The Sedalia weekly bazoo. [volume] (Sedalia, Mo.) 187?-1904, 1890-05-13
THE n. II. e. T.
An Unusually Interesting Report
For 1889 and Large Increase
i'm the Earnings.

The report of the Missouri, Kansas
AID Texas Ra,lSay company of its
operations for the year 1889 is of IN
usual interest. owing to the reorgsni-
zation of the compsny, which is now
nearly complete. The gross earnings
were. according to an officisl summary
furnishes for publication, S., 922 a.,
an increase of 81 sol, 400 or % 80 per
cent, over the previous year. The
net earnings were 81, 1853, 115, an in
crease of 1915, 424, or nearly 81 per
cent. The gross earnings per mile
were 81, e27, an increase of s707, or
Is per cent; AMI net 81 1858, an in
crease of S501, or 81 per cent.
The report says that net earnings
have been spent upon the property.
They include 1851, 67S Of extraordi-
nary expenses aud property charge
able to capital account. The net
earnings, with the money furnished
by the reorganization committee, have
amounted up to June l, when the in
terest on the new securities begins TO
run. to s4,0O0,000. This, when ex-
pended, will put the road in such a
c ,ndition that its officers believe the
oper ting expenses can he reduced
from 20 per cent, which they were in
1889, to nearly 60 per cent, or TO the
average rate prevailing during the
five years ending with 1870. The
importance of these figures is that
they show with operating expenses
10 per cent of gross earnings, the rosd
Welded profits that were so per cent
in excess Of tue interest on the new
first mortgage bonds. But it would
appear from the gross earnings for
the first three months of this year
that the road will do much better
than lat year. The figures compared
with those of last year are as follows /;
Month. Aunt. Amt. Iuc'se p. C.
January $685.. 764 sl6S 922 S5 so
February. 5s7,957 1925 2i99
March. 554,l52 4l,559 500
The company estimates the increase
for the frs: four months of The calen-
dar year at s350,0G0 IF that rate of
increase be mai, tained-and the i'm
proving condition of the property
makes it probable the gross earnings
of the calendar year would exceed
50 600, 1000. While that may not be
realized this year, it is safe to estimate
the gr1ss ,rnirgs is IS $50, 900, the
| net of which, even at 43 per cent,
would excel the amount necessary
to pay the interest on the first and
second mortgages and the dividend on
the preferred stock. A statement OF
she five years ending with 1887 shows
that the average net earnings for that
| period were S2,Sl1, 900 a year and
the operating expenses about 81 "a
per cent of gross earnings. The re-
port concludes as follows;
"With the road put for the first
time in its history in fr:t-class condi
ton and with gross earnings consider
ably greater tn an the average of those
given IL is believed that better rats
of net earnings than the above can bt
obtained and assuming hat after tn.
1st of rext June it could be operated
for 81 per cent, of gross earnings fol
the current calendar year of SIS. $50,
1000, the result would show the ne
esrnings of SO, 135, 900. which would
exceed the intere-t on the first anC
second mortgages, and a 4 per cent
dividend on the preferred stock"
the opening of the Indian Tern
Tory, an event contemplated TO
twenty years. AMI which it is believed
cannot be long delayed, so great i
the pressure for its accomplishment
would add enormously to the earn
Iings of the rosd and in addition tn
comps would be entit'e to CLAIM
for the 1892 400 acres of land orig
inaIly granted by the United Stat
government. subject as treaty stipu