The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1904-02-23

railroad to the amount of bonds and
stocks issued.
g. The probability of the continuance
and development Of traffic.
In the circular a table Is given show
ing the comparative capitalization of all
the principal railroad systems south OF
the Ohio and Potomac rivers, and east
of the Mississippi, as well as OF several
roads In other sections.
ut will be observed, says the circular,
chat the bonded Indebtedness per mile
of the Seaboard Air Line railway is less
than the bonded Indebtedness per mile of
any other system with which the COM
parison has been made. 1t will also be
noted that in the matter of total capital
ization. including bonds, certificates of In
debtedness and preferred and common
Stock the showing of the Seaboard Air
Line railway is especially favored"
Financial Condition.
Concerning the lines financial condi-
ton of the Seaboard. the circular states
that the line is thoroughly solvent and
strong.
from the circular, encountered with any
floating debt which it was not thoroughly
within the ability of the company to am
ply provide for. AS a matter OF fact the
company has never had any fioating debt
which was not fully protected by treas
ury securities. and at no time has this
floating debt, exclusive of the temporary
advances to the Atlanta and birmingham
line, as the reports of the company Will
show, amounted to more than about one
months gross earning.
"Since the consolidation of the system
In 1900 Its net earnings have always large
ly exceeded all interest charges and rent
ais, and have allowed the carrying for
ward of a considerable surplus to the
credit of profit and loss each year.
1.-The surplus earnings over operating
expenses, taxes and fixed charges for the
year ending June 80, 1903, were $780, 4So;
former year, $500. 206.
From July /, 1901, to December 81, 1903,
a period of two and one-half years, there
was no incr ease whatsoever in the COM
pafly's bonded debt except In car trusts
| issued for new rolling stock; nor was
| there in this time any increase IN It's
outstanding capital stock.
During this period the company paid
| out for the redemption and retirement OIL
| car trust obligations, for cash payments
| on new rolling stock purchased, ana on
| rolling stock built in the company's shops
more than $2,500,000 cash, exclusive OF the
proceeds of new trust obligations issued
| for new rolling stock
I'm addition to these large payments the
company expended nearly s,00o,ooo for the
| ACQUISITION of the bonds and stocks OF
branch lines and feeders, and for the ac-
| QUESTION of the balance of the minority
| stock of certain of Its constituent COM
| panies, the principal item in this connec-
| ton being the purchase of the entire bal
! ance of the outstanding minority stock
| of the Seaboard and Roanoke railroad,
purchased within the last twelve months
at a cost of approximately 100000"
The physical condition or the Seaboard
| Is said to be first-class, and its terminal
| facilities in the various cities reached
| are excellent
Birmingham Extension.
! The Birmingham extension is fuily
| discussed. The Seaboard Air Line owns
the entire capital stock of the Atlanta
and Birmingham AIR Line railway which
is now completing the road from Atlanta
! to Birmingham. This new line. when
| finished will be the shortest between
! these two cities
! The Atlanta and Birmingham Air Line
railway will be one of the best. as well
as one of the most expensive and sub
stantiaI roads ever built In the south It
| is the purpose of the Seaboard to ex-
pend upon this work in addition to the
| proceeds of $1,000, 900 of first mortgage 4
| per cent bonds, which were sold year
| ago at IS and interest to secure funds for
( this construction, not less than $2,00O00O
additional, all of which is now fully pro-
| vided
AS lustrating the business being done
by the railroads In the Birmingham dis
trict. 1t is interesting to note that the
South and North Railroad Of Alabama,
owned by the Louisville and Nashville
railway. and running from Montgomery,
Ala, through Birmingham to Decatur,
Ala, distance Of 1888 miles, earned last
year approximately $4,000 per mile.
In their concluding remarks John L..
| Williams and Son say:
1.-THE closest and most careful scrutiny
of all the statements and figures we have
offered will confirm them as exactly
/ truthful and moderate. The deepest an
alysis will find the conclusions we have
| based upon them to be just and business
like. In our experience and close obser-
walton OF the Seaboard Air Line system,
and our knowledge of its surroundings,
physical condition. conduct and finances
as presented above, we can find no sug-
gestion of a doubt OF It's absolute sta
bility or its capacity to earn rich returns
on all its present securities under honest
and proper management"