Savannah morning news. [volume] (Savannah) 1868-1887, 1885-11-27


Interest 90 certificates
Of Indebtedness .----. Zlo.JaJ 90
Blinking funds. .-......-. ll'.VUD 20
Dividends -.......--.. 81 ,945 90
Total paid out On &C
count u fixed charg-
cs ana DIVIDENDS ........ 81, 1859 80
Deficit Neutrality-suspicious.. S7z,25s y
The report gives a complete resume OF
the operations OF the company during the
year. The following extracts will show
what was accomplished:
Notwithstanding the reduction OF the
dividend to per cent. on the capital
stock, the earnings from the road, to-
gether with the income Of outside prop
erty, have not been sufficient 70 meet it
after providing for the usual fixed charges,
and the statement above shows a deficit
on the years operations Of So, 266 T.
1.-The policy sought to be carried out by
the board. was to distribute, as dividends,
only such earnings as renamed net, after
proper maintenance Of the property and
TIE payment or fixed charges; but. mas
much as our fiscal year closes on the 3lst
Of August, and der our bylaws what
ever dividends are paid must be declared
In December and June. the latter decla-
ration occurs when earnings Of the three
LAST months Of the fiscal year are unde-
termiued, and which cannot always be
f0reiald with accuracy.
tine effort was MADE. and it was ex-
pected 10 operate, the road this year with
no greater expense than the year prevl-
Gus. Notwithstanding the large reductions
effected then 70 compensate for the de-
creasing earnings Of that year. This
would have been approximately accom-
plished. bat for the occurrence OF three
cotton fires during the season-one each
a Eufaula, GAINESVILLE and Savannah
and the unexpected elimination this year
OF a large number OF claims for personal
injury, many Of which originated in pre-
Vious years.
REVENUES AND EXPENSES.
''For several years it has been the Gus
tom 10 present a statement in the report
or the General Superintendent showing
the amounts expended tor what is COM
monty regarded as extraordinary eX-
penses-that is, betterments or additions
made TO meet immediate necessities. but
which also result in securing benefits for
future years by contributing TO the ulti-
mate economy or operating. The expend-
itures upon these accounts for the past
year have been 1864, 1913. The expend-
ftuTe for the year previous was ~ 800,
while the annual average OF four previous
years mas been S429,341.
"The Columbus and Western railway
has suffered a decrease in its gross earn
ings this year Of - 672 So, and an increase
in expenses Of $5,2l7 %, maging a falling
on Ia its net revenue of SS,0S9 70.
The Montgomery and Eufaula railway
has practically maintained its gross earn
q H.ak Il. a.
expenses SjO,SOl IA. yielding a net in
crease OF $50, 49l OF. 1t Will be remem-
bered that this road was subjected to
some heavy extraordinary expenses the
preceding year. from which II was re-
lieyed during this. and this explains what
would otherwise seem TO be an unreason-
able huctuatiOn in its expense account.
''The Eufaula and Clayton railway has
yielded a net revenue OF 81. 23S %, which
Is substantially the same as the year pre-
TiOus, and about the same as several years
past. This road, p miles, is capitalized
at 100000, which is considerably below
its value, yet the Railroad Commission of
Alabama consider . per cent on this re-
duced capitalization too much, and under
an application from those who use the
road, have recently made a reduction in
the freight and passenger tariff Of 20 per
cent.
''The Ocean Steamship company has
yielded less net revenue than the year
previous.
'The Georgia Railroad, although show
ing, as usual, constant increase OF ton
mage, the rates at which il has been
forced 20 work have caused decline in
its revenue. Al the close OF its last fiscal
year, March 81, 1885. its receipts, together
with that from the extensive outside pro-
perry. included in the lease, has fallen
81, 4S7 IS short OF meeting It's rental.
"Summing up the results from the opera.
tions OF this property, from the date OF the
lease, April l., 1881, the net income over
operating expenses has fallen short OF
meeting the rental $1S0,025 -, yet the
balance due those interested In the lease
amounts 20 S4J5, 500 50. because OF the fact
that all Of the earnings were not paid
over 10 the lessees. but part used for ex-
tending the road into Athens, and aiding
tee completion OF the Gainesville, Jefler-
son and Southern railroad, both OF which
enterprises were regarded as prudent
business measure; the first TO increase
the earnings Of the road into Athens, by
Improving facilities for the business, and
the other az a feeder tor The contribution
OF new business from developing section
Of country.
"lf TIE policy the State has heretofore
pursued be relaxed TO permit those who
control this property TO earn legal inter.
est on the very low valuation which
formed the basis Of the lease price. 10 will
an time recover its dedcitsl and, looking
70 this ~ an ultimate result reasonable
70 expect, our portion Of TIE advances for
the deficit Is still carried on our books !
q solvent debt. How far these expecta-
lions may be realized rests with the State
and entirely beyond the control OF the
management Of its owners.
"Ihe Western railroad Of Alabama has
made a slight Increase upon It's gross