ^i^tlf 16 Stju'dy 6i Tf aJ^poirtation Prpblemis 's'$» ^ ¥1 J($l^ay StoickMdeFS ^«4 ' Hisc^llaDie0HS Seriies Nov 24 ' •^, V^ me ; BuitEiiU OF i^AlBj^AY ECOITO9IIC8 ItlbNltMit' 31Qpl|udntbs : ■ iWtiijjet.', ■;^.' './i^erjes- ' ■r. Month'oIV- '^'•:''','5^-; ' , April; 4^jS; ■ '"'A-;.. '■ ; ■ ^-ea- ', JuH, ,13i5,r-lns '-80.V- ;-; '-"^r.' jert WltJEi Bulletta-^pei'atljig Re- ' ' ■' (' '1 - (','■"" , turns: TMsoal Yeats, mmsi June 30.' 19114 and '■- ^''^''i' ■ , ■ f , ' -h*?%^>-' ; :'mht&is. '' :''i^^S^X'r '. V: ;63.. ;';/''' '■•A|ig;u3t,:l9i5.v., ''^'^m:{ ;'• .■ ■ -^> ' -. " Sfi)Ptteinbe5,1915. '^\M^" '\ :\ -'Sb;- :- °-^fctoij^,'iai5^;^. ■ ■,'"xr . ' ''•s&,..- Nditelnljer, ^JR ./vSffl. :;,, ' , , ^'M .;■;: ;ite^|Ber,,1915^: ^" ^^B:/ ' ' ■' ■ 68,,;, ,, ' , 3;anti?.ry,;i9l6. :■ ;««/'.„ -' ;,.m'v ■ Febrttaryi 1916. /■ : '■■m.-h .*^&|84^i:i9i&;^ ' ^■'■:y''--' issues )^e:'Ojit pf 'f'^l--- ' qonaeciittve ,;/,.|i^oiiy jKeeort ■',-,, -;'■ ; '■:! -' ' -,.' . ■ y ' Nuiaber,. \':( \^^^^9', ' ; ;».;^|t'\ ■ ,',peeei]abft;'l^i|)^, , '■/•18. . -l^vift^:,. 'ivtaK^isil.'"' '''■ 10. ■ , ■ /JS^;,."'- ii;uiie,'l&ll. :";''' 22,-"'.' \ :-i5;„''- .;Aiigi<^;9lL ;''-■;, •:-3li'v .'■,37/''. ■;jui!^'isii'- ';-,:■. (<3(>httQtHed tx^Afeige 3 of covsr.k- Railway Stockholders June 30, 1915 Bureau of Railvay Economics Washinston, D. C. June, 1916 H E aa34 8 9^ I O^lG 3 RAILWAY STOCKHOLDERS: JUNE 30, 1915. Introductory. The statistics presented in this bulletin for 191 5 cover the returns of 1,285 railway companies to the Interstate Commerce Commis- sion. These corporations include both railway companies that file operating reports with the Commission and their non-operating sub- sidiaries." The aggregate operated mileage of these 1,285 railway companies on June 30, 1915, was 257,211 miles. The total num- ber of their stockholders on that date was 626,122.^ Under the statistical and accounting regulations of the Interstate Commerce Commission, operating roads comprise three distinct classes. Roads of Class I are those having annual operating reve- nues above $1,000,000 each; roads of Class II, those with annual operating revenues, of from $100,000 to $1,000,000; roads of Class III, those with annual operating revenues below $100,000. The mileage operated on June .30, 191 5, by these three classes of roads was respectively as follows : ,1 Class 1 228,679 Class II 19,716 Class III 8,816 Total 257,21 1 The non-operating subsidiaries did not, of course, report any operated mileage. Their owned mileage, which is operated under lease or other agreement by the operating roads, amounted on " Switching and terminal companies are omitted ; also a few small roads or roads in receivers' hands for which the desired information regarding stock- holders is not reported to the Commission. ' ' b The statistics of the present bulletin are not strictly comparable with an earlier compilation of the Bureau of Railway Economics showing railway stockholders on June 30, 1914. The methods pi classifying and reporting rail- way stock changed considerably, beginning with the fiscal year 191S, at the in- stance of the Interstate Commerce Commission, and the statistics of the years 1914 and 191S are not on an exactly comparable basis. It is expected in future issues of this bulletin to compare the results of the year 19 15 with those of each later year as completed. ' (3) 4 June 30, 1915, to 38,446 miles. This owned mileage is included in the aggregates of operated mileage just shown. Under Interstate Commerce Commission practice, the United States is divided into three territorial districts— Eastern, Southern, and Western. This territorial arrangement is followed in the pres- ent bulletin. The Eastern District comprises the region extending from the Atlantic seaboard north of the Potomac and Ohio rivers to a western boundary constituted of Lake Michigan, a hne drawn from Chicago through Peoria to St. Louis, and the Mississippi River from St. Louis to Cairo. The Southern District lies east of the Mississippi and south of the Ohio and Potomac rivers. The West- ern District comprises the region extending west from Lake Michi- gan, a line drawn from Chicago through Peoria to St. Louis, and the Mississippi River from St. Louis to the Gulf. A road lying in more than one district is assigned to that district in which lies the larger portion of its mileage, or with which it seems most closely allied in character of business. The statistics upon which the tables in this bulletin are based are taken from the annual reports on file with the Commission. They show the total number of stockholders of record at the last closing of the stock books on or prior to June 30, 1915. If the stock books have not been closed within a year, the stockholders as of the close of the year are returned." Therefore, while the returns for 191 5 do not in all cases refer strictly to the status of the stock books as of the last day of the fiscal year, June 30, yet they are commonly re- ferred to as being the facts on that date, and are so accepted for the purposes of this. tabulation. Number of Stockholders, June 30, 1Q15. Table I gives the number of roads included, mileage operated, and total number of stockholders on June 30, 191 5. The information is shown according to district, and also for operating and non-operating roads of the three classes already described. Non-operating sub- sidiary roads are respectively assigned to the class to which their " In the case of half a dozen small roads the information for 1914 was the latest available. Inasmuch as there had been little or no change in the owner- ship of these roads, it seemed safe to assume that the returns for June 30 1914, were equally applicable to June 30, 1915. The returns for 1914 were therefore used in the present tabulations. operating roads belong. Thus a non-operating road of Class I is so designated because it is subsidiary to an operating road of Class I ; similarly, non-operating roads of Class II and Class III are respect- ively subsidiary to operating roads of the two corresponding classes. It should be borne in mind that the aggregate number of stock- holders reported to the Commission by all roads is the number of distinct holdings of stock and does not necessarily represent the num- ber of separate individual holders or persons. The same individual may and often does hold stock in more than one railway. If he is a stockholder in three railways, he is so reported by each of the three railways and is counted three times in making up the aggregate. In consequence, the number of individual railway stockholders is smaller than the totals here shown. To ascertain how much smaller would require the investigation of the stock books of each individual railway and the expenditure of an enormous amount of time and effort. 6 TABLE I. Number of Stockholders : Railways of the United States, June 30, 1915. District and Class. Number of roads. Miles of line operated . Number of stockholders. United States: Operating roads ; Class I Class II Class III Total operating roads Non-operating subsidiaries ; Class I Class II Class III .•■■•;•■ Total non-operating subsidiaries. Total United States Eastern District: Operating roads; Class I Class II Class III Total operating roads Non-operating subsidiaries : Class I Class II Class III , Total non-operating subsidiaries. Total Eastern District Southern District: Operating roads ; Class I Class II Class III ;;. Total operating roads Non-operating subsidiaries : Class I Class II; Class III .■; Total non-operating subsidiaries. Total Southern District Western District: Operating roads ; Class I Class II Class III ;. Total operating roads Non-operating subsidiaries : Class I Class II Class III ; Total non-operating subsidiaries. Total Western District 170 267 405 842 410 16 17 443 1,28s 68 88 102 2g8 280 6 10 296 SS4 33 59 127 219 SI 3 5 S9 278 69 120 176 36s 79 7 2 88 453 228,679 19,716 8,816 257,211 257,211 58,921 4,420 1,780 6s, 121 6s, 121 41,880 4,890 2,768 49,538 49,538 127,878 10,406 4,268 142,552 142,552 511,187 10,604 17,327 539,118 86,347 180 477 87,004 626,122 244,288 4,739 4,051 253,078 79,005 74 269 79,348 332,426 48,106 2,767 1,959 52,832 4,644 34 196 4,874 57,706 218,793 3,098 11,317 233,208 2,698 72 12 2,782 235,990 It will be noted that the total number of stockholders on June 30, 1915, was 626,122, covering 1,285 railway companies, with an op- erated mileage -of 257,211 miles. The 842 operating roads were owned by 539,118 stockholders* while the 443 non-operating roads were owned by 87,004 stockholders. This represents an average of 640 stockholders per railway for operating roads, 196 for non- operating roads, and 487 for all roads. Of the total number of stockholders, 332,426, or 53.1 per cent, were stockholders in the Eastern railways; 57,706, or 9.2 per cent, were stockholders in the Southern railways ; while 235,990, or 37.7 per cent, were stockholders in the Western railways. This indicates nothing as to the residence distribution of the stockholders. Stock- holders of Eastern railways may live in the South, the West, or abroad, and similar divergence between residence and ownership may prevail in the South and the West. Holdings per Stockholder, June jo, ipiS- Table II gives the par value of capital stock outstanding, total number of stockholders, and average amount of stock held per stock- holder on June 30, 191 5, by districts and by classes. 8 TABLE II. AvBRACE Holdings per Stockholder: Railways of the United States, June 30, 1915- District and C^ass. Capital stock outstanding. Far value. Number of stock' holders. Average ■ amount ot stock per stockholder. Par value. United States : Operating roads; Class I Class II Class III Total operating roads Non-operating subsidiaries ; Class I Class II Class III Total non-operating subsid- iaries Total United States Eastern District: Operating roads ; Class I Class II Class III Total operating roads Non-operating subsidiaries ; Class I Class II Class III Total non-operating subsid- iaries Total Eastern District. . Southern District : Operating roads; Class I Class II Class III Total operating roads Non-operating subsidiaries ; Class I Class II Class III Total non-operating subsid- iaries Total Southern District. Western District: Operating roads; Class I Class II Class III Total operating roads Non-operating subsidiaries ; Class I Class II Class III Total non-operating subsid- sidaries Total Western District. $6,829,820,715 372,702,236 111,561,782 7,314,084,733 1,318,591,424 3,338,600 2,272,13s 1,324,202,159 8,638,286,892 $2,489,976,817 129,089,286 26,899,788 2,645,965,891 746,769,047 1,149,000 1,078,250 748,996,297 3,394.962,188 $974,391,461 75.357,750 31,375.314 1,081,124,525 71.503.725 247,000 687,885 72,438,610 I. 153.563. 135 $3,365,452,437 168,255,200 53,286,680 3,586,994,317 500,318,652 1,942,600 506,000 502,767,252 4,089,761,569 SI I. 187 10,604 17.327 539, 118 86,347 180 4^7 87,004 626,122 244,288 4,739 4.051 253,078 79,005 74 269 79,348 332,426 48,106 2,767 1,959 52,832 4,644 34 196 4,874 57,706 218,793 3.098 II. 317 233,208 2,698 72 12 2,782 235.990 $13,361 35.147 6,439 13,567 15,271 18,548 4.763 15,220 13,796 $10,193 27,240 6,640 10,455 9,452 15,527 4,008 9.439 10,213 $20,255 27,234 16,016 20,463 15.397 7,265 3,510 14,862 19,990 $15,382 54. 311 4.709 IS. 381 185,441 26,981 42,167 180 , 722 17.330 None of the averages in this tabulation showing amount of stock per holder take account of the fact that the same individual is some- times a stockholder in more than one railway. This point has al- ready been discussed on page 5. It is clear that if there are dupli- cations in the number of stockholders, the average holdings per per- son must be larger than those of the present table covering average holdings per stockholder. The average holding per stockholder, p3r value, was $13,796 on June 30, 191 5, for the United States as a whole. In the East the average was $10,213; in the South it was $19,990; in the West it was $17,330. In all three districts the average holdings for operating railways of Class II were larger than the averages for roads of Class I. In the East the average for Class II was nearly three times as large ; in the West, between three and four times as large. These compara- tively high averages are due throughout to the relatively small num- ber of stockholders per railway, and this in turn resulted from the fact that a large proportion of railways of Class II are controlled by other railways, usually roads of Class I. Where a road is so con- trolled, the number of stockholders on its books is seldom greater than the number of directors (each of whom holds one qualifying share of stock) plus one (the controlling railway). The same situation exists among operating railways of Class III, a large proportion of which are controlled by other railways. How- ever, these roads have a smaller average amount of stock outstanding than operating roads of Class II, and the average holdings are there- fore much smaller. Non-operating subsidiaries are also to a large extent owned or controlled by other railways, which results in a comparatively small number of stockholders on the average. As these subsidiaries are usually small roads, the average holding per stockholder is, for the most part, not large. The only exception to this rule is found in subsidiary roads of Class I in t"he Western District. The 79 roads in this group show an average holding per stockholder of $185,441. This average, which is out of all proportion to the other groups, is entirely due to the inclusion of several lessor railways with large capital stock, whose ownership vests in each case in a single con- trolling railway. Thus the Carolina, Arizona & Santa Fe Railway, with capital stock of $50,000,000, is controlled by the Atchison, 10 Topeka & Santa Fe Railway, which owns $49,999,500 of the stock, the remaining $500 being distributed among the five directors. Sim- ilarly, the Central Pacific Railway, with $84,675,500 of stock, is con- trolled by the Southern Pacific Company, which owns $84,674,600 of the stock, or all but the directors' qualifying shares. Again, the Mason City & Fort Dodge Railroad, with $32,841,152 of stock, is controlled by the Chicago Great Western Railroad, which owns $32,840,600; while the Scfuthern Pacific Railroad, with $160,000,000 of stock, is controlled by the Southerfi Pacific Company, which owns or controls $159,998,900. Clearly, a series of averages that include large holdings of railway stock by other railways do not satisfactorily portray the general dis- tribution of railway capital stock. To ascertain how widely railway stock is distributed, and in what amounts, among the general public, it is necessary to eliminate, as far as possible, the holdings of such stock by the railways themselves. A partial elimination is attempted in the next section — the only elimination that is practicable without detailed investigation of the stock books of every railway in the United States. * Railway Stock in the Hands of the Public. Beginning with the fiscal year 191 5, the Interstate Commerce Com- mission has required every operating railway of Class I and Class II (but not Class III) and every non-operating railway to report the names and holdings of its twenty largest stockholders. This has now made it possible to attempt a separation of stockholdings in the hands of railway corporations from those in the hands of individuals and to present an average of holdings per stockholder that will cor- respond roughly with the popular conception of that average. So far as railway companies, or individual or trust companies holding for the benefit of railway companies, are sufficiently large stockholders in other railways to b*e included among the twenty largest stockholders, it now becomes possible to separate such stock- holders and their holdings from, the aggregates of stockholders and of capital stock, and thus to arrive at a figure which will represent only individual stockholders and their holdings. In this way may be ascertained the approximate number of stockholders who are not railway corporations, together with the total amount of their hold- II ings — that is, stock in the hands of the public. This is done in Table III. However, the net figure resulting from such a process of separa- tion only approximates accuracy, for the data available for complete analysis and classification are unfortunately lacking. In the first place, operating railways of Class III are not represented in Table III, because, as already stated, they are not required to make returns of their twenty largest stockholders ; in the second place, the list of railway corporations that are stockholders in other railways is not complete, nor is the total amount of their holdings ascertainable, because some railways which are holders of the stock of other rail- ways do not hold a sufficient amount to appear among the twenty largest stockholders. However, it is probable that the greater part of the railway holdings is represented in the elimination that has been carried out in Table III. 12 TABLE Railway Stock in the Hands (Railways of Class I and Class IT, with District and Class. Number of stock- holders. Total stock out- standing June 30, 1915- Par value. Average amount per stock- holder. Par value. United States : Operating roads; Class I Class 11 Total ■. Non-operating subsidiaries ; Class I Class II ; Total United States — Class I and II Eastern District: Operating roads; Class I Class II Total Non-operating subsidiaries ; Class I Class II Total Eastern District — Class I and II Southern District: Operating roads; Class I Class II Total Non-operating subsidiaries ; Class I Class II Total Southern District — Class I and II Western District: Operating roads; Class I Class II Total Non-operating subsidiaries ; Class I Class II Total Western District— Class I and II 511,187 10,604 521,791 86,347 180 86,527 608,318 244,288 4,739 249,027 79,005 74 79,079 328,106 48,106 2,767 50,873 4,644 34 4,678 55,551 218,793 3,098 221,891 2,698 72 2,770 224,661 $6,829,820,715 372,702,236 7,202,522,951 1,318,591,424 3,338,600 1,321,930,024 8,524,452,975 $2,489,976,817 129,089,286 2,619,066,103 746,769,047 1,149,000 747,918,047 3,366,984,150 $974,391,461 75,357,750 1,049,749,211 71,503,725 247,000 71,750,725 1,121,499,936 $3,365,452,437 168,255,200 3,533,707,637 500,318,652 1,942,600 502,261,252 4,035,968,889 $13,361 35,147 13,803 15,271 18,548 15,278 14,013 $10,193 27,240 10,517 9,452 15.527 9,458 10,262 $20,255 27,234 20,635 15,397 7,26s 15,338 20,189 $15,382 54,311 15,925 185,441 26,981 181,322 17,965 13 III. OP THE Public, June 30, 1915. annual operating revenues above $100,000.) Held by or for railways. In the hands of the public. (Approximate.) Number of railway holders. Amount of stock held. Par value. Number of stockholders. Amount of stock held. Par value. Average amount per stockholder. Par value. IS3 296 $1,541,786,058 108,228,580 1,650,014,638 511,034 10,461 521,495 $5,288,034,657 264,473,656 5,552,508,313 $10,348 25,282 10,647 383 9 392 868,985,575 956,600 869,942,175 85,964 171 86,135 449,605,849 2,382,000 451,987,849 5,230 13,930 5,247 688 2,519,956,813 607,630 6,004,496,162 9,882 70 69 139 $606,707,850 51,494,475 658,202,325 244,218 4,670 248,888 $1,883,268,967 77,594,811 1,960,863,778 $7,711 16,616 7,878 266 4 270 362,496,650 744,200 363,240,850 78,739 70 78,809 384,272,397 404,800 384,677,197 4,880 4,881 409 1,021,443,175 327,697 2,345,540,975 7,158 29 24 53 $188,817,400 8,355,500 197,172,900 48,077 2,743 59,820 $785,574,061 67,002,250 852,576,311 $16,340 24,427 16,776 40 I 41 40,981,075 9,500 40,990,575 4,604 4,637 30,522,650 237,500 30,760,150 6,630 7,197 6,634 94 238,163,475 55,457 883, 336 ,-461 15,928 54 50 104 $746,260,808 48,378,605 794,639,413 218,739 3,048 221,787 $2,619,191,629 119,876,59s 2,739,068,224 $11,974 39,330 12,350 4 81 465,507,850 202,900 465,710,750 2,621 68 2,689 34,810,802 1,739,700 36,550,502 13,281 25,584 13,593 i8s 1,260,350,163 224,476 2,775,618,726 12,365 14 The total number of stockholders of roads of Classes I and ll and their non-operating subsidiaries on June 30, 191 5, was 608,318, while the total amount of outstanding stock of these roads was $8,524,452,975. It will be recalled that these aggregates exclude the returns of operating and non-operating roads of Class III, and there- fore are not fully comparable with the aggregates for 191 5 presented in Tables I and II. The average holding per stockholder, including railway corporations as stockholders, was $14,013. Deducting the 688 railways by or for whom the stock of other railways was held, and the $2,519,956,813 of stock so held, there re- mains a total of $6,004,496,162 of capital stock in the hands of 607,630 stockholders, who comprise what may be termed the general public." This represents an average holding per stockholder for the United States as a whole of $9,882. The average was $7,158 in the East, $15,928 in the South, and $12,365 in the West. These aver- ages are considerably smaller than those of Table II, where gross holdings are shown without deduction for stock in the hands of the railways themselves. This is particularly true of non-operating sub- sidiaries of Class I in the Western District, where the abnormally high average of $185,441, shown in Table II, becomes $13,281 after large railway holdings have been eliminated. a Including railways with comparatively small holdings of railway stock and, of course, any corporations or associations other than railways. BT7LLETIN& OF tHE BtJtKE^XT; OF RAILWAY i:c;PN0MIGiEI C6Msc)jtlve ^ S^tecellaBeous Series Niimlie'r. '■■■<' 4.' '■/■''■>' 21. . 1 '■ ' \7. ■ ^ 34. 12. I (iOwitittued from p$.^e: 2 of coven) A vjoiia»a,ran;ye statement ot Fflj^cal Ya,lu^$lcui;^d / GaiH^Uzation. :,':,-, ■ ..■■'.'^ / ^'' ''' '■ -\''''\ ' r' TlieCoat of Trtms^rtatW on the ftrle CaiiSl aiid by " ^'.ftatl.v':;, ;■'';_ ;v',- '';,'■ •'/ \ ■. S,-,;: ,,. ' ' ',■■*'■,./ -;.■; A;Cjoinjparattf e: Stfldir pf BaiM y .fo^f ^It^'to .the%jated^|sii<^;'^^^ ^ ,ana7thiB_BtJfl^lidl <|pnmW^ 39. 13. Goij^i^&risonfkpav^jl^l/V&ip^^-^^ 45.' 14. ; J^ailways and A^tfditiire,. labp-Ml^. , , i 62. 16. vl'lst of I^WlcatioMjPeiiitaWing.b^^^ 73. is. The ArgumtesBts Eor and AgaW* Tfato-OrW li^if ■■'';■ ■■-■•'-liafOon., ;/*'' ■,',' '""-'' '^'vc',' •■ •;'':':.<.'-:•■''■'; 81. 20. Statisdcs 6f R^«^ays/1904-1914%n^tea Staies.' ; 83. ' 2J. bopiparatiye Ba|lwa^\SJ^t^ti^^^ -88.; '^." 'i Somtaaw/of''''RalI'ssr&y";;',Re1ni 92. 23^ Ailments For kM- Agftinst I^iipitatidii of the liengtH r' ■ of ;-ffr^tsht,;TraiBts'. " ' ■ ',, ,' ■'■ .- ,.,'■' . ■ ': ,' C'-' ;.""'" 9t' ' 24. r iRsHlwy- Stoiij&bCifd^S: Junp 30j ISlp^'. ;;j^r;-'", _-,.»" *,,-,' ,•::'. v^. ., , ■ ^. 'fc:;,; *f l&e foll&wtog. Mfilp^psajei^jii P^ Out of P?±at '''^0i^&a ''©oplw.caiibe OT^plied: ' -'fi '';'■■.■;,<.-'''-';'■ '';,^ ,\ '. ; _^ ■',>' ;'-;?-,''^; bo^secatlTe fMIscellaneois . ' '.: Consecutive Ifl^c^lfaneo'uB * , '' Nnrntec . Series Nrimtjer.; , ',: ,!)Siiinibep. ' Serlea Nnpjber. '; ;:^..vi .,:■■■ ' ■'; 2. -i. ■ - :'K:'\^^l;\ '■ :.: , J9.;V :■, ;''' :i7i^ /.-'r' ' ■"\>'*\:f^'^'""'7 ;, ' ' 53. , 15., ■' -l^'V , "'^'ft ' ^^ ,- "''\'^-'/', ' :'■ ,'.17. , :-:'23' ,. '8. ' ■■■.-_ ;^75:'- ■, ; • ' - .19.-',.-- ! ,.^' -^'^Jj';