St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-04-03
CONDITION OF THE 70"
Decrease of Two Millions in the
Net EARNINGS.

Boston. April 2.--The annual report
of the Chicago, Burlington & Quincy
railroad is given out this morning. An
epitOme of the operations reported is as
fellows: Gross earnings, S26, 77S. 3l2;
operating expenses, taxes. rentals inter-
est on bonds and sinking funds, S24,052, :
$50, leaving net earnings of S2,725 1852.
Interest and dividends received, $972,-
SS6. Total, S3,39S.42 Dividends paid
4 per cent S., ,704 surplus $542, 721.
Net land receipts, S291 ,443. In 1888 the
gross earnings were So, 6S9, 167 and the
net "a, 906,707 OF the increase in gross
earnings nearly all is in the freigh t
department where the earnings were
SIS, 10000, an increase of So, FOG, 900
over 1883. The outside system of con-
troiled properties are included in the
above only SO far as they have paid in
terest and dividends, which have gone
into miscellaneous Income account.
This system consisted a year ago of
ILLS miles of standard gauge road. 2lS
miles of narrow gauge and 90 miles
jointly operated. 1t has been reduced
during the year by As miles of narrow
cific, which has been broad-gauged and
total debt of these properties, now
owned by the Chicago, Burlington d
Quincy company, is ST.. III 900, against
SIG, 200 year ago. The gross earn
ings were $7.345, SAT, against 1904, 1856
in 1888; the net earnings, So, :2,94, ST.,
against 81, 1908, 045; paid by the Chicago,
Burlington IL Quincy, 1886 1856: net de-
felt, 1854, 366. The report says it should
be remembered that 1855 was the year Of
The Engineers Strike
which cost the company s5,0oo,0Oo. In
fact, the net earnings showed decrease
in 1885 as compared with 1887 Of IS, 125,-
600, of which 81, 553, 200 was upon the
''outside' system. President Perkins
depotes two pages to the railroad situa-
ton, i'm which he says: sit is more and
more apparent as time goes on that
until the interstate commerce law is
modified we cannot hope for settle
ment of the rate troubles. The long
and short haul rule as interpreted. and
the prohibition OF pooling, have been
shown to be inSurmountable obstacles
to the satisfactory conduct OF business.
Slight notifications to the two pro-
visions, while preserving all the people
want, namely, just and uniform rates,
would enable the roads with reasonable
state laws to so regulate themselpe.
as to give fair opportunity for profits
This is becoming so obvious that your
directors hope the public will not longer
refuse to give relief. Railroads are fix
lures and cannot be taken away, ne
matter how Improbable they are.
Roads in the West are owned almost
wholly by persons living in the East.
hence Western public opinion has been
slow to see that regulations making
reads improbable would either deprive
the people of facilities for transporta-
ton or hurt them in any other way.
The prosperity OF the community is SO
largely dependent upon facilities for
transportation that the public will i'll
slst on having them. We are forced to
the con cluSion that the laws must and
will be amended by the good
Sense Of the People
so that the roads can be managed as a
business undertaking on business prin-
ciples. Holding these opinions. your
directors have felt justified i'm making
moderate expenses and borrowing
money for the purpose where it was
clear that the permanent interests Of
the property required, and that it could
not safely be postponed. Present re-
turns do not encourage the investment
of additional capital. Should existing
conditions continue it is question Of
time merely when we must stop adding
to CT Improving the property"