The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-05
In MONON STOCK
FINANCIAL PAPERS THINK 1T DUE
TO THE ROADS GOOD EARNINGS.
The l., ID. q w. Extensions Will De
Opened for Traffic on May THE
c. * n. w. and Pools.

Both the New York Financier and the
New York Investor. in their current issues
devote considerable space to the marked
activity Of stock of the Monon road and
reasons therefor The Financier says:
Considerable comment has been made con-
corning the ACQUISITION of the Monon by
connecting systems. but it is believed that
the advance in the stock of the road has
been promoted TO large extent by the
creditable showing made in the roads earn
ing ability. For several years the operating
expenses of the Monon have been hber-
ally charged for maintenance. Under its
present management wooden bridges and
culverts have been supplanted by steel and
stone ones. and light rails have been re-
placed by eighty-tive to ninety-pound rails.
The present management has been in con-
troll of this representative property four
years, and in that time gross earnings
have increased SO per cent. and maintenance
charges 100 per cent At the same time the
conducting Of transportation and general
expenses were so managed that the total
operating expenses have increased only
about Is per cent. On Jan. 1, 1902, the COM
mon stock outstanding amounted to $780,
preferred stock is limited to noncumulative
dividends of per cent. To pay this divi-
dend requires about s25O,OOO and for the last
two years the company has earned u per
cent. on it's preferred stock. The litigation
growing out OF the lease of the Beatty
Vile road by the former management has
caused the present one to oppose any divi-
dend payment other than the per cent.
on the preferred While the matter was
being dragged through the courts the sur
plus increased from a deficit of $75.O62 in
1896 to a surplus of $652, 775, after the pre-
ferred dividend payment and liberal main
tenance allowances were charged. For a
road operating only 535 miles, that is a
handsome record, considering the perma-
nent improvements that have been made.
The surplus for the year ending June 80.
1901 was equal to 4.3 per cent earned on
the common stock after providing for all
charges. The number of tons carried by all
railroads in the country, according to the
Interstate-commerce Commission report in
creased from 1890 to 1900 20 per cent. The
number of tons carried by the Monon in
creased ~ per cent. Last year the num-
Der of tons per train for all roads was
270.S5, while the Monon's average was
291 "a"
The Investor says: 1.-The Chicago. Indian
apolis & Louisville road. or, as it is more
Familiarity known. the Monon, has of late
attracted considerable attention in Wall
street through the marked activity in its
stock. The great advance in the common
Is accounted for by the belief that divi-
dends will be inaugurated this year at
the rate OF per cent. On the face of the
earnings such a disbursement would APP
pear reasonable, for approximately $50. 900
was added to net during the last six
months. AS indicating the progress of
the road in respect of earnings during the
past few years, the following figures will
prove interesting: The surplus over fixed
charges in the fiscal year 1882 was $780,
129 1889, S274. 74S; 1S991900 1886. $751; 19O0-01
1852 ia. Thus in 1878 only rs per cent
was earned on the $5,OOO,00O preferred stock;
in 1889 the full per cent. on the pre-
ferred and on the $1O50O,O00 common; in
1S99-1900 full preferred dividends and 46
per cent. on the common; 10000, full pre-
ferred dividends and 4.3 per cent. on the
common