Savannah morning news. [volume] (Savannah) 1868-1887, 1886-10-23

Denclt IN Georgia Is. X. to meet
rental. ......... ..,,.............. 44,el4 Sc
OBSERVATION-DISCLOSURES. Sl,9l8s42 %
Surplus, .....,...... Sl,l00 So
1884, 942 81
NET INCOME AND FIXED CHARGES.
The net income over operating expenses Of
the Savannah and Atlanta divisions, the
southwestern road, including bank and. in
vestments, was 81, 340 1876 IL; Of the Columbus
and western railway, S52. l97 III: of the Mont
gomery and Eufaula, Sl46,802 SO; of the Eu-
taula and Clayton, SITS q, and of the Ocean
steamship Company, S443, l59 ~. The inter
est on bonds of the savannah and Atlanta di-
visions, and Of the Southwestern, including
bank and Investments was $850,000; of the
Columbus ana Western. S61 600; of the
Montgomery and Eufaula, 100000, and
OF the Steamship Company, $59,22O. The
sinking fund of the Montgomery and
Eufaula was $4,000, and of the Steamship
Company SlO0,G0 The total fixed charges OF
the savannah and Atlanta divisions. the
southwestern ana bank and investments was
Sl,O69 s5S. TIE net income over fixed charges
was 1919. III IL. The net income ofthe steam
ship Company over fixed charges, including
sinking fuLd, was S-S2, F39 AZ: of the Mont
gomerY and Eutaula Sil,S02 60; Of the Eu-
and Western Sl4 So ~ less The total net in
rome over fixed charges. including sinking
tund OF the company, was altogether $685.,
I6i 81, the total fixed charges being $l,4ol,l7S
GAIN IN THE NET INCOME.
Comparing the above results with the re
suits attained the year preceding, gain of
S495, 1870 Sc in the net income over operating
expenses ls shown to have been made. This
increase would have warranted. and larger
dividend would have been declared, but for
the unavoidable concentration in this years
operations of the large amount Of charges of
an extraordinary character, as shown in the
foregoing statement of disbursements and the
under estimate made for the earnings of three
months OAclaFAtlQO n
dividend.
The deficit of last year was then explained
TO have occurred through the inaccuracy of
estimating the final result of the years work
three months prior to the close OF the fiscal
year, the last semi annual dividend being de-
clarable in June ana the fiscal year closing
Aug. 81, AS there is a stringent prohibition
in the charter against paying out more than
Is earned by the property, it becomes i'm
portant to rectIfy any error of this kind the
following year, aud thus the deficit of last
year Is taken up in this years. accounts.
CHANGE OF GAUGE.
The gauge of the track from Savannah to
Atlanta was changed from five feet to four
feet nine inches on Tuesday, June /, and n
like change made in all your other lines dur
ing the few days preceding and following that
date. Half the engines and ears were changed
during the two months preceding and the re-
mainder since that time. 1t was a work Of
considerable magnitude, and required for Its
safe aud successful completion careGuness
for carrying out the multiplicity Of
details involved in it, that necessarily placed
great anxiety upon those charged with the
responsibility OF its execution. The coet Of
this work, so far as it could be eliminated
from operating expenses. was S2lS, 900.
As indicated in the last report. it is pro-
posed to distribute The liquidation of this ac-
count over several years, and with this policy
in view, S54,500 is charged off, as shown in the
statement of disbursements.
THE GEORGIA RAILROAD LEASE.
At the writing of the last report the hone
was entertained that the Georgia railroad
would in the near future sufficiently increase
its earnings to justify the retention of the
balance against 1t on the books, as a solvent
asset, but the failure to earn that portion Of
it's rental for which the company Is RESPONSE
bic for the year closing March 81 by S4i, Sl4 50,
prompts the more prudent polcy of charging
of the old balance TO profit and loss, and be-
ginning with this year include any losses or
gains that may hereafter occur in the annual
account of earnings and expenses. Up to this
date its business exhibits an Improvement for
the present fiscal year as compared with the
same months OF the preceding year.
THE COLUMBUS AND WESTERN.
The net earnings OF this road are practi-
cally the same as the year preceding. The
determination of the Kansas City, Fort scott
and Gulf Company to extend it's road east
ward from Memphis TO Birmingham, decided
the company uDon carrying OUT the original
plan OF eNt cnsion in the purchase Of the CO.
ham to meet the Kansas City road. An
engineer corps is now in the field locating the
undetermined portion OF the route, and the
construction of that portion immediately
beyond Guodwater. already located and prac-
ticaly graded, has been commenced. 1t is
hoped to have the roal completed to Birming-
ham in about one year from this time.
THE KANSAS CITY CONNECTION.
This connection with Kansas CITY, tue centre
of most important producing region OF the
nj fO ~ w. ion Of
country O. ayersCd 10y the com pauy's existing
lines the cheapest channel through which TO
draw ts products, hut also affords the short
est mileage route rom that same region to
New YORK ana other Eastern cities.
IT. confidently bcntyed that an improve
ment in the revenues OF the railroad and
steamship property VIII follow close upon the
completion OF THIS connection. Recognizing
its importance, 10 le proposed TO build and
equip the has ina thorough manner.
THE ALABAMA ROADS.
The net earnings OF the Mon gomery
and Eutaula railway have slightly In
creased over the preceding year, and as
shown hy the tabulatod statement ~ Sli6.-
So 30. which IS equivalent TO its fixed charges,
aut about ~ yer cent. on lts capital stock
he Ltt earnings Of the Eutaula and
Clayton railroad for the past year
ter cent ON its nominal capital stock OF $780,
0 D, and about H., per cent. on the captal II
wuuiu AXE TO con-t ruct the road.
me operations Oi lit OtNNn EltamHnln
Company have been increased over last year.
THE MOBILE AND GIRARD.
a lease OF the MOBILE and Grard railroad
was couBummuted for q period of ninety
nne years rom June The leading condi-
tous are that the company Ia 90 nav this
interest ON us bonded debt. now amounting
10 81 100000, and permit no increase OF the
same, and 81 Do per sEare upon It's capital
STOCK then Outstanding. The capital stock
cons sis OF !2,ee3 shares. Of par value
OF SloV per share, Ur which the company
owns t456 shares. A. Tie read has been
operated for many YEAR, pHst I'm friendly
cooperation with thc company. aud Tie
comuaut H. nirCadv gn indoraer uunu