Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-08-15
THE BUSINESS OUTLOOK
BALTIMORE BANKER HAS CONFI-
DENCE IN PRESENT CONDITIONS.
Remarkable Increase in the Earnings
Trade-Industries Expanding.

was the subject of an interview yesterday
of Star reporter with a prominent Balti-
| more banker. The gentleman interviewed
was satisfied from close observation that
nothing but the election of Bryan will pre-
vent the nation from enjoying many years
of prosperity. His reasons for the faith
that is in him are stated below:
| In the first place, he said, the railroads
| of the country are on a sound footing. A
| large number of them have been reorgan-
lied and their securities adjusted to a safe
basis calculated upon the ascertained mini
mum earnings Of the property. 1t can be
safely said that there has never been such
a broad foundation of actual values under
railroad securities as that existing at the
present day. The growth in traffic and in
| revenues during recent years has been lit
tie short of marvellous. Going back for
only the past three years find that for
the whole railroad system Of the country
the Increase in gross earnings for the cal
endar year was. in round figures, S1p,HD,-
900. succeeding SH,OOOUIU increase in 1888
and $I5,oOo.GD increase in 1897, making an
aggregate Improvement for the three years
of over $26ONob.uNo.
The wonderful progress made by our
great transportation lines obviously re-
fleets the activity and expansion that has
occurred in all lines of industry, and is
strikingly significant of the prosperity of
the agricultural and business interests Of
the entire country. The tremendous addi
tons to the nation wealth, contributed
by the unprecedented increase of gold out
put, bountiful cereal and cotton crops, phe-
nomenal iron and coal development, record
breaking exports of manufactures, etc. in
recent years are well known facts. To
prove this assertion the statistics are easily
available.
While this is not year of bumper crops,
the average yield will be large; and though
some roads will derive less revenue from
the grain tonnage, owing to drought in GER
tain localities, other roads, particularly
those running through the middle west and
southwest, will enjoy exceptionally large
traffic from the enormous yield of wheat
and corn in the country tributary to their
lines. Railroad rates are probably better
maintained at this time than at any period
in the history of American railroadng. The
great trunk roads, and through them the
smaller lines, being controlled by powerful
interests by joint ownership and closer re-
latons. are working tremendously together
to perpetuate this condition.
Earnings for Past Year
Statements of earnings for the fiscal year
ended June 30, 1900. very satisfactory,
showing as they 90, large additions to last
years record totals. The returns from sew
eral leading railroads will serve to illus
trate: Atchson reports for the year total
gross. S46,2520T0 an increase of So u.s. $50:
Baltimore and Ohio, gross, S34S1S,719; in
crease, $6043,077. Burlington and Quincy,
gross, S47.535. 420; increase, S4145,9ss ST
Paul, gross, S41, SS4. 692: increase 1854, $50
Union Pacific gross, S23,046,907 increase,
81, $50, $50. The statement of the Pennsyl-
vania for the month of June and for the
half yearsto that date is most remarkable
and, owing to the extensive territory COW
cred by the lines of this great property and
the exceedingly varied character of its bus
fness 1t is accepted fairly representa-
tive of conditions affecting other railroads
For June, the Pennsylvania shows on all
lines directly operated. an increase of ST.
1855 500 in gross and of SS19OOo in net Il he
figures of the controlled lines separately
operated being excluded), and for the half
year to June 30 the noteworthy gains of
$11, 370,500 in gross and of S4,621 900 in net
The latest reports of current earnings
coming to hand also show better results
than have been recently expected, and in
dictate continued large movement of gen
eral merchandise traffic. Regarding the
Atchison railroad statements have been pub
lished, quoting Atchison insiders as saving
that the company would earn this year
$50 OO0, 900 in gross, and that it could be
operated for 30 per cent of its gross earn
ings. which, If it proves true. will permit
an per cent dividend to the stockholders
In Excess of Dividends.
Other prominent roads are earning large
ly in excess of dividends paid, and their
preferred and common stocks might be in
stanced. Chief among these are the Bal
timore and Ohio, paying 4 per cent on It's
common stock, and showing more than
twice that amount earned. while some say
the company will earn not only as much
next year as it does now, but more in fu-
ture. The soft coal carriers also are en-
joying an exceptional degree of prosperity
as result of higher prices for bituminous
coal, the large home demand and increas-
ing foreign consumption.
The exhibits of Earnings being made by
the railroads of the United States are a
sufficient answer to any question of over
capitalization. When millions are put back
into the properties for betterments and
equipment, regular dividends paid to stock
ture improvements out of'earnings annually.
it may be fairly concluded that the original
water in the stocks of such roads has been
completely evaporated, and ample and in
creasing value substituted.