New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-30

uOus objections from the minority stoekNaissra
Of the Louisville and Nashvilie. for in q prom
erty earning from Is TO 20 per cent. Independents
holders would consider their stock partially
eondscated by any plan which would limit
II TO a z per cent dividend. whatever the GUAR
antee. Louisville ought TO be selling az
200 on its showing OF earnings-for any one ac
all familiar with the manaEemeut and current
results knows that enormous SUNS are being
spent on the proDeFty's improvement-even In
GLIDING the outright purchase Of important ter
ninals-aH arbitrarily charged to current oper-
ating expenses.
AS to the Nashville. Chattanooga and 81.
Louis. analysis shows that much more than 10
per cent. could easily be paid on the STOCK M
majority OF which is owned by ths Louisville
and Nashville. and is one Of that company'a
most valuable assets
It was specifically stated IN the Chattanooga
report for the last fiscal year; The increase in
percentage Of expenses to earnings for the past
two years has been on account OF 81. 127OGS
expended In 19O2-O3 and s., 1Oe 30 expended in
1SO3-O4 for additions to property included in
operating expenses Deducting these amounts
the percentage OF operating for 1926 wa,
61.O9 and for I9O3-O4 was 634S"
Now. taking i3 per cent. as approximately tho
cOmpanys estimate OF necessary expenses. the
outcome for 1904 would figure IN this way:
Gross earnings 1900 $40 9ee 40,
E2Epenses. 6educting improvements e42o 10
Sss ss,Tl aaa.. '57;s2ss
Interest rentals. 1878
Balance for stock equal 70 ia1 per cent?. Srol98u
Growth Of earnings has been steady and Of
remarkable proportions. Since 1897 the gross
total has risen from SJ643 DAB to 100000 a
gain OF 81. So. OT9. or 50 per cent.
Applying the official estimate Of GO per cent.
for necessary expenses over the whole period %
1S07-19O4. a calculation shows that approx
mateIy 81. OOOOOO or 40 per cent. on the capital
stock. has been put into permanent improve
ments; and. Of course. the result has been the
attainment Of a high standard OF physical ex-
ceIlence. to which maintenance items also bear
witness. Maintenance OF way expenses in
creased in the seven years following 1897 SOS
per mile. or so per cent; maintenance OF equip
ment increased S54S per mile. or 40 per cent.
Total maintenance OUTLAWS increased more than
81, 100000. from $4,000 to $2.593,OO0, willis
increase in miles operated has been only noni-
nal. equal to less than per cent.
And while the traffic and traffic results have
been making such striking gains there has been
no addition whatsoever to share capital AMI
only ST24OO to funded debt And. coinciden-
tally interest on funded debt has actually
fallen oh-the proportion OF gross earnings re-
quiTed 20 meet this LIABILITY mas been cut n I"O
It was 1881 per cent. for 1897 and 9.3I per cent.
for 1904
The company reported at the end Of 1893 a
floating debt. Including equipment notes.
amounting TO 81 .567. $50. Al the close OF the
past year there was floating debt and no out
standing notes OF any kind whatever
The entire line is laid with steel rails, Ex-
penditures on roadway last year averaged S1.6u1
per mile about the same as Louisville and
Nashville but more than twice much as on
St. Paul and many other important Western
systems with about the same traffic density
An idea Of what Is meant by such Hherality
TO property may be gathered from the fact that
had ST. Paul expended in 1904 at the same rate
per mile as the Chattanooga. its outlays on
roadway would have been $5.SS2. 600 larger than
they were; and. the St. Paul company would
have had a surplus SUFFICIENT for only one
half its preferred dividend requirement.. and
nothing would have been earned on ST. Paul
common stock.
As to the markets immediate future, there
shows this guide The foremost. stanchest.
| conservative interests IN Wall Street were
quietly confident, buyers as the market yester-
day closed. H ALLAWA4-