New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-02-28
NORFOLK AND WESTERN AFFAIRS
A STATEMENT ISSUED SHOWING THE NECESSITY
FOR PLACING THE ROAD IN RE
cEI,-rpc' .\DS

CEIvEEs' HANDS
Philadelphia. Feb q 1Speciap.-The management
OF the Norfolk and Western Railroad company
made public to-day statement. In which are clearly
set forth the conditions that created the necessity
for the recent appointment. ~ receivers Ihe
statement opens with the following exhibit or earn
ings for the year 1894. whch are made public Tor
the first time Gross earrings. 5000 49,; operating
EXPENSES and taxes. SI6a3,9)5; leaving as pet earn
ings 2.6+5Ji7. decrease Of NSS,6O; other income
was $l3J.5S, making the total income for the year
se7S2 1885, against which there paid total Interest
charges Of scO2 S. 90 rentals OF leased lines. $50
si 4s: loss in operating leased lines. Nf7 %; sink
ing f,,d equipment mortgage 1858. Si,3OO %; total
g. 10 J2s a. The deficit for the year. after the pay
ment OF ali fixed charges. losses on leased lines
and sinking funds Is thus shown to have been
sSlS392 in addition 10 which tire company had 10
meet maturing payments on car trusts and other
c,pitaI accounts and to this end had to borrow
additional sums OF money thus adding TO its pre-
vioue floating Indebtedness so that on January 81,
1885, tho floating debt of tho railroad company IN
81 idins that Of the Roanoke Machine Works. the
entire stock and bonds of which corporation are
owned by the railroad company amounted 10 VI
ns4s. represented by bills payable. secured by
collateral belonging g the company. The unpaid
vouchers taxes payrolls and other current ab'li-
ito, exclusive Of January accounts amounted 10
ss5s 4G2 The statemer also shows that In 1873 the
dedcIencv. computed like manner. amounted 70
s277. s33.
During the last wears the company operator
4eq miles Of new Lines through sections or coun-
tr, IN which mining and other industrial enter
nrses had to be- inaugurated and encouraged, whlie
ful Interest charges the cost OF construction
of the new lines had be paid ana, as LOT the
m, Il mart these lines were through mountainous
country recurring numerous bridges ana runners;
their construction necessarily expensive ahu
ths interest charges corrcspondingly heaVy II is
shown how the business depression retarded tne
earnings OF these lines and that the gen
al redu freight rates IN the case o tt'
Norfolk and Western resulted In heavy taliine
off I'm net earnings. The statement is made that
the payments account Of principal OF car trusts
during the next eight years amount 10 nearly
81 oooo. and tho 'essty for the appointmetnt
OF receivers Is succinctly stated in the toIiowhs
words The interest charges rentals car tr ,h
pavments and sinking funds payable during tne
wear 1875 aggregate about N,UOpp more than uhe
NOT earnings Of 1894 and by reason or the lnabnty
of tho company to its fixed charges during
tho w preceding years and by the business con
diton. generally prevailing and the loss OF conn
donce IN the companys ability to meet lis oDiiga,
,ione the companys credit was 80 impaired ana
tho market prices Of It's securities 80 much anectei
tha, the MANAGEMENT OF the company were unable
I, 10 make the necessary financial provision.
on February y committee was requested 10 exam
Inc the companys condition. and reported recon-
rnendation that the interest on the more recent
issues OF the company's bonds should be reduced