Omaha daily bee., 1905-11-10
CUTTING THE BURLINGTON MELON
Juicy slices of the Fat of the Land
Passed Around.

/ JUICY SLICES OF the FaN OF Nne AfhhN
Passed Around.
New York Evening Post
An Atchison ofncal told the Interstate
Commerce commission that there was only
one kind of war in the railroad business
rate war The annual report Of tho
Burlington now at hand certainly suggests
a quarrel Of another kind-the purchase OF
That property by the Northern Pacific in
1901 and the long struggle over the owner
snip OF tho Northern Pacific itself. 1t was
| distinctly war over ownership. Some
| times road is purchased for its earn
ing power and again II is taken over by a
larger system to prevent rate disturbances
In 1901, the Burlington was highly respected
for It's earning power and greatly feared as
factor in making or undong rates The
same conditions exist today.
The Burlington not only serves the rich
est corn and wheat territory between Chi
cago and Denver, but has plans for enter
ing lines into undeveloped sections What
the Burlington connections with the Great
Northern and Northern Pacific mean is
evident from comparison Of gross earn
| ings for 1901 with 1909 In the two wears
gross earnings increased from S5O,O5l .aSs
10 $62'5SSS7s. %. per cent. But instead OF
paying dividends of per cent on $40, &c.,
wv STOCK the earning power Of the Burling-
Ton Is now taxed with interest charges on
S<l7'z-S'OOO per cent collateral trust bonds
IL Is true that the bonds were issued by
the Great Northern and the Northern Pa
cihc Jointly and the stock of the Burlington
deposited as security: but in substance
$4,000 dividend charges against the
burlington were transformed into IS 600 600
hNed charges. If it should happen for one
reason or another, that Burlington could not
pay the 100000 interest charges-in 1894.
"hen gross earnings dropped of Sc. 375 600.
OF % per cent net earning amounted to
only $8.SS5,O00-it can easily be imagined
that the Great Northern and the Northern
Pacific would refuse TO do so
But while net income amounted 70 only
SsS69'6O9 for 1902, $1357S.s37 was reported
last year leaving a surplus after charges
OF $4SoS's2b. This sum is equal to per
cent on the stock Of the Chicago, BurIing-
ton q quincy railway, the company formed
TO take over the old Chicago. Burlington
Quincy Railroad company. Gross earn
ings were the largest in the history of the
system, showing an increase Of STA. 900 over
1909. This increase follows a gain OF &. $40
ooO IN 1904 and $3.50 900 in 1903. That the
burlington suffered in common with MANY
roads from the trade reaction, is evident
from the fact that freight earnings de-
creased "oo'lO4. The gain of $1,3S3,67O in
passenger earnings indicates to remark
aole degree the prosperous condition of
the territory served In 1904 freight
earnings made up 6sh per cent of gross
earnings, and passenger 22.2 per cent
FOR 1905, income from freight con-
ulputed only 661s per cent of total gross
"hiie earnings from the passenger depart-
ment accounted for "a per cent The bal
ance sheet for the year just closed showed
an increase in cash OF from s6,6O5,ues TO
S'ZsH6lI In the place of the $29.lSO69 500 cur
rent liabilities reported in 1903 appeared
an increase of I14 $4,000 in bonded debt
judging from the income account. and bal
ance sheet for 1905. the Burlington would
prove a formidable rival should the con-
tempiated extensions be constructed.