The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-26

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as ii is, may be acquired only by
laborious study and comparison of the
| various tables. If it ever occurred to
the Rock Island management that
few frank paragraphs of explanation
would have enabled bewildered share
holders to grasp the facts. it was care
full to reject the suggestion
| Earnings and Improvements.
In the matter of income and expense
account. the mana cement this year has
something to say. 1t has suffered from
the same causes as other companies,
though more severely. While its gross
earnings for the fiscal year increased
1892 900. its operating outlay expanded
/ So us. 900. cutting down net $3,122 900 AS
| ing transportation bears the burden of
the increase in operating cost; but it
may be remarked that percentage of
| tranSporta ton cost to gross earnings.
the Rock Island. against 81 per cent re-
ported by the Atchison, "a per cent by
the ST. Paul. and 40 per cent by the
Illinois Central In his report. Presi-
condition of the property has been well
maintained" With thousands of miles
of what railroad officials term mud
track" this statement calls for some
inspection. What will be found from
the detailed account of operating ex-
penses is that the lines directly operat-
ed deducted from earnings last year
$3.50 per mile for maintenance of way
During the same twelve months, the
Atchison spent from earnings $1.121 per
mile for maintenance of way and $1.223
per mile for equipment. Another COM
petitor of the Rock Island system. the
Illinois Central. deducted 81, 2l9 per mile
for roadbed and s1.674 for equipment. 1t
may be added that. in addition to de-
auctions from earnings for special i'm
provement funds. the Atchison and the
Illinois Central have for some years
made about the same annual charges
per mile against earnings, for regular
maintenance of rOadbed and equipment,
as those above stated. While the $3.50
per mile spent by the Rock Island sys-
tenn on roadbed and $707 for equipment
is all that the management should be
credited with, it must not be supposed
that it covers all the appropriation for
renewals and improvements. Before
such work had been completed, cash on
hand had been reduced by $5,000,O00
temporary loans had been contracted
amounting to $12. 500 600, and SIS, 500. 900
of the new 1853, 000, 900 refunding bonds
had been issued and transferred to the
treasury for improvements and for ex-
penditureS made from the treasurys
funds for construction and acquisition
of new lines Actual expenditure
charged to capital for additions and i'm
provements. in addition to the regular
charges against earnings, amounted to
s., PIG 439 for roadbed and 1850. 021 for
equipment. 1t appears, then, that in
stead of maintaining the property ac-
cOrd1ng to the STANDARDS adopted Oy
competing roads, the energies of the
Rock Island management have been
chiefly devoted to keeping up the divi
dends paid into the holding company"
(only a surplus of $43, 900 was left after
paying them, this past year, and to
meeting floating Indebtedness as it ma
lures
st. Louis & San Francisco.
After the laborious search involved in
tracing the many unexpected changes in
the annual report of the Rock Island sys-
TEN it is a relief to take up the Frisco
report issued on the same day, but un-
der a statement that the company's books
had been audited by a public accountant,
whose ability as an expert is unquestion-
ed in railway circles. The Chicago and
and fhe Frseo n turn is U Swned BY the
Chicago, Rock Island and Pacific railroad,
but while the Frisco is operated for the
benefit of the Rock Island system, its ac-
counts are reported under separate cover. |
As result of the independence allowed
owners the familiar comprehensive form
of reporting annual results remains un-
For the Il months ended June 30 last
gross earnings of the Frisco increased |
ed for 1903. Earnings for freight Increased
81, 3T7O00. against H,792,000 in 1893, while
passenger earnings increased 1,O96,oO0.
compared with $685.. 900 for the previous
Louis worlds fair Of the s1.Sso.O0O in
may be found in its higher cost of con-
Quoting transportation. While the surplus
earned by the Frisco applicable to divi- |
dendS amounting to 81, $50 900 showed a de- |
crease of 100000, the case is not fairly |
stated until the surplus earned by the |
Eastern Illinois is also included. For le- |
gal reasons the Frisco deductS the guar |
anteed dividends ON the Eastern Illinois |
stock from its own income account As |
the Eastern Illinois. together with its sur |
plus earnings, is owned by the Frisco the |
actual balance applicable to dividends last !
year amounted to $3,025,574. instead of ST. |
$50, 356. This surplus was equal to AT per |
cent on the entire capital stock of the St. !
Louis and San Francisco railroad. The |
profit and loss surplus of the system for |
the year amounted to 1871, 726. .
Like the Rock Island the Frisco haS1
added considerable mileage during the |
past few years. Without figuring the ac- |
tual increase in mileage, convincing evil |
dence of this fact may be found in fixed |
charges, which have increase s.. 900. 600 in /
three years. For railroad of 400 miles, |
S13, 601 900 net. including other in |
come, this increase IN fixed charges calls |
for reflection. OF the S13. 100000 net increase
to funded debt reported for 1904. Sc S92, 600 is |
accounted for by the five-year AZ per cent |
Orleans extension, and 81, 646 900, by the 2Iz /
year per cent notes issued to take over |
the Memphis and Southeastern bonds |
Moreover. the company issued on June |
last 50. 500.0 90 5 per cent notes to reimburse |
the treasury for advances to construction |
and additions. Bills payable increased |
S475,o coo, cash amounting to $1,1Go,O00 de- |
creased $500, 600, and equipment notes