The Washington times., 1901-06-30

existing lines than by new construction.
The only long lines of Importance now
building in this country are in the South
west and have the securing of connec-
tion with Mexico as their object. These
are the extensions of the Rock island 70
FL Paso and of the St Louis and San
Francisco in Texas The latter has built
about seventy miles on a separate extern
sion through Oklahoma. which undertake es
to hold newly developed territory, ana
bears more relation to an older class OF
construction, though this line was per
fectly legitimate one.
Texas, at the present time. as once be-
fore. in the railway construction boom,
holds first place among The States, in the
amount of new railroad added, but the
total miles built is 245, as compared with
the thousands OF miles recorded in the
late eighties and early in the nineties.
Outside Of the new railroad lines in Texas
and Oklahoma, where the activity IS due
TO plans 10 complete new through llnes,
and TO auticipatiVe building, TO hold the
prospective traffic of new country, the
railroad construction now going on Is to
be classed as branch line work. or else
consists Of lines carried out as part Of
the general Improvement policy Of older
and strong companies which has been a
distinct feature of the railroad work Of
the present period Of rising traffic and
earnings, as expansion Of mileage was OF
earlier periods.
! Thus. if the Southern Pacific. the North
western, the st. Paul, and other Western
companies are now 10 be credited with a
| larger share of the new work under way
| than most companies, it is because they
are building many short branches or are
improving their routes between impor-
! taut cities The Northwestern and the
/ st. Paul have been active in parts of
Iowa and southern Minnesota, in COM
| petitive building, but where such work
amounts only to a few hundred miles a
year, and is divided among numerous
branches. little significance need be at
tached to 1t.
Rut these and other companies are un-
- f-r tfaaf &c "a
them on the scale now planned. Thus the
issue Of new stock by the st. Paul and the
Rock Island is available not only for con-
struction 20 secure new traffic, but in each
case is 10 provide funds also for connec-
: tions which will shorten their routes be-
! tween great cities. Both companies pro-
| pose extensive cut-offs. involving the
building Of fifty or more miles OF new line
each TO shorten the distance by their lines
| between Chicago and Kansas City. The
Southern Pacific proposes a good deal OF
work Of a similar nature, like the new
| line west Of ogden, across Salt Lake. All
| this is practically a new development in
the policies CT the Western railroads. and
follows the great growth Of traffic move
ment over their lines.
This construction work has a direct
bearing, of course. on railroad earnings
in several ways. In the first place. il re-
lieves reports Of revenue of the suspicion,
often too well founded in the eighties,
that the accounts are Swelled by credits
for carrying construction material. This
practice long ago fell into disuse, but
with railroad building at its present vol
ume, IL would he of inconsequential effect
on railroad earnings in any event. With
rebates also practically abolished, cur
rent reports of revenues represent actual
receipts IN hand as at no previous period.
Nor are the increases in income reported
affected except in few cases by any
large additions to the operated mileage of
! individual companies.
Thus, of the companies issuing monthly
statements this week. the Atchison is the
only one with material addition 10 op-
Grated road, but its increase is less than
8 hundred miles. The Northern Pacific
the Illinois Central, are reporting an ad-
| dttional mileage, but in their cases this is
due TO the absorption of other roads. not
to new mileage. The accounts of the ST
Paul, the Chesapeake and Ohio, the Geor-
gia Central. the St. Louis and San Fran
cisco, the Seaboard, the Canadian Pacific
and other companies are affected by TAX
ing new lines into their accounts, but the
difference is not enough to seriously up
set comparisons.
Altogether IL will be seen that railway
extension. though showing signs of re-
newed activity, from the low totals of re-
cent years, is adding moderately TO pres
ent mileage. It's character is in marked
contrast with the period OF ten years ago,
with it's projection of long lines across
Is being created through these exten-
sions. Earnings are not being inflated by
the construction work, and while compare
sons of earnings must allow for Increased
mileage operated with a number of COM
panieS the aggregate gains are not modi-
fed to any extent by the factor of addi-
tionai lines figuring in the reports.