Excerpt from Fiftieth Annual Report of the Railroad Commissioners of the State of New Hampshire, 1894

It is yet to be demonstrated that the application of electricity necessarily increases the dividend-earning power of a street rail road. It invariably adds to the gross receipts, but it involves such outlays for construction, equipment, and operation, that only in rare instances has it enlarged the percentage of profit. Comparison instituted by the Massachusetts commission Shows that since 1888, in which year all the street roads in that state were operated by horse power, the net earnings per passenger have increased 62 per cent., the net earnings per car mile, 73 per cent., the net earnings per mile of road, 57 per cent., the cost per mile of road, 60 per cent., and the capitalization per mile, 65 per cent.

During the last five years these roads have paid to the stock holders an average of per cent., which is a little less than one per cent. More than was paid for five years, prior to 1888, but in order to do this, an average surplus of 12 per cent. Which was maintained before the introduction of electricity, has been drawn upon until it has nearly disappeared.

There is reason, too, for believing that the apparent profits have been more matters of book-keeping than of real balances, having been obtained by leaving out of account depreciation of the plant and wear of machinery.

As the first electric roads are but six years old, their tracks, equipment, and power plants are all new, and outlays for repairs and renewals have been very small, but during the next decade most of these will have to be replaced at great expense, which if it is charged to operating expenses, will wipe out a large share of the percentage of net earnings shown in the past, unless business is rapidly increased or the cost of power is greatly reduced.

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