The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-03
RAILROADS IN NEW FIELDS.
THEY PROVIDE CAPITAL FOR
MANIFOLD ENTERPRISES

A New Factor IN Industrial Development
which Benefits 10th Parties 10 I'M
BsPgain-(ash Supplied In Return
for Trafic-Costs Millions, but Pays
One Of tho most conspicuous and inter
esting features Of the recent annual reports
Of the greater railroads Of this country II
the increasing volume OF 3other invest
ments." The phrase, as used In the reports
covers money placed in enterprises not
strictly related to railway transportation,
but located along the lines Of the roads and
so dependent on transportation by rail
as to warrant encouragement and financial
support from the roads over which their
shipping passes.
So important Ia the growth OF such enter
prises to the RAILROADS. that recent years,
and particularly the last two years, have
witnessed the investment OF millions OF
dollars In this manner. Railroad officers
whose co slant study Ia to promote and to
develop traffic along their lines, have been
quick to change their old attitude OF indlf.
ference to one OF lively interest In local
concerns and to aid them materially with
ready m ney. 1t has boon easier to do
this recently on account OF the increasing
SURPRISES Of the roads themselves. What
would otherwise be idle money or money
drawing ordinary interest is now so in
vested as to draw not only the usual interest
afforded by good indus.rials. but in addi-
ton to turn back to the roads increased
income in the shape Of traffic.
Undoubtedly the heaviest investments
Of this nature are those Of the Eastern roads,
especially the .coalers." in coal. iron and
steel properties. 1t is practically impos-
sible to estimate the amounts invested in
such ways. but the total is In the millions.
While In most cases the actual control Of
these properties Is not sought, sufficient
stock is held to give the railroad interested
an active voice in the management and to
assure to the road at least It's fair share OF
the traffic.
Perhaps the two most important recent
instances OF this tendency reported are
those concerning the Colorado Fuel and
Iron Company and the Kirby Lumber Com
pany of Texas. In the case Of the former
property, the Biggest Of its kind In the
West, there was a long. drawn out fight
between the Union Pacific and the Denver
and Rio Grande to secure such a voice in
the management as to assure traffic. Tho
struggle ended In a compromise by which
each road will get share Of the immense
freight business OF the CORPORATION. 1t
cost the owners OF the roads millions Of
dollars to reach this point, but the returns
will justify the inve tment.
In the case Of the Kirby Lumber Gem
pany. ono Of tie biggest OF the kind IN the
country. the purchase Of some n,o0o, 900
Of stock was made by St. Louis and San
Francisco railroad interests, both as an
H., mt ~ kA frn HSN
which this. participation would mean 70
the railroad. The hulk Of the timber and
lumber hauling Of the company had gone
proved profitable. The Frisco tapped
great tracts Of virgin forest and PRESIDENT
his road is nearly unequalled, decided to to
secure both the profits OF ticking this raw
material to the mills OF the Kirby company
and those Of Transporting 1t away again
A simila; i Ts vas ucdoue, . in IN
Pennsylvania when his road became q
large holder Of stocks and bonds in the big
Steel Company. The holdings
Of the road itself amount to about $500 Loco,
from which it derives an income OF about
nected with the road arc. Of course, much
greater and the resulting income from
freight is Of prime Importance. The Penn
sylvania and ito directors are also stock
holders in many other big enterprises.
which contribute to the volume OF trefhc.
Company, the Girard Point Storage Com
psny. the Merchants Warehouse C mpany.
the New Jersey Warehouse and Guaranty
Company, the Summit Branch Mining
Company and the Susquehanna Coal Com
The big Western roads. as might be
imagined, are par1 icularly disposed 10 aid
the Industries along their lines In their
case this is but an onward step from the
DAYS when they subscribed millions OF
dollars in the bonds of the struggling towns
ist ence along the parallel lines Of steel. The
towns were instituted: they began to grow
and indust ries Of all kinds were helped
by the railroads to locate in them
This ie the story Of the evolution Of many
q TIE present thriving CIV 30 OF me ini west
OF the roads and their onward strides have
been almost equally due to them. Naturally
90 soon as these cities and their industries
were able to fend for themselves they In
turn contributed TO the upbuildine Of the
ISIS, but business. institutions. ever
looking ahead to the returns from invest
mente.
Under the caption Of miscellaneous tocks,
the Southern Pacific Company carries
bCu0 oo,<SO,lOS Oh ScCQIuNb 4uCIo 70 10
detailed statement Of their nature, but 1t 10
known that fair share represents
Investments Of the kind made By other
Western rosds. The road % heavily in
terested In tho development Of the oil fields
In its territory. and on ito books has entered
stocks in such companies to the amount OF
1927 900. Other enterprises IN which the
road Ia Interested are the Wells Fargo Ex-
prese, N which II has 81 $4,000 invest ed
10 0tissns' National Bank Of New orlee %,
lss 900. and the colfax and Forrest Xii
Commercial Company.
The LIST Of similar investments BY the
treat Union Pacific Railroad 10 long one.
4 totals nearly $4,000. COO, including
y, 400 900 Of Pacific Expt - Company stock
md q 900 900 Of the Union Pacific Coal
Company. Other stonks are those Of the
8oxsman Goal Company. $4,000: $4,000
Desert Salt Company. Sa2e 900 Greene River
! Manufacturing Company, and Of the
Tope Ia Iron Company, Utah time d G. ment
5onpecy. Rettlesn.ke Creek Water Com i
,any, Wood River Improvement Company
md OF the Union Elevator Company, In |,
Omaha and Council Bluffs
Traces Of the older inve stnents and their |
'esults, In one instanes at lesst. are found !
n tho chronic.ed holding Of u 900 Of stock {,
n the Portland (OreH Chamber Of Com
nerce, and bonds for $4,000 Of Cheyenne
,ounty. Oil. and 5000 Of the city OF juno
ion City, Davis county, Kan. The road
llso holds y, 7os 900 bonds Of the Union |
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