The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-12

I'm other words, the company spent in 1900
on maintenance Of way and structures $42O
per mile. In 1901 the company increased its
maintenance Of way to $477 and it's maintenance
of equipment to 1896. In 1902 the charges were
per mile on maintenance Of equipment.
In 1900 the Northern Pacific spent $1,OS5
per mile on maintenance Of way and $3.50 per
mile on maintenance Of equipment In 1902
the Northern Pacific had advanced these figures
to $3.50 and $3.50 respectively. In point Of
fact, the 500 Line in 1000 spent less aggre-
gate amount on maintenance of equipment than
it spent in either 1890 or in 1885, tho gross earn
ings in neither Of these years We're within
81, 100000 of the gross earnings Of 1900.
IF the 500 Line had charged of for mainte-
nance Of way in 1900 at $500 per mile, 5000 less
than the charge made by the Northern Pacific,
it would not have earned its preferred dividend
If the road had maintained its road as the
Northern Pacific did in 1902, without any in
crease in its maintenance of equipment charges
the surplus of $3.50, 900 would have disappeared
altogether and left a deficit.
THAT the management in 1900 went too far
the same management in 1901. In this year, tho
gross earnings fell off over half: million, both
items of maintenance were advanced decidedly
Maintenance Of way advanced to SAT- per mile
and maintenance OF equipment to 1866.
THE management began policy of real
economy In 1901. The economy Of 1900 was
| recognized as of that brand that wrecks rail-
roads, even tho it did enable the income account
The economy of 1901 resulted in an increase of
the average trainload from 3O1 tons to B14
tons. The result of these changes was that the
operating ratio advanced from 1913 per cent
in 1900 o56.1 per cent in 1901. The ratio
of 49.6 per cent established in 1900 was far the
lowest in the history of the company.
I'm view Of these facts from the record Of
1900, 1t does not appear that the company really
| earned Its preferred dividends in 1900.
Fault is also found with the report OF the
commissioner of railroads for North Dakota
quoted a % noiuf fyooo out
that the road had been much improved since the
general improvement, Of It's finances, but that
| 1t was still in need of much work at the end of
| 1902 We quoted all we had to say about 500
! lines In North Dakota, main line and branches
so that the burden of disapproval rests upon his
shoulders, not ours.
"Our critics, however, supplement our infor-
| nation on this point with the statement that
| the main line is In drst-class shape with the
exception OF 11s miles, which is still to be laid
| with heavy rails.
| for terminals and improvements We're 81, 500, 900
| was prompted by the statement at the conclusion
| OF President Lowry's remarks to his stockhold-
ers, last year, that the business Of the company
| had increased SO fast that additional terminals
must be acquired at great cost. We found
| in the list Of authorized bonds none that appear
applicable to such purchase directly. The con.
solidated bonds can be issued to cover new
mileage at $50, 900 per mile This condition OF
the mortgage is not quite clear. That the
Canadian Pacific understands 1t is evidenced BY
| Of 1908: go fp
The guarantee OF your company as to inter
est was Endorsed on consolidated bonds of the
Minneapolis, st. Paul & sault Ste. Marie Rail
way company to the amount of 50, 454, 900. renre
senting the cost of 122 ITO miles Of additiona
| railway
''The 500 report in 1902 also mentions til,
81 454 900 Of bonds as covering additional nila
age constructed and adds that advances wer
from surplus earnings will be replaced from til
proceeds. -
| "since these bonds are presumably. mar
OF the 50, 100000 which Mr.. Lowry states ~
| available for improvements, we cannot see tina
our statement was incorrect. The $1,000 900 w
mentioned is the residue Of the So On{1 900 sacon
mortgage bonds after the payment Of the Hoat
] ing debt Of SO, 500, 600 in 1850.
Wall street finds no fault with the incom
account OF 1908 The road is earning its divi
bends handsomely at present. We reterate on
statement however that the objection Of wal
street at large to the payment of such divi
i Of the company 49,