The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-01-02
Gross Earnings Were Nearly
Two Billion Dollars.
s194,OOO,OOO IN PROFITS
Decision in Merger Case a Fea-
ture of the Year.
Tears' Increase in Wages
Amounts to 100000 900.

In spite of the marvellous earning rec
ord of the railroads of the United States
for the year 1902, which many good
judges said could not be surpassed the
gross and net earnings for 1908 have
reached the high water mark in the his
tory of American railroadfng.
The gross earnings for the year were
1880, 150,679. an increase of s163.770.412
over 1902; the amount distributed to the
stockholders in dividends amounted to
$194 600 600. an increase of approximate
" s2OoOOOOO.
In all transportation and financial
circles the characteristics of the past
year as regards earnings and income
are perfectly well known. Business
throughout the country, as measured by
dollars and cents, was at the height of
prosperity, except that in the latter part
or the year, in certain industries, nota-
ply iron and steel, the tide began to ebb.
STILL the recession was not sufficient to
destroy the record. But enormously en-
HANGED expenses Of various kinds served
to prevent corresponding gains in net
receipts, in which the increase, though
considerable in the aggregate, was by
no means proportional TO the advance in
gross revenue.
In a marked degree the year was one
OF preparation to take care of the traffic
OF the country, which has increased be-
yond the dreams of the most optimistic
The extent to which this preparation
has been carried during the year is IL
Illustrated by the Pennsylvania budget
Which calls for an expenditure of more
than S100,000,000, and by that of the New
York Central which requires an outlay
of more than 125,000. 600 on the New
York terminals alone.
Such figures as these led the delega-
ton OF English railway officials who
visited this country during the latter
part of the year to declare that the
thing which struck them most forcibIy
was the unwarranted extravaganza of
the big railway systems in the matter
of betterments. That this alleged ex-
traVagance Will turn out to be a stitch
in time is asserted by railway and
traffic experts, who know that the rev
enue of the railroads would have been
greatly exceeded during the past two |
years had their facilities been ade- |
quate to the traffic offered The fact |
OF the matter is that the demands upon |
American roads has greatly exceeded I
their capacity. which has led conserva-
i've homogeneous into what might ap- |
agance
There are many things which have
MADE i9U3 a rapid history maker in /
the railroad world Among them may
pc mentioned the passage of the Elk |
ms law. the decision in the Northern /
securities company case, the compile |
Ilon OF the organization of the Rock |
island company of New jersey and the |
expansion expansion and consolidation OF various
railway systems. The operation of tae
Elkins law has not proved altogether /
satisfactory. but it has been shown to |
De measure of great value to the |
LalIroaos- According to the interstate |
sSoIhneree commissioners report, 1t has /
s ilso given rise to certain abuses which
can be corrected only by giving that
BODY greater powers.
Ihat the law brought about a sta
bIlity in freight rates which all tha |
-gentlemen's agreements ever devised |
failed to do, there can be no doubt |
Never were freight rates so well main
tanned as during the past year, and this |
has operated to bring about increased |
revenues. Under the protection of the |
tllkins law, also, the payment of re-
pa0es being stopped, the railroads have |
peen enabled to increase freight rates |
IN many instances Although the in |
creaSeS do not amount to much in any
case, IN the aggregate they make quite |
an additional transportation tax upon |
the industries of the country. On the |
other hand the shippers have been ben
ehted py a uniformity in rates which /
they never before enjoyed
The decision of the Tinted States /
court of appeals to the effect that the
organization or The S4Uo, UvU,vs50 W. Aitetl |
securities company is in violation of |
the Sherman act exercised A wholesome |
check upon mergers and consultations
This case has been argued before the |
supreme court of the United States. |
and there awaits upon the decision of /
that tribunal the organization of a half |
dozen other holdings companies. Pa
pers have already been drawn, it is |
said, for the Gould lines, of the Penn !
sylvania system, of the Vanderbilt |
Hartman and Southern Railway sys- |
tens The organization of the Rock |
Island company of New Jersey, al |
though made in July, 1902 was really |
not completed until 1903, and was made |
despite the possibility of an adverse |
decision in the Hill merger case.
REORGANIZATION OF THE ROCK
ISLAND.
This organization was followed by |
the further acquisition of railroads by |
the Rock Island interests until the sys- |
tenn is now made up of about 1900
miles of railroad. There have been /
added to it this year the eastern Hi /
nois, the Frisco, the Choctaw, the Bur |
lington, Cedar Rapids & Northern and
half the Southern Pacif1c's mileage in !
Texas The holiness of the expansion /
policy followed by the Moores and w. /
B. Leeds, has been the wonder of the /
railroad world for more than u months t