The Minneapolis journal., 1903-04-22
RAIL, ROAD
Mp. DIRECTORS MEET
Long Session Raised Question as to
s the Significance of the
Meeting.
Question of Dividends and Earning
Capacity Of the Three
. Merger Systems.

Northern Pacific directors held long
meeting yesterday afternoon in the offices
in New York city,, Not one of the busy
men left the room before the close of the
session, and it is, therefore, believed that
the meeting was important, that per-
haps the quarterly dividend was declared,
altho at the close Of the meeting no in
formation was given out further than that
dividends We're not generally announced
until three days before their payment and
that such date had not arrived. .
~,%, Large Earnings. y
Now that the three merger companies
are free to declare dividends, consider
able attention is being attracted to the
large earnings of each.
It is stated that son the present years
volume of earnings for the Great North
ern. Northern Pacific and Burlington, the
earning capacity of the Northern Secu-
rites is in excess of IL per cent on the
stock.
The net earnings of the three roads
for the eight months of the present fiscal
year ended Feb. % were as follows: Great
Northern, SIS, 900; Northern Pacific,
s14, 900, 900; Burlington, s17,2o0,00O, while
the roads show a surplus after charges
down to the interest on the Burlington
Joint As of $32, ,220, 900, Indicating a sur
plus for the year Of upwards Of S4S,OOO,-
600. After providing for the interest on
approximately S22O,0OO,000 Burlington
joint As the final surplus indicated is ap-
proximately S40,000,000.
This is about what the annual reports
are expected to show for the year end
ing June 80. 1908: But in this connection
it is pointed out that the opera ting ex-
penses have included considerable
amount of .better1nent work which might
legitimately have been made a capltal
| charge The amount so expended on the
/ three systems is stated to be at the rate
of about $4,000, 900 in the aggregate for
| the year. so that the real earning capacl-
ty of the roads is. greater by that amount
than the indicated surplus of $40,0OO,O0O
| Taking the authorized capitalization OF
s400. .00O, ,000 it appears, assuming the cor
| rectness of this figuring, that the earn
ing capacity Of the three roads OH the
present years volume of business is 11A
per cent on the Northern Securities stock
The large earnings of the Burlington are
perhaps the most striking feature in the
very favora BILE showing made by the three
| roads This company shows for the eigh
| months surplus after all charges, in
| cluding interest on the joint As OF $4,000,
| 900, and since it's purchase has earned ap.
proximat tely' $8,000,0O0 for the. Northern
| Securities in addition to the benefits which
| have come to the other roads from har-
| monious operations .-.. .-.
| 1t is stated by the friends of the two
companies that such results seem a suf-
! fcient warrant for the acquisition of the
Burlington, even at a price which many
people at the time considered high, and
the joint ownership Of the Burlington
by the Northern Pacific and the Great
Northern is believed by many to be un-
assailable even should the Northern: Sc
curities be finally declared illegal. The
Burlington is at present proving an ex-
tremely profitable part of the Northern
Securities system. Gross earnings have
since the first Of the year been running
over $1,000, 900 month in excess of last
year, and this rate Of gain looks like
continuing at least to the end Of the cur
rent fiscal year. g.