The Birmingham age-herald., 1903-09-01
RAILROAD WORLD.

RAILROAD WORLD.
 The Wall Street Journal says: "The an- nual report of Southern railway will be awaited with much interest this year in view of the fact that the company has been subjected to sweeping changes in its official course.
 For the year ended June 90 last, the company shows an increase in gross earn ings of s4,365,S61. an increase in operating expense of $3,Ss2, 7OS. and a gain in net of $473.15s. Thus, operating expenses have taken close upon 90 per cent of the gain in gross earnings. The question is to what extent this represents increased im provement of the property and to what extent increased cost of doing business. Conducting transportation and general expenses last year took $14,215,000 in round figures We may estimate the increase in these this year at an amount which will bring their aggregate to $17.00O,000. Taxes will no doubt bring this up S,25O,- GOO, which would leave for maintenance
 
 O00 The strike will undoubtedly have caused an increase in maintenance of equipment expenditures which we may reckon at $1,50O0O0 at least. Of this, pre- sumaby some $900,000 would be for oco- motives as it would be in this department that the strike expenses would be most severely felt If our estimate is correct. maintenance this year would include cer- tainly no more improvement work than last year and possibly not as much. The meaning of which is that the gross gain of over s4,0O0,000 has probably all gone in increased expense arising out of the strike and the consequent Reorganization of service.
 This, of course will reflect itself in all the figures that bear upon the efficiency of the property We understand that the management has just about held last years figures of train load namely. 225 tons There has been a larger movement of freight car mileage and some reduction in the average loaded car per train. Train expenses are higher in all directions. AL together, the companys figures win prob- ably show in a striking maner the effect on a railroad of trouble with its employees.
 For the year ended June 30, 1902. the company had surplus over fixed charges equal to substantially per cent on the preferred stock and per cent on the com mon stock. The increase in net earnings for the six months being about s473,0 GOO and charges having increased probably $400,- 0O0 for the year. Off we may judge from the six months statement issued in March). the company will presumably show about the same result for 1903 as 1t showed for 1902. namely, about l per6cent or possibly IF per cent earned on the stock Under normal conditions, it ought to be able to do better than this with gross earnings of something like $42,oOo GOO. or in round figures 5000 a mile. It would seem that the companys organization needs little attention.
 Commenting on the Rock Island-Frisco control of the Seaboard Air Line, MT. A. R. Bragg of the Little Rock Merchants freight bureau says: This consolidation will be very beneficial to the cotton ex- porters of Arkansas as it gives the Rock Island-Frisco system continuous line from Little Rock and othe junction points in Arkansas to Savannah and Portsmouth. Va. both recognized seaports where connection Is made with ocean, carrying steamers to all foreign ports.
 "This. together with tine fact that the Missouri Pacific will soon have it's Mem phis-New Orleans line completed down the west bank of the Mississippi. should result in giving the exporters of Arkan- sas not only cheaper, but more prompt service. as shippers will nave the prefer ence of three routes-the Rock Island system to Savannah or Portsmouth. the St. Louis and Southwestern Cotton Belt, to Galveston.
 Cotton shippers as rule prefer the south Atlantic and gulf ports for the ex- portation of cotton for the reason that they obtain prompt sailing. Then. cotton shipped by these ports reaches its des- tinaton much more, quickly than when sent north via Boston or New York. The steamship service from Baltimore, Sa- vannsh. Brunswick. Charleston, New Or leans. Pensacola and Galveston has great ly improved during the past five years, with the result that it has caused serious alarm to the trunk lines and their con- nections from the Mississippi and Ohio river crossings. as we'll as the steam ship lines from New York. Boston and other Atlantic ports"
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