New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-04-19
O, B. AND Q.'s ANNUAL REPORT.

In view of the fact that during the last six
months of 1887 the Chicago, Burlington and
Eorthern-a line Of railway that extends from
Fulton, Ill, to ST. Paul, Mimi, with branches
connecting at Savannah, Ill, with the Chicago,
Burlington and Quincy's line to Chicago, and is
corporation that practically is controlled in its
policy by the management Of the Chicago Bur
hngton and Quincy Company-was conspicuous
aggressive factor il the decentralization Of railway
rates all over the West and 10 view of the fact
that during the last six months of the year the
monthly statements of the Chicago Burlington
and Quincy showed unexplained large increases in
the aggregate amount of its operating expenses,
the recently issued annual report of the Chicago
Burlington and Quincy possesses more than usual
interest 1t is a remarkable exhibit. In times
gone by we sometimes have had occasion, after
an analysis, TO characterize some railroad reports
rs being rosy with manipulation Of the figures
representing operating expenses and construction
account-transfers from one 70 the other-and
have frankly asserted that the fictitious addi-
tions to the construction account furnished an
excuse for an additional issue of bonds, from the
proceeds of which part of the declared dividends
were paid. Whatever may be the defects of the
late report of the Chicago, Burlington and Quincy,
they certainly do not partake of that character.
There is nothing rosy in it, and its discouraging
dents brief remarks follows:
Late in the year there was general decline
u freight rates, which has become more marked
Ence the year closed and will be seriously felt in
our earnings in 1888. This is due largely to the
absence Of any means Of sef-regulatlon among
he railroads, because Of the prohibition Of pooling
by the Interstate Commerce law Those who remem-
Der how difficult it was to maintain steadiness in
rates among comparatively small number Of rail-
roads fifteen or twenty years ago, before the pool
ing system was much in use, can easily under
stand the difficulty of doing so at the present
time, with the greater number Of competitors In
the field The law attempts TO check the effect
Of prohibiting pools by the long and short haul
provision; but unfortunately the check amounts
TO but little, because there is almost always some
one competitor with little local business TO DC
affected which has the power TO fix through rates
for ALL and hence 10 force those lines which have
built up a valuable local traffic either to 60 out
Of the through trlic Oh reduce hcal rates IL Tie
devel Of the through rates. But In such cases
there Is really no choice Tor the reason mat the
competition with similar business at the strictly
competing points of which there are now great
many; and to attempt TO maintain rates upon II
by refusing TO meet ne rates made at mel .hbor-
ing places where two or more roads intersrct is
simply to drive al such business away from the
1t is singular that the discovery Of the true
and exact effect Of the Interstate Commerce Law
should have been reserved IOr railroad man.
agement which during the last nine months, di-
rectly and indirectly has been actively aggressive
in demorahzing the traffic Of nearly one fourth of
the whole country. Tie following tables show
the mileage traffic financial results and the seps-
rate income accounts for three years:
v....,., n, MIL,Aer i ,sIs rRAFF gss, 1907
:.::; ss. a ,ss::;
FINANCIAL RESULTS
From From
From mails ,Iprsss;ic i7osiSi IsS7sis 2s7SSeG
Total sros. s2o,5s6 425 s2a72s,aO8 s27.576Ts
taxes l44Os7ss I,4sl.sss lsos7sls
.aminss--.... sI2-I5O 657 sI22s6,72S sli47siss
Years. INCOME ,sss AcooUN 1sse 1887.
6.s: sssgs sias GREECE :,s5:s
Bur a No. R. R. r.
Land Grants-.---..-. ss5.79s s46,77l ss7OS3
Total income sss sisSss.sss si2.so4SOs
Interest," bonds S4.294 1853 s43sl OoA s45s7 762
nnsiDs fund pay s.e.o 80
rent Of track, depot is7iT S sSs3sYis 1851
Total first charges s6.i27ss4 s52i45i4 ss2so Oo4
Year surplus ss.oOLo2l ss+s4s24 s7ois.2Ie
land 49,. sl.OooooO si.ooo.ooo
psid --.....-,.... e.lios72 sno72a G1ll.oe4
rosAL..-.---.- s7.ilO67s s7no7as s9Iii.os4
ssplus carried over sI4eo44s sls7S,so7 Al so7 Iss
Bad as Last years results seem TO be- thev are
lad only by comparison. A result which. after
The payment Of per cent dividends on the stock.
Raves remaining surplus OF sl,J07,l55 nearly
z per cent on the stock TO he carried forward e
not discoumging feature particularly when the
Character and policy OF the management during
re last six months Of the year IS fully eompre-
hended and IL is warranty OF better results
when conservatism again shall control IL il be
objected that in last years income account there
= no transfer Of earnings TO cr'dit Of renewal
Innd the reply is that renewal fund is only an
ysher name FOR income account H. represents
sunds supposed TO be put aside for future use in
ssns"ing plant and equipments. The account