Savannah morning news. [volume] (Savannah) 1868-1887, 1884-11-07

A. VIII be seen from tie foregoing state
Uents. the aggregate earnings from your
PROPER = have suffered s very lsr<e decrease
~ compared with the recel = OF the previous
EeaT. ana are less Enan might reasonably ue
assumed Is its average earning power The
chief cause o. ihis = the short yield Of cotton
ln Ih- sections tributary o your roads. AMI N
some extent 20 increased competition. But
OF TIE lines within the State Of Georgia tine
largest falllr : OF has occurred and this Is ID
p4rt due 20 reductions q rates effected
under The operation OF the state Commission
law. The reductions during the past year 10
cur revenue from this cause have been llgl-
a. com pared with the average reductions o.
previous years. since the establishment Of the
commission Yet these, coupled with the lo<
rates enforced upon the road previously. en-
tail up0n you an unfair proportion OF the loss
u profits. which must b DIrne by the busl-
ness interests II the country during periods o.
depressed trade.
ne frst reduction in rates By the Railroad
Commission was put into effect inst afler the
reaction 10 Business that followed the long
stsEuafi0n. brought about by the financial
Crisis Of 1873. The constant Increase IN the
l1slues> Of the country ear by year since
that time has heretofore compensated Tor the
annual reduction II rates tl7t has followed.
AID II many cases this growth q business
has been active enough 70 increase the earn
il-s OF some Of the roads. nOtW Tristan GlnE
ne fow rates ST which ther we're required 20
work. aud has QrO1Ecea tile impression upon
mary that the man2Eeme1t OF the railway
tr4fhc b. tie state has caused the improve
uent-
Il must be evident to al that the policy OF
establishing standard Of rate charges on the
basis OF meaEre returns 70 the capital invested
IL the transportation business o. the country
during periods OF prosperity, VIII be made
Quata 10 properly sustain the roads IN years
- light traffic. A-y prOtracted depression IN
bus ness VIII. under this policy. leave the
railway coupaLi-s OF the state choice be-
tween deprivinE the owners Of dividends. or
Withholding from the property expenditure
necessary 70 msintaln lts physical safety and
Contribute 70 needed facilities Il indeed.
II involves no greater calamity. Il
l. a policy that prevents the owners
Of railway property from sharing
with al the commercial world the fruits OF
prosperous trade, and thereby deprives them
~ the power OF accumulatIug reserves 10 pro-
vide against the hazards 10 which Tailway in
ves-ments are specially subjected.
Every possible effort has been made 70 Offset
the large falling OF in gross earnings by rigid
economy In every department Of the cOmpa-
uE's service even 70 the extent o. deferrlug
eIpe1d lures upon needed improvements. and
for the enlargement Of lis equipment. but not
vet 20 the extent Of permitting any ueterlor1-
ion Ia the physical condition Of any property
belonging 70 the company. To this policy.
and ihe successful operation Of your steam
ships. i mainly due whateveF good results
have been attained,
he gross earnings Of the Central and
southwestern Railroads have decreased, a.
compared with the year previous. S5I5.s64 g.
The expenses Tor the same time have de-
EFC1 CA e449.--a o. AAA= = A[L4C1eE IA AAfE
uet revenue Of S26o.654 As
Tie statement was made in the last annual
report that the combined earnings Of these
80 roads yielded only about ~ per cent. on
the capitSl stock Of both, after paying the
fixed charges. Applying the same com PzrisOn
- she revenues Of this season, the earnings
upon the combined capital stock Of these roads
have been less than - per cent.
By reference 70 the preceding table Of fixed
charles. il viii be seen that the earnings Of
vour road aud its leased lines IN Georgia, in
Hf-~ e-fT1slr
Weld OniT a Surplus OF SSS.Sl0 - after paying
rentals and other liked charges. equivalent 10
q Dividend upon lis capital stock Of about
/ lS-lo0 per cent.
Fan Information REGARDING the conduct Of
thu Business. the physical condition Of your
pr0pert and the details Of expenditures, may
be had from tle reI-9ft, q ne general super
intendent. and those OF other officers submit
tel through him. To these your attention Il
respectfully invited
gbe Columbus and Western Railway hzs
suffered less reduction II revenue than any Of
the roads iuciuieG In the preceding state
rleatS "a ira the exception Ct the Eufauls 2uG
clarion. This taken IN connection with is
ureTiou. 1nnu4t improvement III earnings
indicates q gradual Development Of the busi-
nes- Of that section; otherwise the loss on sc-
coumt OF the short cotton crop. which Ii shared
VITA the other roads. would have put upon *
q greater falling Of in revenue Its earnings
have decreased - 5. and expenses Slsl6s -
net increase Of Sl-ll3 %.
Tae Montgomery ami EufaulA Railway has
decreased n gross earnings S31-53s -, in
creased 10 expenses Sl57Q3 o3-net decrease [
over previous year $50 =. The fallingoG IN
gross earning : due 10 the hort Tleld Of cot [
Ton aud S diversion 70 the Pensacola route Of
much OF the business IL has heretofore enjoyed I
from tie Louisville and Nashville Railroad /
into Florida. The ordinary operating ex-
Ps3s tasn s sSS -3 reda 5ss am
the app sreuE increase L the result OF larger |
but necessary purchase Of steel rails. and a
considerable expense n p-oElninE the joint /
al m
the Western Railway Of Alabama az Mont |
gonery. completed last year. but large part |
u the payment fell IN the early part Of this I
The Eufaula and Clarion Railroad hss in
creased lis earnings $40 =. aud decreased its [
expenses 81. - p. Increase in net earnings /
The ocean Steamship Company's annual
--n7-t. published 4s al appendix. gives the |
dsTafls CT the conduct o. that property The /
result Of lis operation has been satisfactory.
a-f a. las- year, IL becomes the chief con-
rributor 10 the fund from hlch the dividends Z
upon vuur stock Is paid
me Georgia Railroad Tor rs Ilss.Al : ear end
ing Merch 81. lSsG. failed 20 earn lis rental By
S-772 -. This does not bear out the nope eX-
pressed in the last report. encouraged pE tne
increased earnings in the early part OF me
year The last port Of ifs fiscal year lncluue4
the whole Of the short crop cotton season anu
ia addition the road suffered considerable loss
Ia. the reduction OF lis rates by the Railroad
ne nef earnings Of the Western Railway Of
AIabsma. and ne Port Royal and Augusta
Railway. in south Carolina, have each been
Slightly increased over last year
The net earnings OF the Epson county Rail-
road have been s. So 20. which, added 20 the
balance Al is credit al the close OF the year
ureyl9us. Of S7l3 3, leaves balance 70 the
credit Of that company Of S5.2S5 $. This sum
has been allowed 10 sccumulate for the pur-
pose Of providing rails for needed renewals Of
portions Of lis track during the coming year. |
The floating debt OF your company az the /
date Of the last annual report was $4,000. II !
viii be seen BY the balance sheet published /
herewith that il Is now S937. JOS Is. This Is 1
Offset by the excess Of ..bills receivable held /
this year over last. amounting 70 so 80 g. /
aud b. the item new rails carried on our /
books as aa asset. amounting 20 Sis 1
69s O. The frst item represents money /
borrowed daring the financial troubles 1
Of last spring for tbs purpose Of 4
cooperating with the banks Of this city, 70 /
Afford a much neetied relief 70 our business /
mer. at a time when the sfrlnzency Of the i
moaeT market seemed 70 threaten serious 4
damage 10 the commerce OF the city, and Il
thereby 10 the business Of the rad These 4
loans went far % accomplish the desired pur-
No. and can now Be called IN time 70 meet /
our own maturing obligations, given % pro
vide means for making then-