The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-08-20
Gross earnings ....$11,5 $40, S15 $40, 929 $50
Expenses and taxes 8,144,219 S,120, S61

| Net earnings s...S o,o40,0Io Z,0US, l9O
j Gross earnings increased $650,764. Ex-
penses and taxes increased $S,S5S. and
net earnings increased $626,906 over the
preceding year.
For 1901 the surplus for charges was
| 1929, $685. which was equal to 1.6 per
| cent. on the preferred stock; adding to
| this surplus the increase as shown for
the year just passed gives a surplus of
| $956,565 which is equal to AS per cent.
on the preferred stock.
| The amount of increase in surplus is
| just about equal to the amount of in
crease in gross earnings, so the manage
ment succeeded in handling a larger traf-
| fic without increasing expenses over the
preceding year. AS a general PROPOSE
| ton, this would be impossible and still
maintain the integrity of the plant.
| 1t is a fact which cannot be got away
| from that the cost of handling traffic
| is or should be exactly proportionate to
| the amount of traffic But this rule, like
all other rules, has exceptions, or per-
| haps is capable of explanation. To prove
that it should cost more to have a GER
tain additional amount of traffic, it must
first be proved that the smaller amount
was handled with economy. The present
Seaboard Air Line system is composed of
number of comparatively short lines,
which, prior to the consolidation, served
only local territory, and the properties
were operated only with a view of hand
ling such local traffic. After consolda-
ton conditions were changed, through
service was established and through
business developed; traffic originating,
for instance on a Southern division be-
came, after connecting links were COM
pleted and in operation, through traffic
OF Northern division. The management
was enabled to load trains heavier and
so get better service out of the locomo-
tives.
AS a measure of comparative efficiency
of the operations of one property from.
year to year, it is a good guide, but ever
where it must be used with a careful.
knowledge and consideration of changed
conditions.
The Seaboard system has established
itself and has demonstrated that it's
financial organization was made on a
sound basis and with a careful considera-
ton on the traffic which would offer. The
proposed extension to Birmingham will
furnish it with an entirely new class of
traffic and will add to it's general trafaci
strength from strategic standpoint as
well as increase the earnings of the line.
Richmond Dispatch.
The Atlantic Coast Line has begun
laying double track between Richmond
and Petersburg.
special from New York says: "John
SHELTON Williams, president of the Sea-
board Air Line, denies the report that
his road is contemplating starting an in
dependent steamship line in competition
with the Old Dominion and Savannah
steamship lines to run between New York.
Savannah, and Norfolk.
He added that the management of the
company had not even thought of start
ing any steamship line whatever"
Houston, Texas, Aug. 1.-THE fiercest
rate war ever known in this State was
waged here last night. Tickets to Chi
cago, st. Louis and Kansas City were
practically given away for period of
four hours.
The fight was among ticket scalpers
and was the outgrowth of the merry war
that several Southern roads have waged
for Northern business during the last
week. The fight started by one broker
the following schedule: Chi
cage, SIS; st. Louis, Sc; Kansas City, So.
Rival brokers shortly cut prices in two.