The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1904-02-06


| Transit Company yesterday expressed
| widely divergent opinions as TO the future
! of the company and its present condition.
Although 1t is claimed by the officials of
| the company that a net surplus of $4,000
| will be shown at the close of the fiscal
year. many persons prominent in financial
and speculative circles express 4 doubt as
| to the ability of the Transit Company to
keep out Of the hands of a receiver.
1t is believed that while the surplus can
be shown in excess of the operating ex-
| penses and fixed charges, the company
has expended such enormous sums for I'M
| provements and betterments that unless
| drastic measures are taken it will be in
| volved in financial tang!e.
| The question now. it is said. Is for the
| Transit Company to devise means to tide
| over the present stringency, resulting from
] increased investments in operating faci!i-
| ties. and enjoy the greater returns ex,
pected from Worlds Fair patronage and
the improved business consequent upon
the steady and rapid growth of st. Louis,
An oInciaI oI the Transit Company said
| yesterday that at the annual meeting OF
the stockholders of the company next
month the company would show, for the
| first time In its history, a surplus as re-
| suit of the years operations.
He said that this surplus probably would
amount to $6l, 900. which, in view of the
fact that the corporation has heretofore
closed its fiscal year with deficit of sew
eral hundred thousand dollars, is taken
as evidence of stability.
He said that the report of the Transit
Company going into the hands Of re-
ceiver was. so far as he knew. without
foundation. .. =
A broker stated yesterday that estinat-
ing the percentage of operating expenses
to the gross earnings on the same basis
as in 1882. a deficit, instead of surplus
penses were less last year than in 1902
and he was inclined to think that they
were greater. that possibly surplus
would be shown.
He was of the opinion that the operat-
ing expenses would have to be materially
less than that of 1902. and was inclined to
think that If anything the operating ex-
penses were much greater last year than
IN the year before.
A prominent financier. not connected
with the Transit Company, discussing the
"The Transit Company is confronted
with serious situation. 1t has expended
enormous sums for improvements. accu-
rnulated large debt of fixed charges and
has to bear the greatly increased cost of
operations.
"These conditions force me to believe
measures to relieve itself of its finacial
entanglements."
asked If he believed that the company
would go into the hands of a receiver, he
replied:
be necessary. though / am certain that
measures equally as strenuous will have
to be adopted"
President Carleton of the Transit Com
pany would not make a further statement
In regard to the situation 1t Is supposed
that a conference of the Transit officials
was held yesterday TO agree upon the
measures necessary to relieve the situa-
tion.
1t is stated upon good authority that the
Transit Company took up note for s5l.-
900 last Thursday, and made no request
for an extension.
SAID TO BE MORE
PROSPEROUS THAN EVER.
Many OF the leading flnanciers believe
that the Transit Company now is mere
prosperous than it has been at any time
since its organization, and that can the
receivership be held off during the Worlds
Fair period it will make up Its deficiencies
with plenty to spare. even in the face of
enormous expenditures for betterments-
1t VAS was wiGeiy circulated & that the, the North
trying to get hold of both the Transit and
Suburban companies
7 he North American Company. which
controls the electric lighting plants of the
city, Is supposed to be figuring on merg-
ing the railroad systems OF the city with
the Union Electric Light and Power Com
paly.
The Transit Company has a contract
with the Union Company to serve power
as socn as their new station on the Levee
near Ashley street is completed
An official of the Suburban road denied
that any such plan was in cohtempla-
ton. He said that. while the Transit COM
pany had a contract with the Union Com
pany, 1t was not probable that a COM
pany as largely interested as the Transit
Company would allow its holdings to slip
at a time like the present. when there was
81 ch great promise of recuperation.
The Transit Company thus far has paid
all the dividends on the United RAILWAYS
never earned it. This stock amounts to
s1s,155. 400 and draws interest at the rate
of per cent.
will fall due on March 15 it was reported
that a sl.Oo0,G0 note. part of a collateral
trust agreement with a local trust COM
pany, must be met shortly and that plans
are under way to get some means of pay
ing off this Indebtedness also.
The Transit Company was organized on
March g. 1899. 1t leased the lines of the
United Railways Company.
FIGURES SHOWING
CoMPANy'S DEFICIT.
For the privilege of operating the lines
the Transit Company must pay ns renta!
the interest of the outstanding United
Railway bonds and per cent a year on
all outstanding preferred stock.
The annual report of the company for
the year 1861 showed deficit of S525. .6s0:
year 1907 while considerably better than
the previous one, showed a deficit of S2S.-
0s3 49,
An Idea of how the latter deficit was
brought about can be gained from the
following:
Year ending December 81. 19o2-Gross
earrings; ss:4 4@ ,ss; operating expenses Is aEd @
other receipts. sls.440: total. s2,4s4. ass.
Payments-Interest on funded debt. 81
III 900: dividend on preferred stock of
United Railways Company. $oS6. .S6l inter-
est on collateral trust notes. s2s2. .6s3: or
interest. sl3l .G37: total. s2152.hs1.
The United Railways Company of st.
Louis. chartered on March II, 1898, under
the laws of Missouri, was the successor
of the Central Traction Company. The
company was Incorporated for the purpose
of purchasing and consolidating several
street railway companies of ST. Louis.
The underlying bonds of the United Rail-
ways Company consist of the following
obligations in the merged companies;
per cent; Cass Avenue and Fair Grounds
Railway, S1S13.G0O. per cent; Citizens
Railway N5co.0oO, per cent; c. H. Y.
L & NJ T Railway. $1,000 600. per cent:
SserfGn Ssn. 9nde Ayfadf Rswas RslMaS per- Rs;
Missouri Railway. 10000. per cent; St
Louis Railway 81. 948. 900. per cent; South |
ern Railway. s164, 600. 6 per cent: Southern
Railway consolidated mortgage. 1886. Geo.
per cent; Southern Electric Railroad ssoo.-
900, per cent; Taylor Avenue Railway.
$500 COO per cent: Union Depot Railway.
8: 500 co., per cent.
The United Railway Company bonds Of
st. Louis soS, ,292. 900. at 4 per cent: are pay
ESTIMATES nE TRANSIT AND