Omaha daily bee., 1905-09-20
RAILROADS AND INSURANCE
Fsrmsr ss BorTswsu from Latter Nay Be
Delayed in Improvements.
LOANS LIKELY TO BE CALLED IN
Belief Exists that DiseIosures Made
By InvestiEations May Have
RestraininE influence on
Railway Extension.


Disclosures Of the relationship existing
between railroad corporations and the big
life insurance companies as made through
the medium Of investigation OF the latter
have given rise 10 the question. "win not
this movement for reform in the manage
ment Of life Insurance companies tend 70
restrict for the present. at least, some OF
the vast improvements being made and
contemplated throughout the country by
the railroads. There are railroad men Of
keen intellects in Omaha who believe II
will. One Of them discussing the matter
said:
We have seen from these life insurance
company Investigations in New York that
some Of the biggest railroads, the most
aggressive, those which are now doing
the greatest amount OF Improvement are
heavy borrowers from some OF these life
Insurance companies. The question that
strikes me with considerable force Ia, win
not these life insurance companies be
compelled, by the natural consequences Of
these Investigations, to recall some, II not
the greater part OF these railroad loans
and therefore for the time being at any
rate, cause such a stringency in the rail-
roads Improvement funds that they will
have to delay their work? / believe such
will be the case
1t has been seen that r H. Hartman,
head OF the Union and Southern Pacific.
Oregon Short Line and oregon Railroad
and Navigation company, is deeply inter
ested, one way and another. in the finan-
cial affairs Of the life insurance companies
and it is understood his interests have been
heavy borrowers from these sources. II is
fact that is well known that the Harri-
man roads are leaders in vast improvements
Just now, both as to rolling stock, trackage
and roadbed and the fear is entertained in
some quarters that affairs in the east may
have a tendency to delay this work, not
for any great length of time, but for some
months. until the pecuniary situation can
be readJusted.
Prosperity for the Rio Grande.
The annual report of President Z. T.
Jeffery shows large increase in earnings
and important expansion Of the system by
the construction Of the Western Pacific
railway. Prosperity. increasing business,
net earnings, construction Of important
branches into new territory and an expan-
sion OF the system in general, which will
make 1t line Of paramount Importance and
influence in transcontinental railway AFFAIRS,
is the pith OF the annual report Of President
Jeffery for the Denver & Rio Grande rail-
road which has just been made public.
ing June 80 were Sl7Os1. .5O7SS. an increase Of
s5s5 o72.E over the preceding year. The
operating expenses were $l0.16s. $50 81, being
an increase Of S1l0,5l6.S3, and the net earn
ings were Sc s62, 546.72, an increase Of S4I4-
b55.4 20. The percentages OF increase were in
gross earnings 355 per cent, in expenses
l10 per cent and in net earnings 7.4 per
cent
Official announcement is made for the
first time that the Denver & Rio Grande
and the Rio Grande Western-the Rio
Grande system-own the new Western Pa
cihc railway. The construction Of this new
line from Salt Lake City 10 San Francisco
is now a certainty and its completion within
the next three years is confidently expected.
The commercial growth OF the country,
the marvellous richness and development Of
the great Pacific coast territory and Of the
foreign trade tributary thereto, and the ao-
QUESTION Of the lines Of the Southern Pa
ciho company by line in competition with
the Denver & Rio Grande, are some Of the
reasons assigned for the building Of this
new and important transcontinental line.
sixty New PuIImans.
The Overland Limited Of the Union Pa
cihc Tuesday morning was made up OF the
first assignment OF sixty new Pullman
sleeping cars which have been put in ser
vice on this most excellent train. They
will be put in regular service between
Chicago and the coast. These cars are the
very latest creations OF the Pullman COM
pany and are indeed the acme Of the build
ers art. They contain ten sections, q
drawing room and two state rooms. one at
each end OF the car, the state room at the
drawing room end being so constructed
that It can be opened into the drawing
| room or used separately. The drawing
! rooms are of rich brown mahogany and
| the interior Of the rest Of the car is Of red
mahogany. The upholstering is Of the rich
I est and is finished In old gold Electric
/ fans are in each drawing room and the
! toilets are finished in white enamel and
/ every modern convenience. The cars are
veritable hotels on wheels, with every
thing built on the most sumptuous order.
New stations Not Needed.
W. w. Johnston, assistant general freight
agent OF the Burlington has returned from
drive over the new cut OF OF the Great
Northern from Ashland to Sioux City and
says the road strikes a splendid country
! When asked as TO the probable locations
Of the new stations along the line Mr
| Johnston said:
There will not be need of many new
i stations, as the road strikes some very
good towns which are already located
Yutan is on the line between Ashland anC
Fremont and IL is from this point that tn,
road to Omaha probably will be run. Tn,
line will run through Homer and NickersoI
and about four miles east Of Bancroft
There is room for a town somewhere be
tween Homer and Bancroft II will rul
| about two and half miles east OF Hope
and will pass through Lyons and Oakland
A station probably will be built between
| Hooper and Lyons"
Mr.. J. H. Cardwill Of St. Louis has &C
! cepted a position as cutter ana designe