Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-01-01
ROADS IN THE SOUTH.
rHelR EARNINGS AN INDICATION or
TIE REVIVAL or BUSINESS
NJ psss Tear Dsvsssd Largely 10 Reor.
ssasAsssa ana Rehabilitation Tho
0nss Dlvsrwins rrem Rschuopd

- Sest xeaR Devoted Largely 10 Reor.
Summation ma Rehabilitation I'll.
Nnss Dlvsrxlne sren Rlchmopd
---
Prepared for the p,spstch under tho
personal supervision OF Mr.. John skel-
son Wullatns, OF the banking firm OF
joan La Williams & Sons.)
The year 1883 was one OF financial revo.
buttons. OF disaster. and dlsintesration
that OF 1884 while not exempt from
economic eruptions and disturbances.
such as the great strikes. the labor up-
ris'ngs. tariff changes, and uncertainty
regarding our national currency. has been
generally year OF recuperation and
gradual recovery.
For the FIRST six months OF the year
railroad earnings showed an immense
falling of. as compared with the corre-
spending months OF the year previous,
but about July the tide seemed to turn.
and. while the earnings OF some roads
have continued to decline, the earnings
OF our southern roads have been, for the
most part advancing. giving positive
Indications OF the revival of business.
great railroad prosperity.
a YEAR OF REHABILITATION.
While 1895 was distinguished for the
unprecedented number OF railroad wreck
ages which occurred, the past year has
been pre-emlnently one of reorganization
and rehabilitation. More railroads have.
In the past year. gone through the re-
pair shop. been thoroughly overhauled.
and bern started out on new careers
under the guidance of fresh capital and
fresh brains, than In any one year
hitherto. The most conspicuous reorgani.
bation OF 1898 was that OF the Richmond
Terminal system. not only the first large
reorganization to be successfully carried
through in the South. but the first in this
country since the late panic.
One most important feature OF the
present situation is decidedly less an
tagonistic feeling on the part OF legisla-
tors towards the railroads. This senti-
ment Is showing itself not only In the
halls OF Congress, where the bill which
makes pooling" among railroads per
Missile. Is now pending with excellent
chances of passing. but among the State
legislatures Chat OF Georgia, for ex-
ample). and with the railroad commits
sionefs there IL manifested a much more
liberal. Hve-and-let-live policy than has
been shown for years past. The law
making bodies have learned what 1t Is
TO kill the goose that lays the COLDER
egg, and they see that In the legislative
sirangling Of railroads the Wall-street
brokers are by no means the main suf'
ferers.
NOT MUCH BUILDING.
That the energies of the people have
been much more directed in the pas
twelve months to the reorganization ant
rehabilitation Of existing roads than &c
the construction OF new lines, is shown by
the fact that. according to the Railway
Ase. there were only 1919 miles Of rail
road built In 1894 In the whole United
States. which is less than any one year
since 1875 and the lowest since 1850. with
the exceptions of the years 1854 and 1850
and the war period Of 1S9-1S66. and the
year 1875,
OF the Nv mileage constructed ir
1894. 495 miles are credited to twelve
Southern States. In two Southern State.
CKentucky and Maryland not mile OF
new road was built. Virginia reports
five miles Of new railroad. Arizona lead:
In new mileage with 1893 miles. The ave
rage mileage constructed each year FOL
the past ten years was s, 80 miles. The
year in which railway construction
reached its maximum OF activity was 1881
laid. We give below statements OF th'
earnings and operations for the las
fiscal year of various railroads diverginf
from Richmond. and In which our people
are largely interested.
SOUTHERN RAILWAY COMPANY.
About two years ago the task OF un
tangling and of delivering from the throe'
of almost hopeless bankruptcy that grta
system Of southern roads operating many
thousand miles Of railway in the soutf
Atlantic and Gulf States, and known az
the Richmond and West Point Termina
system. which had been brought to IT!
then desperate condition largely through
unscrupulous methods OF financiering an(
inexcusable mismanagement. was conhdeC
10 the well-known clearinghouse o.
DrexeI, Morgan & Co., of New York. Oh
MAY ], 1895. tust prior TO the panic. Messrs
Drexel Morgan 4 Co. announced theil
scheme Of reorganization, but on accoun
Of the desperate financial situation, very
little procress was made until the winter
Of 1904. on February Goth Of that year
q modification OF their original plan wa'
announced by Messrs. Drexel. Morgan q
Co. It's terms were accepted by the grea
majority of the security holders and aftel
some little further delay the reorganiza
ton was successfully carried through
The various roads OF the system Were
sold out and repurchased by new corpo
ration, known as 1.-THE Southern Railway
Cofnpany," whose charter was granted
by the Virginia Legislature. This com
many has purchased at foreclosure sales
some 3.159 miles Of road, and has assumet
the operation OF some 1,24 miles add
tionai under leaseholds and other agree
ments, SO that the company Is now ope
rating a total Of about 4,4O4 miles OF road
The new company has provided for th'
issuance upon the new property OF abou
S1aO. 600 600 new Observation-Disclosures 8 pei
cent. bonds. OF which TS.0Ss.000 are to bt
reserved to retire outstanding obligations
etc.. OF the old companies; sI.Sll.cO new
bonds TO be issued at once. and S20,0ooc
10 be reserved for future extensions anc
additions to the company.
The plan also provided for the issuance
of SEQ. 00.OC0 new per cent preferred
stock, and about SIZE. 0o0. 900 common stock
The fixed charges for interest, etc, or
the reorganlzed system will amount e
about $4,000 in 1895. and about $4,000
In 1896.
The gross and net earnings Of the 44o
miles OF road for the past five years. end
ing June Goth. according to a statement
recently published by Messrs. Drexel
Morgan & Co., have been approximate!
as follows:
Gross Net
Earnings. Earnings
tsa, .,,.......S2l, i7S.Cpo s6729. 90
1892 ................2 20. 10000 60l2.p
1888 NEUTRALITY-SUSPICIOUS.. lsfc.'VV 1919
1894 OBSERVATION-DISCLOSURES. I,U1,OO 4,paW
Much credit is due Messrs. Drexel. Nor
gan g. Co. for the great measure OF sue
ii cd cnla