The daily morning journal and courier., 1902-07-08

oCN"GEA aAC NEnbGE cL SOuEn"GhkGEA and the Cripple Creek Short Line Harmony Restored and Return of Prosperity.
 Kimberly, Root & Day received yes- terday afternoon the following dispatch relative to railroad matters in which many New Haven people are interested:
 The New York Commercial to-day has. an article to the effect that c. A. Parker will be the arbiter to settle the Denver Southwestern and Cripple Creek rates. He is the chairman of the Colo rado Passenger association, and will have full power as to a division of traffic and his decision will be final. The two roads will be operated in har- nony and rates restored immediately.
 T. S. Manson & Co.
 On the same subject giving details of interest is the following received by the same New Haven firm:
 For six months the Denver and Southwestern and the so-called short line operating roads between Cripple Creek and Colorado Springs, have been engaged in one of the most noteworthy rate wars in the history of American railroading. Passenger rates between Cripple Creek and Colorado Springs have been cut from $2.75 to 25c, and merchandise has been carried as low as 5 cents per cwt. and radical reductions made in rates for the transportation of ore. Previous to the rate war the Dem yer and Southwestern was showing earnings of IA per cent. upon it's com mon stock, but when the fight was flerc- est the company was not earning its dividends, but fortunately it was strong in treasury assets and in a position to meet its fixed charges for some time to come. Dividends of and per cent. respectfully were paid upon the prefer red and common stock up to February of this year but payment of the quar- terly dividend due in May was passed on account of the rate war.
 In the midst of the company's pros- perity the bonds sold at par, the pre- ferred stock at 80 and the common stock at S2. During the rate war the bonds sold as low as S41s and the nomi- nal quotations for the stock were in the 30s.
 The bonds are now quoted at 91, the preferred stock at 55@60, and the com- mon stock 45@60.
 We have obtained the following off, ficial statement as to the basis of set clement of the rate war:
 "The rate war between Denver and Southwestern and the Cripple Creek Short Line was ended forever by the rate schedule which went into effect June 30 at 12 o'clock at night. An arbi- trator arranged the schedule and the roads will hereafter run on the basis of a close pool and in perfect harmony. The basis of settlement was practically a return to the old schedule, some items being a little higher and some little loWer.'';,
 It is supposed that the arbitrator ar rived at a settlement by taking the act ual figures of operation of both roads and allowing each road the same pro- portion of business it has been handling the balance of earnings to be pooled and later divided.
 A return to anything like the old schedule of rates gives a very excellent prospect for substantial returns from the operation of the road and should re- suit in the early resumption of divi- dends upon the stocks of the Denver and Southwestern, as that road natural ly has the bulk of the Cripple Creek ore business.
 The Denver and Southwestern was organized in the fall of 1899 to operate a line of railroad between Cripple Creek and Colorado Springs, with eighty three miles of main track and forty seven miles of spurs and sidings. It also operated general stores, reduction works, etc. It had S5.500,00 of bonds, $2,000,0 900 per cent. preferred stock and $3,000000 common stock. The company was a large money earner from the start and in addition to paying substan- tial dividends it created a substantial surplus. It has expended $2s0,OO0 since its organization in the building of new road, all of which has been charged to operating expenses. It has retired through it's sinking fund operations about s275.0000 of it's bonds and purchas- ed '$t00,000 additional bonds for it's treasury, and in addition retired $S0,0OO of the Midland terminal bonds (the only underlying lien on the property), leav- ing the amount of this underlying lien at present less than S50000
 Tn, addition the company paid out of its earnings about $30O,00O construction certificates and equipment notes, which were liens on the equipment of the property. Thus, within the two and half years of operation, the company has retired $75o,0OO of its obligations, in cluding bonds and equipment notes and has expended about $260,0O0 from earn ings upon its property.
 The securities of the road are largely held in New England. All through the rate war stockholders have refrained from dsposing of their securities, be- lieving that it was only a question of time when the dispute would be settled and the road again enter upon period of great prosperity"