The citizen. (Frederick City, Md.) 1895-1923, 1905-07-21
$40, 900 SPENT.
Baltimore & Ohio Raj | r "a d
Practically Rebuilt-Details
of improvements.

OF Improvements.
When the board authorized in
January last the regular semi
annual dividend of . per cent. on
the common stock the resolution
indicated that the question of in
crease had been deferred to give
the Company time to show that
it's earning capacity would con-
tinue along a level at which per
cent. could be safely paid. Its
earnings are now estimated to
show more than 10 per ceut. on
the stock \ per cent. dividend
on this showing would fit the
policy of leading railroads of ap
propriating a dollar for improve
ments for each dollar in dividends.
Discussing the changes in the
Baltimore and Ohio Railroad, the
Wall Street Journal says:
"Of the many provements
that have been made on the Bal :
timore and Ohio system since it
was turned over to the stockhOld-
ers by the receivers in 1899, none
has beeh more important than the
shortening of the line between
Haselton and Cuyahoga Falls,
making up a portion of the New
Castle division between New
Castle Junction and Chicago June
ton The road between Haselton
and Cuyahoga Falls has been re-
duced from 81 miles TO, approx
mately, 46 miles by changing the
route somewhat and the elimi-
nation of curves. In addition,
the grade has been reduced about
$40 of l per cent. and curves have
been practically eliminated. This
new line is expected TO greatly ia
cilitate the movement of thorough
traffic as regards both passengers
and freight service. The improve
ments made by the Company on
thi; part of the system have cost
several millions of dollars, and
the completion of this work mere
" accentuates the remarkable de-
velOpment in connection with the
physical condition of the Balti-
more and Ohio property.
THE total amount of money
spent upon the property during
the administration of the receivers
and since the stockholders took
control of the Company is in the
neighborhood of SI10,000,0O0.
About half of this amount has
been charged to capital account,
while the other half has been ap.
propriated from earnings. Dur
ing the past three or four years
the Company has been spending
at the rate of nearly 81. 900, 0Ue
each month on permanent improve
ments, including the reduction of
grades, Strengthening of align
ment, construction of sidings,
yards and terminals and the in
stallation of electrical signals.
Ever since the reclyership policy
of building up the property has
been followed. A great deal of
money was spent by the receivers,
who found the road in a deplor-
able condition. With the termi
nation of the receivership, Presi-
dent Cowen continued the work,
and each successive president,
namely, Mr.. Loree and Mr.. Muir
ray, aggressively carried on the
work of rehabilitating the prop
erty. Mr. Underwood followed
a similar course while be ran the
road.
1.-The Baltimore and Ohio road
of today, therefore, is not the
Baltimore and Ohio road of 10
years ago. The many improve
ments have made it possible to
operate the road with greater
economy. Earnings which for
merly went to pay the high opera
ting expenses are now going, in
part, back into the property and,
in part, into the pockets of the
stockholders in the shape of divi.
dends. A great deal of better
ment work has been done to meet
the requirement Of the laws in the
various States and cities through
which the road passes. In addi-
ton, the work of strengthening
bridges, the installation of inter
locking aud signal apparatus,
telegraph and telephone lines,
block signals. ETC., was necessary
from the standpoint of safety. AS
a result of the rehabilitation of
the Baltimore and Ohio, it oc.
cupies leading position among
the important Eastern trunk lines.
Its expanding business is indi-
Gated by the fact that earnings
are larger than they have ever
been before. The Company ia
making preparations for hand
ling even larger traffic, the re-
cent order for about $l5, 900, 600
of additional equipment, includ-
ing $50 engines and 10000 cars,
L..