The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-11-28
RAILROAD NEWS.
Rock Island Finances Still At
tract Attention.
Figures to Show Effect of Recent
Expansion.
BONDS ARE ALL RIGHT.
Claimed That New Securities
Are Safe Investment.
Nearly S9.OOO.OOO Surplus
BONDS ARE ALL RIGHT.
Nearly S9,OOO,OOO Surplus
Available For Interest.

Affairs of the Rock Island road con-
etnue to receive attention. ana the re-
suits of reorganization are sun eager >
debated A leading banking house Oh
New York citv has had a circular pre-
pared on the present condition and ~
ture prospects of that property speak
ing of the bond issue, il says:
These bonds are an issue OF the III,
cago. Rock Island < Pacific Railroad
Company Of Iowa. formed this year 10
lease and operate the old Chicago Rock
Island and Pacific railway company the
Issues Of the new bonds being limited
to the par of that company's stock as
deposited in trust for these bonds. Ihey
thus practically represent the old ROCK
Island railway stock, which mas not peer
sold a t less than par since October. 1870.
The bonds are followed by Hl2O,VoV'QVo
authorized capital stock of the Rock Is
land Company of New jersey, OF Whlch
So. 500 600 preferred and S75,00O,O 600 COM
monstock is issued or issuable under the
Rock Island readjustment plan. The IN
come of the New Jersey company must
apparently come altogether from the old
Chicago Rock Island & Pacific Railway
Company of Illinois, as no addltlOnai
property seems to have been acquired to
the present time by the successor com
Ranies
THE Rock Island railway system, as
consolidated and controlled by the can
ital stock deposited in trust for these
bonds consists of 03S miles of COM
pleted railway, with 1,024 miles addi-
fiOnal under construction. The total
present bonded debt on the completed
lines is about $4,000 a mile and IN
Guiding the new S75.000000 stock collat-
eral trust bonds, $29. $50 a mile. while OIL
the completed system the funded debt
including the stock collateral bonds, will
be about S25,S70 a mile Of road.
ITO meet the accruing charges on the
$4,000, 900 authorized stock, collateral
bonds and dividends on the outstand-
ing shares of the Rock Island Company
of New Jersey, the old Chicago, Rock
Island & Pacific railway company re-
ported surplus income of $7,220.942 from
the operation of 1910 miles Of road in
the fiscal year to April l. 1902 This
would meet the interest charges on the
new 4 per cent. bonds and 4 per cent. on
the new Rock Island company preferred
stock, and leave d balance equal to 2.S2
per cent. on the new common stock as
shown below:
Surplus of the Chicago. Rock Is
land & Pacific railway com
pany in 1902, fiscai yea. ~. 81, 22O, s4s
-Four per cent on 100000 c.
r. I. & p. railroad stock col
lateral bonds Observation-Disclosures. 5000, 900
-Four per cent. on $52, 500 900 new
preferred stock tissue of Rock
island Co. of n J)-........... 100000
Apparent surplus for new COM
mon stock on basis of 1902 re-
port ...-.---- .-.........-...... 2,120, 943
Equals on $75 900 900 net COM
Thus the old Rock Island Railway
company of Illinois Operating in 1902
about 1910 miles of road reported a
surplus for the new 4 per cent bonds of
nearly 9 60 per cent. Since the close of
that fiscal year the company has merged
by exchange of stock the Burlington.
Cedar Rapids & Northern of about 1857
miles and the Rock Island e Peoria Of
100 miles, and has purchased the stock
of the Choctaw, Oklahoma & Gulf rail
way Of about 1885 miles of completed
road. These companies in their last re-
specttve fiscal years reported a total
available surplus for interest on the new
Rock Island 4 per cent bonds of IS, 739,-
GOO or equal to about II % per cent on
the total issue.
These figures show available surplus
income for 1901 practically nearly three
times the interest on the new stock col
lateral bonds Since the periods cover
ed, gross and net earnings have ma
terially increased The net available in
come reported earned for these bonds
In July and August last, if maintained
throughout the twelve months. would
indicate that the income now being
earned available for interest on these
bonds is above $130000OO for the year,