New-York tribune., 1901-06-23
financial
The Financial World.

trouble In the money market; hence the DISPOSE
ton of the larger operators TO go SLOW Yester-
days bank statement considered favorable.
ell things considered and next weeks will prob
ably be better.
Reports from the west. from the traffic men,
on the crops and movement of general traffic.
are of the most satisfactory character. and the
feeling among the big men in finance is steadily
bullish
1t will be of interest to every to note the
basis upon which rests the present prices OF GER
tain leading railroad stocks. Illusions about in
hated values will be largely dispelled. The fig
ures presented below condensed from care
fully prepared tabular statements, too elaborate
to be presented here.
We take for comparisor. the Burlington. the
St. Paul. the Rock Island. and the Illinois Cen
trail These roads are selected because OF the
great interest attaching TO the requirement of
the Burlington by the Northern Pacific. terms
which practically a guarantee of first
| charges and per cent its stock.
1t is assumed for purposes of this comparison.
that the dividend is per cent. and the ratio OF
working expenses and taxes for each road is
that of the BurlingtOn-66 per cent; for there is
no reason. other than temporary policy or man
agement. for differences of. ratios.
As a matter Of fact the ratios of each while
varying a little year by year. have averaged for
| the past five fiscal years follows: Burlington
| G6 per cent; st. Paul 63 per cent; Rock Island.
IS per cent: Illinois Central. 50 per cent.
To reach a true presentation also. show
what each road doing five years ago. and
what it is doing to-day; and by that will be seen
| the great growth of earnings which has taken
place in the five year period:
BURLINGTON.-Its gross earnings for 1896
were $50. 100000 At 66 per cent ratio. net would
have equaIled. $11.46OOO0. The first charges
were S9.1OO.O0o; and s per cent on it's then out
standing stock would call for S65J0OOO Total,
S15.65O.OOO.
For 1901 Burlington's gross earnings will ap-
proximate $40. 100000. Net. at 66 per cent.
$16.900.O0O First charges will reach $S.2O0OOO:
and per cent on it's $9S5OOO00 of stock.
81. $50 900 Total S16.GSOOO0.
1t should be noted. however that first charges
include $1OOOOOO paid to sinking funds. and
that within a couple Of years reduction Of
81 100000 in first charges will be effected by re-
funding maturing bonds.
The above figures show that the, &c per cent
ratio basis. the Burlington is practically earning
10 per cert on its stock outstanding at the be-
ginning of this fiscal year.
ST. PAUL.-Its gross earnings for 1896 were
$50. 100000 Net. at 66 per cent. would have
been S11 100000 First charges and per cent
on preferred stock. S9,4OO.OOO; and per cent
$l30SOOO0
For 1901. St Paul's gross will approximate
$40. 100000 Net. at 66 per cent. $14.52O.OOO.
First charges and per cent on preferred stock.
50. 100000. and per cent on it's S4IO 10000 COM
mon 81. 100000 Total S13.26O.OOO.
On the 66 per cent ratio. ST Paul is earning
10 per cent on its common stock outstanding at
the beginning OF this fiscal year.
ROCK ISLAND.-Its gross earnings for 1896
were S1I.400OOO. Net. at 66 per cent. would
have been S59OO.OOO. First charges S4.O1OOOO;
ard per cert on its stock. S4.OO0.0O0. Total
$S.OTOO0O
For 1901. Rock Islands gross reported at
S25. 100000 Net. at 66 per cent. would be
S. $4,000. First charges. $31OOOOO: and per
cent on 900 stock outstanding. 100000.
Total SI.1OOOOO.
on the ratio OF 66 per cent. Rock Island is
earning IL per its stock outstanding at
the beginning Of this fiscal year.
ILLINOIS CENTRAL-yts gross for 1896 was
S25.5OOOOO. Net. at &c per cent. $S67OOOO. First
charges. S4G5O.O00; and Per cent on it's stock.
$+.20oOoO. Total. $S.S50.OoO.
For 1901 Illinois CentraTs gross viii approxi-
mate S43,0o0OoO- Net. at 66 per cent. S1462O-
600 First charges. S5OOOOOO; and S per cent
on its S6OOOOOOO stock outstanding. 81 SOOOOO
Total. 50. 100000.
On this basis. Illinois Central is earning IS per
cent on it's stock outstanding at the beginning
Of this fiscal year
GENERAL REMARKS.-Sinoe the close OF lie
fiscal year 1900. and recently. the Burlir~.ons
stock has been increased S1OG00OO. St. PauIs
81. 600 900. Illinois CentraTs S6.O000O0 These
increases will not materially affect dividend re-
quirements before the fiscal year 1902
The figures show that the same basis OF
comparison TO expenses. the Illinois Central
came much nearer 10 earning per cent on it's
stock in 1896 than the other roads named. and
that its dividend earning capacity is now far
superior Computed the Illinois Centrars
two years. comparative results would be the
same
Summing UP, we may say that the figures pre-
sent most satisfactory state of all the roads.
and explain the advances in the prices of their
securities which have been in progress for the
past two years
That the Illinois Central should come out on
the top of the heap, TO speak. is surprise
10 those who have kept track Of the company's
affairs; but IT will be surprise 10 the average
reader. because it's stock has been rather OBJ
scure in the market and has had no such at
tention directed 10 1t have the stocks of the
other roads named
IL may be assumed. however that as knowl-
edge of the real condition Of the property be-
comes wider. the stock will become more active
and will go at least as high as any OF the others.
CUTHBERT MILLS.