that of San Francisco; and the latter city recently offered a reward of $3,000,000 for the first railway running a train East in competition with the Central Pacific. This certainly offers some inducement, although it is but $4,000 a mile for a very expensive road. In course of time most Denver roads may extend towards the Pacific coast, especially if recent official reports to the effect that the greater part of the American desert,' through which all these roads have to run, is adaptable to agriculture if an efficient system of irrigation be provided, deserve credence. Apart from this, Utah is a very promising State, and Salt Lake City a city with a great future; and thus the great waste West of the Rockies may in due course be as well provided with railroads as Nebraska is now.

Since the reorganisation some more bonds have been issued, and in consequence the funded debt and share capital are now as follows:

1.

Common stock ($45,000,000 authorised)...

2. * Preferred 5p.c. non.-cum. ($28,000,000 authorised). First mortgage sinking fund, 7 p.c. gold..

3.

4.

Consolidated mortgage ($42,000,000 authorised 4p.c. gold).

5. * Improvement mortgage ($5,000 per mile) 5 p.c. gold..... Total capitalisation, June 30, 1892..

Interest on bonds..

* = Quoted in London.

$38,000,000

23,650,000

6,382,500

28,435,000

8,050,000

.$104,517,500 1,944,805

1. The common stock has as yet received no dividend. 2. The preferred stock received in 1887 22, in 1888 4, in 1886 nil, in 1890 2%, in 1891 2% p.c. The August dividend of 1891 was passed; at the time the English Press generally ascribed this surprise to dishonest motives, but it appeared later that it had not been earned, and the surplus of previous years, not being represented by cash, was not available.

3. The sinking fund bonds are all due in 1900, and will be replaced by consolidated mortgage bonds reserved for the purpose.

4. Of the consolidated mortgage $6,382,500 are reserved to retire the sinking fund bonds when due, and $6,900,000 to acquire the Rio Grande Western or to build a new line to Ogden. The remainder may be issued to pay for new lines at the rate of $20,000 per mile. This mortgage covers the entire property, but of course is subject to the first mortgage.

5. The improvement bonds were issued at the rate of $5,000 a mile to provide funds for improvements, and rank after the two other descriptions.

The company's earnings for a series of years were as

Statement of Tons and Passengers Carried One Mile and Earnings

per Ton and Passenger per Mile, 1872 to 1892, Inclusive.

For the years 1878 to 1880, inclusive, the accounts were not preserved.

Earnings and Expenses for the three years ending June 30th, 1892.

Conducting transportation....

953,492.15 964,076.59 164,818.37 242,952.12 164,314.28 577,678.94 795,051.94 701,754.92 2,871,816.88 3,027,067.10 2,524,415.65

Contingent expen. (roadway and bridges). 150,334.51 167,544.62 146,702.65

General expenses..

Total expenses..

Percentage of earnings..

306,121.98 324,195.53 302,086.68

In 1891-92 gross revenue was almost exactly the same as in the preceding year, but owing to smaller operating expenditure, the proportion of which fell not less than 426 p.c., net earnings were larger, and the available revenue exceeded that of 1890-91 by $428,000, and amounted to $3,772,903. First First charges of all descriptions required $2,858,792, and consequently there was a surplus of $914,111, equal to well-nigh 4 p.c. on the preferred stock; no distribution was, however, announced. The balance sheet discloses a considerable decrease for the year in the floating debt, which may now be regarded as practically non-existent, being offset by current assets to all but its full amount. The president states in his report that :

"The working stock of materials and supplies was drawn down from $880,139.45 to $504,835.64 without impairing the efficient operation of your property. The current liabilities were reduced during the year from $3,968,097.46 to $2,719,422.35, and whilst on June 30th, 1891, your current liabilities exceeded by $329,635.59 your current assets, on June 30th, 1892, these assets were $443,933.61 in excess of your current liabilities, the improved condition in these items alone being $773,569.20. With prosperity in general business, and favorable conditions as to traffic and rates, it is believed that your current liabilities will be reduced to a normal amount soon after the close of 1892."

The dividend on the preferred stock was discontinued in 1891, when it was not earned, as the accounts disclose. The following distributions have been made on this stock: 1887, 2p.c.; 1888, 4 p.c., of which 11⁄2 p.c. was in scrip, subsequently redeemed in cash; 1889, nil; 1890, 24 p.c.; February, 1891, 2 p.c.; since nil.

THE RIO GRANDE WESTERN.

This road runs from Newcastle and Grand Junction in Colorado to Ogden in Utah, where it connects with the Central Pacific and Union Pacific systems. In Grand Junction the road, meets the D. and R. G. and Colorado Midland. From 1882 until 1886 it was leased to the former (see above) which is credited with the intention of resuming control, and works under close traffic agreement now. The company's capital consists of $10,000,000 common stock and $6,250,000 ($7,500,000 authorised) 5 p.c. non-cumulative preferred. The bonded debt comprises $14,000,000 4 p.c. gold mortgage bonds, issued in 1889 when the Denver and Rio Grande Western was reorganised. The preferred stock was increased in 1891 from $5,000,000, $1,250,000 being taken by the shareholders at 65, and the funds received thereby applied to the purchase of rolling stock and the improvement of terminal facilities. In 1892, common stock