The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-02-11
BALTIMORE & OHIO FINANCES.
Facts Gathered From Application 1
hist New Comm rlr, SHnnIr

Facts Gathered From Application 10
List New Common stock.
From the recent application to list the
new Baltimore & Ohio common stock
some interesting facts can be gathered.
line company has issued $22, 537 200 new
common stock, the proceeds Of which are
to be used to purchase the stock of COM
Panies controlling a total mileage of l.24S.
There also have been sold for this and
pther purposes $4,000, 900 4 per cent Pitts
burg, Lake Erie & West Virginia system
bonds. 1t may be of interest to note the
position of the company after this opera
tion.
At the date of June 50 last the COM
pany had outstanding funded debt as fol-
lows:
Baltimore & Ohio prior general
men ponds ........................S13 6, OO0 DOC
southw estern division bonds. 42,G50,GSO
P1ttsburg Junction and M di-
r1t HeIoI pGAIos '''.''''''''....... 61754S0
Total June 80, 1901. .y95. al ,4SO
ADD convertible debts, now out
standing .........,.... .,....... 6.5iI 0U0
ADD new per cent bonds re-
Gently sold Observation-Disclosures. 10000 900
Total at present ............. S221, 9S2, 4S0
TO the total of $221, 1882 4SO must be added
SoObs AOT OUTSTANDING DEBT OF roads
now acquired making a total funded
debt on the system, including the new
mileage controlled by stocks acquired, OF
about $260, $50 1872, with annual interest
charges or about $9,500,000 thereon. This
is the debt on about 4,463 miles of road,
Baltimore 81 Ohio owns $44, 255, ESQ out of a
total outstanding stock capital of $50. 1874
oSo on the ,2+5 miles now taken In. The
capltaI stock issued on the whole rrop-
erty tS:
Preferred stock .........,., $50 opt 600
Common stock ..................... Il, ESQ, 200
Minority stock outstanding 49,. S,239346
Total stock outstanding -. .sl.3, 1872 54e
Prorating this capital and bonded debt
over 446S miles of road gives USl
Bonded debt, per mile. SIS 425
Preferred stock, per mile. 10 444
common STOCK, per mile. .,............ 17028
Total, excluding minority stock. SIS, 1877
The companys interest charges now are
apparently $9,5O0,000 annually. Adding for
taxes $1,200,000. and rentals S3OOOOO an
nually, gives 81, 900, 600 per annum falling
against earning. To meet this are the
earnings from the system as constituted
June 30 last, viz, 1920 miles, plus the
earnings from operation of the 243 miles
whose stocks have been acquired by the
Baltimore & Ohio.
Last year the Baltimore & Ohio earned
ures, and had $S50,O00 ''other income
making a total gross income available for
hXed charges of $3.50 900. For the first
six months of the current fiscal year the
net earnings have increased S2,I5O.OOO,
Reckoning 81, 100000 net increase for the
last half of the fiscal year gives a total
estimated increase for the year of $780,
GOO. This points to total gross income
OF 900 from the Baltimore & Ohio
system proper for 1912, and would mean
a surplus OF some 100000 over all fixed
charges.
1t may be reckoned that purchases Of
stock will provide a gross income from
operations over expenses of approximate
ly from $2,750.000 to $3000,OOO or, for SAT-
ety'S sake, say $2,500O00. This makes the
probable surplus over ali annual charges
of the Baltimore & Ohio system in 1912
about 81, SOC, 900. Deducting 81, 400 600 for
preferred dividends, leaves $9,1OO,OOO for
the common stock, which on SIS, 900, 900, Or
whereabouts, is II per cent. This estimate
Us probably conservative as Indicating the
present earning capacity Of the property
now including 4,463 miles Of road.