The Savannah morning news., 1902-08-28
INCREASE IN EXPENSES.
On the Central Due TO Befterments
Charged to This Account.

Charged to This Account.
President John M. Egan of the Cen
trail Railway, who returned yesterday
morning from an inspection trip over
the line, was asked by a representa-
tive of the Morning News why the
annual statement of the company, is
sued last week and published. in part,
by the Morning. News, shows an adj
vance In the operating expenses dur
ing the last four years. In 1898 the
operating expenses were g. 80 per cent.
of the gross earnings, while for the
last fiscal year they were 71.36 per
cent. There has been a gradual in
crease since 1898 In the percentage Of
the gross earnings that has gone for
operating expenses.
This increase" said President Egan,
lis due to the fact that the Central
Railway has no separate account to
which betterments are charged. I'm
provements are charged to operating
expenses. and the indicated increase
in operating expenses is due to the
great improvements that have been
made year after year. Were better
ments and improvements charged to
some other account, this increase in
operating expenses would not be
shown"
The report of the president
shows the manner in which the
betterments have been made There
have been 200 freight cars construct
ed, at cost of about 1892 900: five To-
comOtives have been bought for about
$4,000; three sleepers have been
bought for about $4,000; there have
been sidetracks built for industries
and sidetracks built here and there
to facilitate service: new shop tools
have been secured; roadbed has been
ballasted; new rails have been pur-
chased and many other improvements
have been made: all being charged to
operating expenses. The freshets of
February and March cost the company
about 100000 which had to be charg-
ed to this account, besides entailing a
loss through business that went by
other routes while the line was Grip
Pied.
Material and supplies have cost more
than was paid some time ago. For in
stance, the same quantity of lumber
was used by the Central during the
last fiscal year as in 1898, yet the cost
was $4,000 more. Crossties, too, cost
81 per cent. more than in 1898. Rails
that, in 1885, were laid down at Sa-
vannah for $21.50. last year cost the
company $32.25 a ton. In 1898 the Cen
trail built 200 cars at a cost of about
$4,000. Last year the same number of
cars, though of greater capacity, cost
about S132,000.
Mr.. Egan was asked if 1t was not
true that, as the roadway and equip
ment of the company is improved, the
operating expenses will be reduced. He
answered in the affirmative, saying
that such would be the case when no
further betterments were charged
against the operating account 1t is
cheaper to operate a road that is in ex-
cellent condition than to operate one
that is run down and is in need of bet
terments.
A few days ago a communication
was addressed to the Morning News,
desiring to ascertain to what cause the
net increase of $105. 1880 in the inter
est on the funded debt of the company
was due. President Egan was asked
about this, and his reply was that it
was due to the Central having assumed
the securities of the Chattanooga,
Rome and Southern Railroad.