The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-03-21
I[ARGE EARNINGS
Of THE SOUTHERN
President Samuel Spencer Tells
Of the Growth Of tic i
j Road.
.FEBRu ARY REC B & CORD . 3 \ RIEAK ER
Forty Per Cent. Of Railroads Earn
Ten Millions More Than III
February Last Year. "a I.

Mr.. Samuel Spencer. president Of the
road In his circular to tho stockholders
calling for5a!xote at the meeting on April
18th upon the plan to crentesn 500 oop, Goa
mortgage, emphasizes tho interesting
points In the roads growth. 1t will bo
remembered that Of all the rcorganiza-
lions Of tho early COS, Southern Rails
ways was the most difficult Tho old
system, the Richmond and West Point
Terminal Railway and Warehouse Com
pany, controlled $3.50 miles OF road. with
an annual fixed charge OF about SIC, o00. 900.
OF which hardly seventy per cent. could
be earned. The new company, the South
ern Railway. in 1894, It's first year OF
operation. earned 3l7,54s,e6 gross upon
100 niles OF railroad. These earnings
produced M35s,215 to meet 100000 OF
fixed charger It'll Is significant to record
that tho mieage operated has grown from
LOO to 7,iaS. being still less than tho old
company controlled. and that fixed charges
now amount TO 39.6l3.oo0 a year, with In
come available. The gross earnings mean
TING have grown to $+s,i45los.
OF the 5000, 900. 900 OF four per cent. bonds.
On August ~. 1902. the voting trustees
asked to have the voting trust extended
for five years. as certain important imam
cial plans still had to be worked out. This
bond plan originated in the voting trust,
and will be carried out. as the trustees
have full authority In tho matter. Hold
ers of the voting trust certificates have
merely been asked to vote to indicate
their will. The entire bond Issue is
nothing but blanket mortgage, Of which
only $l50OOOOO will be issued at once.
There will be reserved &2o.ooo.o0 for ac-
1uiring specific stocks OF leased lines.
ss5.o0o.oo0 for rcfunding other bonds and
for capitalizing equipment trust obliga-
lions. and about $1Oo,0oo,0oo for future
acquisition OF properties. CT which IS, 000,-
900 a year may be issued for bettcrments
and for equipment
There will remain the first mortgage OF
3120.0Oo,000 Axe per cent bonds. This
mortgage had allowed only $40. 600, 900 for
improvements, to be Issued at the rate
OF $2,o00,000 year. and only $4,9o0.0o0
OF these bonds remain to be Issued. a
clearly inadequate amount to meet tho
needs OF the property. Now that the
broader scale OF outlay has been deter
mined upon, 1t becomes Interesting to
consider the position OF Southern Railway
stock under the changed conditions. Last
year one and three quarters per cent. was
earned upon that stock. and this year
more than two and ene-auarter per cent.
will be earned, This means that about
s2,70O.000 will be earned In excess OF
the preferred stock dividend. Since Mr..
Spencer has said that S2O,000,000 has been
spent out OF earnings in engagements and
betterments since 1895, and since not
more than $40, 100000 has been available
out OF the total Of stated surplus earn:
ings, 1t Is plain that at least 100000
year, and n larger sum in recent years,
could be retrenched from expenses. This
would equal another one per cent upon
the common stock.
Joseph r. Richards. chief engineer OF
maintenance of way OF the Pennsylvania,
has completed the comptlationt OF the
mileage of the transportation liA1es owned
and operated by or associated in interest
with that company for 1905. This shows
a total mileage OF 5.1s6 miles, located as
follows:
Delaware, 23p.b9 miles; District of Coz.
lumbin. BIZ: Maryland. 4ol.77: New Jer-
sey, 1910: New York. 422.1o: Pennsyl-
vania, 1885,. %: Virginia, &C miles. Ths
E ferry and canal mileage aggregates II
miles. 81
In addition to tho 5,lS6 miles OF first
track, the record shows 1861 miles OF
1874 OF fourth; {. ss7.57 miles OF company'4
siding, making q. total trackage of II. 7.65
miles. The changes for the year show a
decrease OF 3.97 miles In first track, due
to q strengthening OF alignment: an In
crease OF 66. q miles Of second, third and
fourth track and 247.50 miles Of siding
or a total trackage increase OF s09.74
miles.
The grand summary Of all the lines
r oh n n
l0,eo6.6s.
1t would be necessary to 30 back many
years to find a statement OF earnings as
favorable as that revealed tor the month
BE February. AS only a short time has
slapsed since the close of the month, this
statement is necessarily limited to the
roads which make IT a practice to furnish
$fAarly returns, covering In the present In
stance 1896 miles, This covers not more
man ID per cent. Of the mileage Of the
.ountry, and yet the increase reaches
nose TO eleven million dollars
n0,oss, 1884, In other words, as against q
Total OF s42, $50, s73 for i february last year,
The total the present year Is ! Ses,ss W,
rhe ratio of improvement, 1t VIII DO obs.
,eryed. is 26,,64 per cent, also q very ex-
eeptional record for q lnontaly exhi DIT.
Mr.. A. II. Plant, comptroller OF the
Southern Railway Company, has y ssuea
the following statement Of the earnings p
5of the road for the second week "
March: 5 {s55 SO
Southern Railway Company, excluding
ct. Louis louisville lines,
This Year. Last Year. ncrease.
IS q, $3.50, bss, slo6, ~,
Southern Railway Company st, Louis
louisville lines: 81
This Year. Last Years Increase.
Hs, 7Sa. u s7o,1 7a. 49, $50
George s, Gibson has been appointed
travelling freight agent OF the Southern
ltaAnniston, to succeed ] I, "A. Smith. sJr,,
made assistant chief clerk 4 to. Freight
Traffic Mana ger Green in Washing ton,
The Southern Railway Company, has
slosed a contract for 100 lolonint Ives; Us
Be which arc to he OF The consolidated
freight type, 10 OF the Pacific typo and
The remainder switch engines, n
The general btiices 8ot the "A tlantlo anu
Birmingham have been removed from
Waycross TO alan as5 n