The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-04-18
THE SOUTHERN
RAILWAY co.

From New York Commercial Advertiser.
The Southern railway has made interest,"
ing financial history since the present COM
pany began operations July l, 1894 1t has
multiplied It's mileage two and one-half
times; has in the last three years done
S12 900 worth of financing annually; has
kept its plant or rather, has brought its
plant into first-class condition; has at no
time incurred any floating debt, apart from
the customary operating liabilltles; ana
has now increased its surplus above all
charges from 1si per cent on the preferred
stock in 1895 and 1898, IL per cent. in 1896,
and less than per cent. in 1897, to 3 l-6 per
cent in the first eight months of 1883,
with good prospect for making the dlVlSl-
BILE surplus for the year not less than 312
per cent. The company has divided l per
cent. on the preferred this year; 1t paid
the same both last year and the, year be-
fore. With net earnings averaging nearly
SS5, 900 a month more than in 1S97-9S ac-
cumulated surplus of S1,500,000, and a 31a
per cent. distribution possible, an early in
crease in the dividend rate is naturally an
ticipated and the preferred shares i'll the
market profit aecordin gly. We understand,
in fact, that semi-annual dividends will be
declared regularly hereafter in April and
October, beginning next october, probably
at per cent. per annuln.
The income account for the current year
TO Ndrcn III comparison Will 1881 figures
out in this wise, the Memphis division being
included in 1S9S-99 but not in 1S97-9S, as 1t
did not come into the system until March
1, 1898: Earnings, eight months to March
!, $le,S22,4 ALL. against So2; operating ex-
penses and taxes, 81, 206.753, against $9,269,-
740; net earnings. $5,615G5S, against $f,609 062.
The company's "other income" for the
eight monhs will be about s25O,000, making
the available net income not far from
So, 600. The fixed charges last year ag-
gregated 1898 co., but this Included the
Memphis division interest for only six
months. Allowing this interest for the full
twelve months of the present year, the
Southcrn's total fixed charges and other
probable deduction from income will APP
proXmate $6,075,000 for the year, or $4,050 900
for the eight months. The surplus thus
stands at 81 $4,000, or 1-6 per cent on the
preferred stock.
In the last four months of the fiscal year
1898 Southern proper and Memphis and
Charleston earned $2,109,000, including 'other
income" and the proportion of fixed
charges would be $2025.0e0. Obviously little
was earned for dividends. But 50 far this
year the Memphis division, being reckoned
for both years, net earnings have in
creased 1000, or $S4 900 a month, and this
Notwithstanding q decrease in February
because of the southern blizzards. In Or
der to show S15 per cent. on the preferred
for the year the net income must be s., 005,-
Vuu ol WHICH 9l,clo,VUO mas already been
secured so that an average increase in net
of $4,000 month from now until July will
suffice. An average increase of sos, 900 a
month, which was exactly that of last No
| yember, would yield per cent. on the pre-
ferred stock. 1t may be mentioned here
| that the maximum fixed charges as pro-
| vided in the reorganization plan already
| have been reached.
| The Southern's reorganization was so
| carefully worked out, its annual obliga tions
| were brought so surely within its income
I and it's progress from every point of view
| has been so marked, that we have prepa red
| in circular form the following exhibit OF
the money that the company has had to
spend, and the way in which it has eoent
| it, as facts may be drawn from the b;. ance
| sheets of 1895 and 1928:
RESOURCES-1S96- IS INCLUSIVE.
Surplus income. -. -, IS $50 2Os Of
Preferred stock issued :. :. :. 1925, 400 20
FUNDED debt increased :. :. :. q, SS5, 600 %
Certificates of Indebtedness is
sued... =. =, =. -. -. 1,0ee, Goa %
Operating liabilities increased. se5.el5 e.
Other current liabilities in
creased. 49,. :. >. ..,.,... 52a55so %
current assets collscted.. 49,. =. 4G651 81
\
Total. ...-...s,....,,g.., ..s ..,ss1,65t 8 ~
Applied as follows:
! Debts OF leased lines paid. S11 81 600 %