The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-08-22
The Decline of the Great Rock
Island Empire.
VIII the Big System Weather
the Storm!
HISTORY IN EPOCHS.
Methods of Operation Under
went a Great NortherniZing.
This Was Followed by IntrOduc-
tfon of Pennsylvania Methods.

What will be the outcome of the ROCK
Island-Frisco situation?
That is the question which is being
frequently asked nowadays. 1t is the
opinion OF conservative railway men
that the continuation for a short time
longer of the administration of the af-
fairs of the Rock Island as they have
been conducted during the past three
years can have but one result-the rev
olution of the affairs of the company.
The Rock Island system includes up
wards of Il, 900 miles of railway. The
lines included in the system are the
Rock Island lines proper; the Rock Is
land and FL Paso; Rock Island and
Texas; Choctaw; Frisco; st. Louis.
Kansas City and Colorado; the Chicago
and Eastern Illinois and various other
short and small lines.
Income of the Rock Island for the
year. estimated from the monthly
statements, was about as follows:
Net .------.--.... -.........-.. S11, 49,. 600
Other income ...--..--..-...-- 1.S5O,O
Charges and rentals .......-. 1851. 500
Surplus ......... ...........$ 2.54s. 200
Preferred dividend .......... 1,s5O.OCO
balance ----------- .--..----S o'S'zUO
This balance amounts to about OF
stock outstanding.
The surplus after payment of all
charges amounts to per cent on the
preferred stock outstanding.
As compared with last year the show
ing is decidedly unfavorable. The
earnings on the common in 1898
amounted to about s per cent
Including the equity of the company
I'm Frisco stock the value behind Rock
Island common in this years earnings
shows about as follows:
Rock Island Cas above) ........$ $4,000
Frisco surplus after dividends
(abouO -.--.-.-.-. ...--.-.--- 1,SOO,OOu
Total .-......... ..........-...s1.S59,2 200 |
These equities amount to 81 per cent |
on the Rock Island common outstand- |
In the above table there are several |
changes as compared with last year. |
S35O.OOO less than in 1903 interest on /
loans probably accounting for the diff |
ference b /
Charges show an increase of less than /
$500. 900. This includes about 500, 900 in /
terest on the Frisco 5s. $4,000 interest
on general mortgage bonds, $250O in
terest on notes and several other items. |
The reason it is not greater is to be |
found in the fact that some charges |
we've this year put into capital account |
which had to be met out of the current |
income last year
The great increase in expenses, So
S34. 006. $500. 900 a month, or over $4,000 |
a day throughout the year, has oc-
casioned much establishment. much
criticism and not little dismay in
some quarters. 1t was due to causes
now pretty well understood in railroad
circles.
The company spent about 10 per cent
more on conducting transportation in /
1904 than in 1903. though gross earn
angs were only per cent heavier. This
accounts for the bulk of the increase.
1t was not until the very close of the
hat he n 7fr7fz
grip on these expenses. We are told
that the increase in June net. over
$500 900. represents practically the first
fruits of the labor of the new manage
ment-
There was an increase of over 20 per
cent in maintenance of equipment and
in general expenses, due partly to the
winter, but more largely to the fact
That the equipment needed the expen-
diture. This also is apparently at an
end, as shop forces are today reduced
counting departments of the road are
being put in shape to do their work as
economically as they can.
To get at the probable cause of this
remarkable decrease in net earnings
by the Rock Island during one of the
most prosperous periods in the history
of the world it is necessary to go back
TO the date about three years ago
when the stock of the Rock Island
fell into the hands of spectators.
For years prior to this date the
Rock Island had prospered under the
conservative Cable management and
the system was in the hands of men
loyal to the Rock Island a more
loyal set of employees never worked
FOR any railroad and under the eff
Gent guidance of r. r. Gable, the
road was successfully piloted by the
shoals during the panic of 1908.
During a period beginning not many
years ago the world saw carried out
some Of the most gigantic merger
schemes ever originated. 1t is be-
neved that following the lead of other
plans which had been successfully car
ried out. the Rock Island was hit upon
by spectators as the thing to make |
use Of. initiate values, and by making
q Dig showing, incorporate for an i'm