New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-18
PASSING ITS DIVIDEND.
THE HOPES OF STOCKHOLDERS NOT NET
THE INCREASED FREIGHT BUSINESS OF THE Ball
TIMoRE AND OHIO RAILROAD OFFSET BIZ
EXPENSE OF IMPROVEMENTS
rsY TELEGRAPH TO THE TRIBUNE


Baltimore, Oct 17.-As was expected, the Bah-
more and Ohio Railroad Company passed its third
sem-annual dividend the meeting of the directors
to-day. Some of the stockholders had INDUCED the
hope that the company, by It's reported increased bu
ness, would strain point to declare small dividend
to prevent the stock from going any lower. A semi
annual dividend Of per cent the stock OF the
Washington branch declared, but this branch al
ways earns dividend. The passing of the dividend
on the common stock had no effect the market. A
prominent banker, commenting upon it, declared that
1t would be three years before the company could pay
a dividend.
The financial statement submitted to-day showed
the gross income fiom all for the year TO be
S6777 900. The total fixed charges amounted to
S5,9eG,oO0 debt retired, including trust bonds,
payments to the city for account of Pttsburg and
COnnellsvle branch purchase and sinking funds paid
in cash. $3s6,oOO dividends preferred stocks,
S3O0,0O0 total charges against income for the year,
including the retirement Of S366,O0O Of indebtedness
and the dividends the preferred stocks, S6672 900
balance, 100000. In addition to this, the company
retired July s366OO0 of per cent bonds held by
the State of Maryland, which will decrease the fixed
charges account of interest for the future. Pres-
dent Spencer called attention TO the fact that In con-
siderng the statement of the roads finances It should
be borne In mind that the statement for 1857 In
cluded the operations Of the Baltimore and Ohio Ex-
press and the Baltimore and Ohio sleeping car de
partments, while those for 1888 include the sleeping
department for only nine months, and do not In
clde the express department for part OF the year
While the gross earnings have decreased $297 0O0 the
gross earnings from the express alone in 1887 were
81 1903 900, showing that If the express deparme
had been in operation in 1888 upon the same basis as
in 1887 the gross revenue would have shown an In
of 81 O16 0OO instead Of decrease OF nearly
$297 ,OOO Or in other words, there has really been
q gain of 81 100000 in gross revenue I'm the other
departments of the service this year. Tho net earn-
ings have decreased S489,O0o, the operating eG
penees having increased 1892 ,O0O but the following
facts should be taEen into consideration in this con-
nection. The net difference on account Of the ex-
press s12O 900, against which the company has
had the benefit of the cash which received the sale
of the express property and the dividends upon the
stock Of the United Express but these dividends
appear this year interest account instead OF In
Earnings. There has been difference in net
earnings, account OF the sleeping
cars of $500 There was expended upon
road bed and bridges with the view of improving the
condition of both 1925 900 more in 1888 than in 1887.
With view of corresponding improvement, there
increased expenses in the repairs Of locomotive
and burden alone for the year Of $154 ,00O max
ing an aggregat of s479,OoO spent out of earnings of
the year in improving the roadbed and equipment
above the amount so expended the year previous.
This makes total Of $71000O which, as the gross ex-
penses increased only 1892 900 and the net decreased
S483 600 shows what marked economies must have
introduced in other branches of the service II the
increased expenditures the roadway department and
upon the engines and alone had not been made,
but that amount been added to the balance for the
year of 500 900 all fixed charges and dividends
on preferred stocks, the net result would have been
approximately 1000, nearly per cent upon
the common stock
The president trusted that all this would bo regarded
as quite satisfactory when il is added that the freight
carried during the year over 100000 tons, or
more than per greater than in the year previous,
and considering the great decentralization that has
exlsed in freight during the creator portion of
the year.
While the above exhibit is represented by the pres-
dent be encouraging 1t will not likely be so received
by stockholders. President Spencer since the begin
ming Of his administration, has been cutting down
expenses by dispensing with the retinue of assistants
and secretaries attached to the presidential Office under
the CARROTS The salary list has also been cut down
considerably in other departments but notWtnstand-
ing the economical policy now pursued, the Baltmore
and Ohio has a tremendously heavy burden TO carry.
Its friends say however, thar II is gradually recuper-
atng financially and physically and that In another
year IL will have recovered from the shock II recev cd
wben after the death of John W. Garrett its true con-
dtion became known. Meanwhile the Individual
holders of stock get rid of II as fast as they can