Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1880-03-17
SOUTHERN RAILWAY NEWS.

SOUTHERN RAILWAY NEWS
The system of railroads under the
Louisville and Nashville company's
control is now complete, and no con-
solidation or amalgamation with other
companies is contemplated. The pres
ent net earnings Of the Louisville and
Nashville company are equal to six
teen per cent on the present capital of
$9,052, $50, without taking into account
its new acquisitions. The main line Of
the road is now laid with steel rails,
and about thirty-fve per cent Of tho
branches is steel railed-all being rock
ballasted. The recently acquired con
troll Of the Mobile and Montgomery
road was at bargain on which the
company has been offered a profit Of
81 100000 in cash. The company Sc
cured control of the Pensacola and
the Mobile and New Orleans roads by
exchange Of bonds. The purchase in
each case was at prices at which the
two roads are no burden to the Louis.
vile and Nashville, The Nashville
and Chattanooga company will be con-
solidated with the Louisville and
Nashville, but is to be managed as are
ether independent lines owned by the
Louisville and Nashville, 1t is un-
derstood that Ex-Governor James D.
Porter, now on visit to this city, has
been rendered and will accept the
presidency Of the road, in place'of II.
w. Cole who is about to resign. The
advantage of owning this and other
lines will be to stop rate cuts
and ruinous competition, also
to cause reduction of oper.
ating expenses. The foregoing infor-
nation has been furnished by the
managers Of the company in answer to
numerous inquiries. The New Orleans
and Mobile road it is pro
posed to sell under a fore
closure, a new company to be organ
ICED in the interest of the Louisville
and Nashville company. The re-
ceivcrs' certificates ofabout 81 100000
and first mortgage bonds of $4,000, 900,
are TO be exchanged for S5,000,0OO
six per cent first mortgage bonds Of
the Louisville and Nashville compa-
ny, the whole secured by mortgage
on the New Orleans and Mobile. 1t
is said that two-thirds Of the bonds to
be converted have already been sold
to Louisville and Nashville parties
4 decree OF sale Of the New Orleans
and Mobile was rendered by Judge
Woods at New Orleans two weeks ago.
The Louisville and Nashville railway
company, after period Of financial
depression, began to increase its mon
etary strength in 1876, and during its
fiscal year closing June 80, 1877, had
paida dividend Of one and onc-half per
cent on its capital stock OF $9,052,950
The following year dividend Of
three per cent was paid,
and since then the earnings
have steadily increased, each year
showing additions to the dividends
declared. Last June the annual
statement reported the roads assets
at $31 ,486 ,51S, and of this S24,865,6l7
was the cost Of the line, while SC, ,6O2,-
S7l was miscellaneous, including cash
and railway bonds on hand, profit and
loss, etc. OF the roads liabilities,
$l7 ,396,770 was set down as its bonded
debt, and S9,O52,950 as the capital
stock Of the company. Tho gross
earnings Of the Memphis and Paducah
railway, from January 1st to the close
of the third week in February, were
$32,0S0, an increase Of $6,6l5 over the
same period last year. The St. Louis
and Iron Mountain railways
earnings, from January 1st to March
lst, aggregated 81, O4S, ,483, an increase
over last year of $375,24S. The Little
Rock and Fort Smith road earned
during the same period $8S, ,447, an in
crease of$39,S50 over the same time
last year. The Louisville and Nash
ville's earnings were S1,224,3O0, an
increase over the same time last year
of S343,325. The total earnings of
forty-three railroads, as printed in
last weeks issue Of the New York
Financial Chronicle, to the first Of the
presenl month, foots up S27, ,9l5,3Sl,
an increase over last year during the
same period o. S5,7S6,070. This large
increase of earnings has seldom or
never been oqualed in corresponding
Deriod nf time