Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-01-08
GREAT YEAR
FOR RAILROADS
Much Less Tendency to COnso.
lidatiOa Than the Year
Preceding
The ROCK ISLAND
Notable Extension. In Matter of
Gross Receipts, All Records
Broken

NEW YORK, Jan. S.Completed
statistics show the year just closed
to have been an eyentful one in the
history OF American railroads. Dur.
ing 1901 and 1902 railroad mergers
had been carried through on an unpre-
cedented scale AT the opening OF
1903 IT was believed that this move
ment toward railroad consultations
would be carried on on still larger
scale, and it was freely predicted that
all Of the principal railroad proper
ties IN the United States would be
merged into not over four or five
groups. But the crash in the indus
trials, the enormous shrinkage in
stock values, the stringency which
developed in the money market, and
more specially the adverse decision
rendered by the United States circuit
court Of appeals against the Northern
Securities company, combined to pre-,
vent any such wholesale consolida-
tions.
The rsult was that 1903, in the mat
ter of railroad consultations, proved
far less important year than either
1902 or 1901. The most important
railroad mergers of the year were
connected with the Rock Island sys-
TEN. Early in the year the Rock Isl
and opened negotiations for the pur.
pose Of the st. Louis & San Francisco
and its affiliated lines. The purchase
OF this system was almost immediate.
" followed by buying half interest
In the Texas lines OF the Southern
Pacific. Through these acquisitions
the mileage Of the Rock Island was
increased to more than $4,000 miles,
making it one of the largest and most
powerful railroad systems in the
world. Among the other important
railroad changes the purchase Of the
Seaboard Air Line by interests identi-
fled with the Rock Island and the
Southern railway, and the purchase
of the Hooking Valley and the Read
ing by Pennsylvania and New York
Central interests were of most note
About 500 miles Of new railroad
were constructed In the United
States in 1903, or about LIS miles
more than was built in 1902. M'.st
Of the new mileage represented exten-
sions and new branches. Ii thp cx
tension OF the Wabash into Pittsbnrg
Is excepted there was no parallel rail-
road building during the year. The
most important single piece of work
accomplished was the Southern Pa
cifie 40-mile cutoff across Great salt
Lake. This cutoff will reduce the
running time between Ogden and the
Pacific coast more than two hours.
Mention should also be made Of the
commencement Of. work on the Penn.
sylyania tunnel under New York.
Never In the career of railroads were
rates better maintained than In 1903.
The railroads in every section Of the
country had all the traffic they could
possibly handle, and there was no in
centive to the cutting Of rates. At
one time It looked as II the entrance
Of the Wabash into Pittsburg would
lead to some rate cutting among the
eastern roads There was no open
rate cutting, however. and 1t is now
generally believed that the Pennsyl.
yania and Wabash have settled most
Of their differences.
In the matter OF gross receipts, the
railroads broke all previous records
In 1908, having made an increase OF
like $150,00O,000 over the
figures OF 1902. In the matter Of net
however, the roads did not
make quite as favorable showing.
The increase In wages and the In
crease in the cost Of practically all
that enter into operation
and maintenance increased operating
expenses heavily and reduced net
In financial way the Pennsylvania
far outstripped all other roads. Early
u the year II sold S75.o0O,o0o Of new
stick for sso.ooo.ooo. This was fol-
lowed by the sale of over 800. .o0o. 900
of stocks and bonds on the subsidiary
This heavy borrowing By
Pennsylvania absorbed most Of the
aostins' supply Of eapltsi ssd the ott.
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