The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-11-14

nc utuClt Is IN the auxiliary system.
In addition to the expenditures charged
directly to operation are the extraordinary
expenditures including the cost Of the
new Macon depot, tunnels, new rails, new
cars and new engines, amounting in all TO
S493, Isl %, leaving the balance Of net
earnings available for other purposes
S249, So SO.
THE FLOATING DEBT
The Central's net income including the
net earnings as above stated added TO the
income from investments and the S. 49,. =
269 81 borrowed during the year under
the order Of the court, made s., 49l $50 IS.
which was expended in taking up the
Speyer syndicate loan Of the Mutual Life
Insurance Company, part Of the in
deotedness TO the Hanover Ma
tional Bank, the indebtedness TO the
knickeroocker Trust Company, car trust
notes, coupons, rent of roads, interest
and other smaller amounts of indebted
ness. The amount of the floating debt
including interest and commissions to July
was s., SOB OBS 80.
Receiver Conner states that it was not
until December OF last year that trains
could pass through the tunnels on the
Columbu and Western branch, which in
terfered seriously with the traffic of the
line and reduced materially its earnings
he then goes on to state what disposition
was made Of the steel rail purchased.
The receiver, in conclusion, gives an ac-
count of the Rollins reorganization plan.
and the actions taken with regard TO it.
showing that il failed on account Of too
much opposition and failure to meet with
sufficient approval by deposits from the
stock and security holders.
OBLIGATIONS INCREASED As EARNINGS DE-
CREASED.
ments in the report furnishes some in
terestiug facts Jan. ]. 1887. the obliga-
tons Of the Central were 81, G43. 900 the
fixed charges on which were 81 .592. 022 50.
March 4, 1892, the date on which the road
went into the hands OF a receiver. the OBJ
legations of the Central were 81. GAG. go p.
an increase OF about 50, 600 600, the fixed
charges on which were 8, 3S2 1876 IS. With
this alarming increase in the obligations
and fixed charges, the net earnings Of the
property each year have shown large
decrease. The total net earnings in 1881
were s. ,264 ,S9l 81, and in 1912, 8, 263. %
Ool 10, with an increase in mileage during
that time from ,343 to .S9S
These figures show beyond q doubt that
for several years past the net earnings Of
the property have not been sufficient 10
pay operating expenses. fixed charges. in
tercst and dividends and keep il in GOOD
the contention Of the receiver for some
time and il was what Justice jackson
found out and stated from the bench when
he examined the condition OF the
property. If the Central could have paid
these expenses six or eight years ago it
certainly could not have done so during the
last few years, when the obligations and
fixed charges have almost doubled and
the net earnings have shown so large 3
decrease.
TOO LOW RATES RESPONSIBLE IN PART.
Receiver Conner strikes one Of the KEY
notes Of the trouble with the Central and
many other roads Of the south, when ne
says
The Central system has, 10 common
with most other railroads suffered very
much from the general depression, which
has spread over the entire country. re
sulting in greatly decreased trafic. par
tlcularly in the higher classes OF uer-
chandise. These conditions. taken in con
nection with the low freight rates in force
by the state railroad commission, afford
ample causes for the unsatisfactory net
result Of operations for the past year.
With regard TO the arguments before
the commission, showing that many south
eru roads were not earning a fair percent