The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1889-09-08
BIG IN CREASE IN BUSINESS.
Interesting Facts From the Annual Report
Of the Northern Pacific.

Interesting Facts From the Annual Report
0f the Northern Pacific.
From the Railway Record.
We are unable to give an approximate
calculation concerning the net results of
the last fiscal year of the Northern Pa
ciHc, which ended June 81, 1889. The
road Is truly a wonderful property. Its
earning capacity had not u fair chance
to show itself because the managers have
had at no time sufficient roll
ing stock to supply fully the demand for
transportation. 1t must also he reInen-
bered that the railroads OF the Northwest
were in n constant state of irritation dur
ing the period covered by the report, and
that during that year the lowest rates of
freight were charged that have ever been
known west of Chicago.
The first half of the present year has
developed several prominent increases in
net earnings i'm the Western country, but
i'm nearly all these cases the gains have
followed very heavy losses i'm the pre-
vious year, changes in the situation ac-
counting for the changes in the results.
On the Northern Pacific, however, the
gain is not only of very large pro
portions, but il comes after a heavy i'm
crease i'm the years preceding. To give
an idea of he growth in income, il is
only necessary to say that the addition to
months has reached almost S4.OOO,OO0-in
exact figures, $s,S6l ,14O. OF course there
operated, on which the earnings are based,
but that Is of comparatively little si2nif-
canoe, as it is doubtful whether the aver
age for the year will he quite 2OO miles
greater than in 1SS7-ss; certainly the in
crease cannot run above that, as the aver
age for the year prsceding was a,2ls miles,
at 3aA5 miles. and the average for the
twelve months would of course be less
earnings. moreover, as already said, has
been continuous. The gain i'm the pre-
yious year had been less only than in the
and int he year before that there had
been an Improvement of over Sl,OOO.OOO.
,ps .r rssslt r,i is ,ha Of in, IN S shssf Se Pn.
ciflc have risen from 81, D,521 i'm 1885
to SO, 7O7, 46s i'm 1883 ., or about Ss,OOO,oO0.
in the whole history of American railroad
undertakings.
The steady increase of earnings, both
by a careful per,Isal of the following ex-
hibit of the business of the road during
In addition to the net earnings, the
company enjoys various other sources OF
income; notably the interest arising from
security of branch lines held in the treas
ury. In the calculation below we have ass
sumed that this item should Ike 100000
s sSar%ss 'f for Which, Sa' th aS' afs is
y. Liable for rentals and interest have ma
terially increased during the year. A con-
TO the fact that the sinking fund clauses
of the mortgages on the branch roads, as
well as on the main line, nave become
. the sinking fund have become peculiarly
, heavy, yet they have been charged up at
once as "a current expense. Notwithstand-
ing this fact, our readers will readily un-
.lerstand that the intrinsic value of the
property has been Increased to thai extent
al the expense of the stockholders.
The change in debt during the last year
,outside of the branch system. which is
always treated separately have not been
very Important, except that, as il known,
the remainder of the third mortgage
bonds not reserved for the re-
demption of the dividend certificate
has been put out. The increase in this
nav has been about and
against this the company has Increased
it's stock of material and supplies ON hand
from Sl.512. i9i tn S2.2o6,6i6. Ii also spent
sl.2ls,S yl during the twelve months for
new construction and equipment. In the
land department 573.2l4 acres were sold
for Sl.S27 .9o5, and The total sales, including
town lots. etc., were S2..l. ,6i5. The re
ccipts were 81 ,269. .s61 in cash and S3l6,o4o
i'm stocks. and the deferred payments on
account of land sales now amount to 50,
1871. There were OH June ID. lSSs. 80.
1914 of deferred payments on account
of land sales. of which S2.ODs,ss6 was APP
plicablc to the retirement of the genera
first mortgage bonds, S2,2US, 80 to- the Mis-
souri, and Pend d'Oreille division bonds
and S9oo, 461 To the preferred stock.