The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-10-29

TALLY local in its operations. The Mont
gomery extension has brought 1T into con-
nection, and to some extent into conflict
with numerous other lines, and the success
with which new problems are grappled
with is attracting aihteption. So far as one
can judge from the very complete annual
report whiolh is issued today, the road is
getting into shape rapidly to do an increas-
ing amount of low-grade work on dirnin-
sshdng margins, not at a loss, but with
some measure of profit. This on the whole
probably is 1.-The best test of successful rail-
reading.
Unforeseen hindrances and unexpected
cost of construction made it impossible to
finish the Montgomery line much before
the end of the fiscal year. The earnings
and expenses of this division accordingly
are excluded altogether from the income
account, and the mileage embraced in the
statistics remains unchanged at SIS miles.
The accounts then show surplus earnings
over all expenses amounting ito $4,000, as
against $i5, 900 in 1898.
AT first glance these results signify little
for the stockholders. 1t appears however,
upon examination that very large extraor-
been made out of income in each year; that
in consequence of these expenditures the
efficiency of the road as transportation
machine is steadily increasing, and that but
for the increase in efficiency the company
probably, at present rates, would find it
difficult to make any net profits at ALL The
circumstances are such that it might he
impracticable, even If desirable, to make
~, frop MI aI
account. In short, all expenditures of ev-
cry kind, save only the cost of completing
the Montgomery division, have been
charged ito income and the future will
make manifest the wisdom of the present
necessary sacrifices.
The income account succinctiy Stated
shows what has been done during The past
year as follows:
Gross earnings. 80. -. -. -. ..$4 12S,3S9
Operating expenses and taxes. 49,. 3079,522
Net earnings. -. ...... -. 80. ...sl0iS,S67
Total net income..... ISL ol ,6Sl
Rental and interest,". -. 90. go. IA, s2I
Special appropriations. -. -. e.. 271 ,74S
Surplus for the year.. -. 80. ...$ 1886
The key to the situation, of course, lies
in the item of Especial appropriations.
The operating expenses show disbursements
of $9l5 per mile of road for maintenance of
way and structures, this outlay following
similar alotments of 1886 per mile in 1898.
These allowances are probably $3.50 to $500
per mile in excess of the permanent require
partment 'lhe C!rect expenditures through
operating accounts appear to be rather be-
low the standard, but the deficiency is much
more than made up in the special appro-
priations whioLh include $SS goo put into new
equipment and payments upon the prirci-
pal of car trusts, we'll as $4,000 expend-
ed for ballast, new freight yards and other
items in the roadway department..
The report is unusually lucid in its treat
ment OF the important subject of equipment
maintenance, special pains being taken to
show that no shortage in capacity of
freight cars is permitted to occur. Com
p2ning 1899 with 1896, the equipment list, the
new Montgomery division apart shows an
increase of thirty-one in the number of
locomotives, fourteen in passenger cars and
3l4 in freight cars. The capacity of the
rolling stock, as matter of course, has
been augmented in greater degree than that
of the increase in numbers
When we come to the operating side to
discover the effect of the recent OUTLAWS a
very creditable showing appears. Mobile
and Ohio is compelled to do business Writ
ually at trunk line rates. This has been
the course of ten-mie revenue: In 1896, III
mills 1897, 6.93 mills; 1898, 623 mills; 1899,
5.S3 mills. The decline has been met in the
only way possible, by a steady increase in
train loads. The advance here has been
from III tons in 1896 and ito 1874 tons in 1897,
PIT tons in 1898 and 227 tons in 1899. Train
mile earnings, though low accordingly,
have been maintained at 81 % to 81 SO. Mo-
bile and Ohio's record in this respect would
do credit to more pretentious lines, and
promises well for its future.
MIR. LECKY ON KRUGER
From the London News