Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1902-09-17
AMERICAN RAILWAYS
THE LONDON srAr1sr on rHr
soUTHERN,s yor1NG TRUST.
FINE CONDITION OF LINES.
The Paper Think. the Road. Of the
United state. were Never in SUCK
Excellent Shape ana That The.e
Conditions. win Continue.
FINE CONDITION. OF LINES.

- Z ~
LONDON. September -tspeciaLpIn
commenting on tho suggestion Of the vot-
ing trustees Of the Southern Railway
Company to extend agreement for Ave
years. the statist says to-day:
The continuance of the trust would. of
course. mean the continuance of the pres
ent management. Under Mr.. Spencer the
road has been greatly improved. both
financially and physically. Given con-
tinuance of the present management and
maintenance OF rates, the property Will
become increasingly valuable
Referring to the beneficial results OBJ
tained- by the mana cement OF voting
trusts in the case of several large rail-
road systems, the Statist points out that
much of the success has been due TO the
policy OF bankers vino have been voting
trustees in most cases not to build new
railroads that would intensity competf-
tion. Commenting in further detail on
this point. the English view IS:
Conservative. bankers policy has been
very largely responsible for the unex-
ampled prosperity which the railways OF
the United States now enjoy. Never has
their position been so sound. Indeed. 1t
may be stated that In the course OF Ave
or six years they have passed from
position of comparative bankruptcy into
one of very great wealth, which Is so
well founded that even the recurrence OF
q severe period OF crisis would not have
any appreciahle effect upon their financial
position. The railways of the United
States are now earning profits equal to
very large dividends. indeed. upon their
stocks. but most of them are distributing
only one half or one third OF the profits
available for dividends on their ordinary
stocks In the event of the contraction
of trade they could witness very serious
loss, both in gross and net earnings. be-
fore it would be necessary to reduce their
dividends. These railways are now IN
such excellent physical condition that I'M
provement outlays can be greatly re-
duced. and. If necessary. discontinued for
a considerable period.
"One thing only Is needed to maintain
the railways of the United States in
position of great overwhelmingly I'M
1erstanding with ncighhoring lines. by
which competitors can be kept within
reasonable limits. and the effect upon
earnings of any temporary decline in
trade may not be accentuated by seri-
Gus reduction in freight rates a a moment
that traffic is relatively light. AS con-
sentative interests are keenly alive to
the necessity for maintaining friendly
relations. there Is a fairly good prospect
that rates will be maintained to much
greater extent than in the past At this
moment there is a movement among the
southern lines, by which the friendly rela-
tions of the past will be made permanent.
In the east of the United States, prscti-
cally the whole of the lines are controlled
by men who appreciate tAe Importance of
maintaining the railways In a condition
of prosperity. In the west also a similar
condition of affairs exists. neighborins
lines being controlled by men whose inter-
est it is to maintain friendly relations
and to avoid undue competition
President Spencer Is now in London