The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-07-14
RAILROAD NEWS.
Rock Island Policy Gives Enor-
nous Treasury Resources.
Weakens Road in Reference to
Mileage and Earnings.
STRENGTHEN FINANCES
Move Was to Put Road on Sound
Financial Basis.
Advance in Stock in New York
STRENGTHEN FINANCES
Advance in Stock in New York
Causes Comment.


roads position as to the proportion OF
capital to mileage and earnings, 1t has
given the company enormous treasury
resources, says the Chicago Evening
Post March 81, as shown in the COM
pany's report, the treasury resources
were over s1o,ooo. eco larger than March
g. 1901
with the sale of SIS. ooo. 900 stock at
par, the company will have gained alto
gether about S25, 600. 900 in treasury re-
sources, which will then amount to
about So, coo, goo, besides a probable 81
100000 in the Choctaw treasury This
will give Rock Island a stronger treas
ury position than that OF any other
granger, except, perhaps, St Paul, and
will enable the company to go ahead
with considerable extension work, (which
will now be in the direction OF ST.
Louis
THE purchase of the Choctaw, as we'll
as the increase in capital stock. was
responsible for Rock Islands increase
in nominal capital each mile The
shares (par value $500 We're taken over
at SO for the common and SO for the
preferred, total cost of s23. $4,000 for
stock whose par was 1927, 500. The to-
tai cost of the Choetaw, including the
assumption of the Choetaw bonds, was
$50, 400 a mile, or $4,000 mile more
than Choctaws nominal capitalize ton
Last year Choctaw's surplus after
charges was 81, Al, 625, and for five
years the average surplus was $500, 027.
be $960,000 a year Choctaw's gross earn
ings a mile last year were as large as
Rock Islands, and its charges a mile
were less; but the previous year earn
| ings a mile were much less than Rock
| Islands
Summing up the results of Rock Is
| lands last year, it may be said that the
! company by its capital expansion has
| weakened it's position with reference to
mileage and earnings. but has greatly
| strengthened its treasury resources,
| heretofore relatively weak On account
| of the Choctaw purchase the strength
| of the treasury resources Will not offset
1 the weakness in capitalization; but the
| increase in resources is probably what
| the company needed most. 1t is now IN
| position aggressively to extend its
1 lines TO the proportion OF those OF other
| grangers-
| Part of its increased resources has
| been allotted TO pay for the Burlington.
| Cedar Rapids & Northern and the Rock
| Island & Peoria on the basis of share for
| share. The purchase of the Cedar Rapids
which has s7,150,o00 apital stock and
| SIG, 35S, 600 bonds outstanding on over T.
| 200 miles. would considerably reduce
| Rock Islands nominal capital a mile,
| although of course, its treasury re-
1 sources would be correspondingly re-
I duced The total capital mile after
| the purchase of these two roads would
| eb about $34, 600"
New York. July 14-Rock Island
scored a nsational advance on the
stock exchange Saturday, and all sorts
| of rumOrS were afOat concerning the
| property and given as reasons for the
| advance from 1922 to 100. After touch
| ing the latter figure, the stock reacted
| to 1S8, closing with a net advance OF
ga.
One of the rurnors current, but which
! could not be traced to an authoritative
source, was that the Rock Island con-
templated the purchase of steamship
| S>,%s hnfr, 10 w q =
the Mallory line, and planned reaching
| Galveston through it.
| Another report current as accounting
for the strength of the stock was that
Rock Island is interested with Illinois
! Central in the acquisition of Chicago
and eastern Illinois, and that the latter
| would be operated by the two jointly
| In well-informed quarters the advance
! was said to be due to manipulation by
the western clique, which controls the
| property and which is in a position to
| mark it up or down at will There is,
and for long time has been, no bona
| ide public buying of the stock, and the
| remarkable manipulation witnessed
since the control of the property changed
hands has succeeded only in mystifyiug
at all fiattering to the manipulators-
Missouri Pacific also shared in the adj
| vance and was extremely active, nearly
| 120. 900 shares being traded in as against
| IL. 900 Rock Island The advance in
Missouri Pacific was said to be due to
the improvement in the condition OF
corn in the states which contribute to
the road tonnage