The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-10-21
LITTLE TO CRITICIZE
Experts Subject the Last Burlington
I Annual Repoyk to the Closest
Scrutiny. 81,
The Road 3fMakes Coco" Despite the
FACE That It's Territory
! w. 4 Sustains Losses.

NUN local interest attaches to the an
nuaL report of the Burlington road issued
iast week, covering the operations for the
ivy Iva months ending June 80, 1902. Ev-
e1YJ expert in the country has probed into
y lis report and it has had to stand crucial
: ,nalysis. Aside from the interest that
! the finacial world would naturally take in
| the report Of a great system embracing
| 1888 miles, there is the additional interest
| arising from the fact that the Burlington
| is the greatest corn carrying road in the
country, and the one that stood to suffer
| most from the corn crop failure of last
year.. Locally the interest comes from the
| fact that the Burlington Is one of the mer-
get triplets. In it's bearing upon pros
pective earnings of Northern Securities
company the report strikes the local
crowd, as we'll as eastern fnanciers, as
quite too important to allow to pass with
the ordinary inspection. 1t has been hard
to find anything wrong with 1t.
In its, f1nality the report shows that the
road earned net $1s,112,37o compared with
$l6,9sS, 081 in the previous year. This pro-
vides for the payment of per cent on the
Northern Pacihc-Great Northern joint
collateral bonds that were issued to take
up Burlington stock, and leaves a surplus
of $1,250.000. Or, had there been no COM
bfne the Burlington would have earned
I 8 per cent On it's stock and have left over
a balance Of the amount mentioned.
In view Of the unfavorable conditions
under which the road labored, the show
ing suggested the possibility Of some cur
tatlment in the expenditures for the MAIN
tenance account, and since it was known
that q. favorable report was especially de-
sirable for the effect upon Northern Sc
cur1t1es, 1t had been assumed that the
mana cement would not hesitate to cut
appropriations for maintenance to effect
this. But no evidence Of any such policy
Is fliscoverable. The company did spend
leS,s money on the roadway and for gen.
e1 al road improvements than in the previ-
Gus year, but put more money into equip
'lnent so that the total expenditure for
maintenance Of way and equipment was
larger. showing total of SIS, 217, 299 COM
pared with $14,77O,9O1 in 10000. The
road appears to have made more money
through the general activity and pros
perity, Of the west despite the existence Of
adverse conditions along it's own lines
Having done so well with poor crops the
question is what will the showing be with
heavy crops
Local persons who have been arguing
all along that Northern Securities stock
is due to sell higher ultimately on its le
ultimate earning power, find their posi-
ton strengthened by the Burlington re-
port.
The Hill method of subordinating every
thing else to the increasing Of the train ton
mage and the decreasing Of the train mile
age, appears to have been the policy Of
the operating department. With a large
increase in the number Of tons Of freight
moved there was a great decrease in the
train mileage. This accounts for the fact
that it actually cost less to move this
heavier tonnage than to move the smaller
volume Of freight in the previous year.