The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-11-05
Reosiver Comer,s Report.


The report which Mr.. Conner, receiver for
the Central railroad. has submitted to
Judge Speer Of the railroads financial con-
ditlOn is a very full and complete one. The
earnings and expenses of the main line, its
auxiliary and leased lines, together with
tn Sc of the steamship companies, are given
for seven months of the time the road has
been in his control. and they are compared
with the earnings and expenses OF the same
months Of 1890, the year Of the roads largest
earnings For the seven months Of the
year 1890 these earnings were S4,T4j, 176 A.,
aud for the seven months of this year they
were s. 200, 1O3 g., showing a falling of Of
Si44 ,552 81, or about $4,000 month.
The reasons for the falling off are given
at considerable length. Among them are
the following: The depressed condition Of
business in the south, increased competition,
the reduction of traffic rates and the build
ing Of railroads into the territory which
was formerly almost exclusively controlled
by the Central.
The net earnings for the seven months of
this yesr have not been as large in pro
portion to the gross earnings as they
it has been necessary to spend great deal
of money in putting the roadbed and
rolling stock in repair, both Of which we're
found to be considerably run down when
the road came into the receivers possession.
The report shows clearly that while the
gross and net earnings Of the main stem of
the road have been maintained about as
we'll as could be expected under the de-
pressed condition Of business which has pre-
vailed for the last two years, there has been
very marked falling off in the net earn
ings OF nearly all the LEASED and auxiliary
lines.
noticeable feature of the report is the
steady increase since in 1887 of the per-
centage Of the operating expenses In 1887
the cost Of operating the Central system
was 30 per cent. Of the gross earnings. In
1891 it was rs per cent. An interesting in
quiry is, what is the reason for this marked
increase in the operating expenses! Is 1T
because the lines that have been added to
the system cannot be operated as eco
nomically as those which composed the sys-
tenn before the new lines were acquired, or
was the system permitted to run down in
1887, making extraordinary expenditures
necessary during the following years, or
are the traffic rates below fair profit line?
Whatever the reason, it is evident that rs
per cent of the gross revenue is an I'M
usually high percentage to be disbursed in
operating a great railroad system.
Mr.. Conner does not express an opinion
relative TO the solvency of the road, and it
is doubtful if any one but rail
road expert could give an opinion
On that subject, based upon the
report, that would be at all valuable 1t is
evident that the net income of the road this
year win not meet the fixed charges. The
question which presents itself is whether If
the road receives financial aid, business
along the now comparatively proatless
leased and auxiliary lines will so increase
within the next five or six years as to en-
albeit to work out of Its financial difficul-
ties. The Hollins party, it is understood
have become the holders of the roads float
ing debt with the belief that it will. The
traffic of the road is certainly increasing all
the time. With its present equipments it
is not able to handle satisfactorily
all the business offered it, and a very con-
siderable increase in its rolling stock is being
made.
1t looks as if the gross earnings of the
road would reach very nearly $4,000
this year. If they do the belief that the road
will be worked out of its present troubles
without reorganization will be greatly
strengthened.
1t is thought that when the road has been
put in flrst-class order it can be operated
for &c per cent Of its gross earnings. That
is the basis upon which most Of the great
railroad systems Of the country are oper-
ated. With SS,O0O,OOO of gross earnings
and operated for 66per cent, OF that amount
it would be able to meet all of its fixed
| charges.
Not Correct Opinion.