Omaha daily bee., 1906-05-31
FISH SHOWS RAPID GROWTH
President Of Illinois Central Makes Inter
estine Report for the Year,
BIG EARNINGS AND IMPROVEMENTS
In Conclusion chief Executive Cor
daily Shares Credit for Success
of Road with All EN-
pIOyes and ORcers.

! the Illinois Central railroad is in the hands
Of the printer and contains a general re-
! view of the company since its formation
The report shows that in 1886 the company
was operating 2149 miles of road and in
| 1906 this was increased to 1854 miles. OF
the $9l.57O,999 net earnings during that pc
! riod SZ7,S00,961, 3014 per cent. was de-
voted to permanent improvements. which
might have been charged to capital and TO
other kindred purposes.
The total gross receipts from traffic In
1886 were S12529,4ss, and in 1906 the total
gross receipts were S49.5Os, $50. In 1SSs the
Illinois Central operated trefns into but
| five cities which had more than 1000 in
habitants, namely, Chicago. New Orleans,
| Dubuque. Springfield and Bloomington, ILL.,
This number was increased by 1905 TO
thirty-six cities with a population of more
! than 10000.
Fart of the RepOrt.
The president says at different points in
his report:
The showing made of a relatively larger
| increase in tine common capital stock OF
the Illinois Central than in that of other
railroads induces me to recall some taCte
relating thereto For every share OF added
capital the company has received in money
at least Its par value; each stockhoider
has, in respect TO every new issue, had
precisely the same right and opportunity
of subscribing, and in no case has The
company paid a dollar for having any Of
| its stock underwritten. All Of which
proves that the shares have been held by
the general public for investment and that
those owning them hsv8 had such an
abiding faith IN the 5nterpr1Be AZ 20 nave
thus admitted 02 an increase in tine money
At the risk q the business from $I9.0O8'-
In 1885 the company employed S,5Is per-
! SONS and paid them S.957,y56, being an
average of $3.50 each; -
. In 1906 Il employed 2S,s1. and paid them
$40 902,7S7, being an average Of SIS1 to each;
The number of employees has increased
mile PeF Een 6as Sas @ In
1856 to 6.49 in 1896, say, 5e07 per cent, and the
average annual compensation of employees
Competition, adverse legislation, increased
taxes, enhanced wages and the better
made it Impossible for railroads in the
west to sustain the 10 per cent rate OF
distribution which the stockholders OF the
| Illinois Central Railroad company received
year by year from 1855 to 1873; inclusive
! In the whole period of fifty-four and
one-half years, from the incorporation or
the company on February 10, 1881, to the
! date of the last annual report for the
year ended June 3d. 1895 there were ;,rts.pas PAID
| Since January l, 1860, on which date tho
ninth distribution was made, semi7annuGl
| dividends have been regularly paid In cash
The average rate per cent Of distribution
on the capital stock 10 resPeGt 10 thess
/ ffty-four and one-half years been 80 per
cent per annum. -
| The sum of all the cash dividends thus
! paid has been Sl15,566,6s5. and those paid
| In the nineteen years from 1881 to 1910, IN
! elusive, amount to Sl,Ss,6OO
People and the Company.
In 1885, of every 500 paid by the public
| the public on or near the line Of the rail
| road, for operation, expenses and taxes,
Sass, and there was left for dividends
1 Sl5.46.
In 1905, on the other hand. of every 500
/ was returned TO theNpubllc on or near the
4 line of the railroad, for operation expenses
and taxes, $7432; there was paid for fixed
4 charges s13.02, and there was left for divi-
dends Sl2.66
The heaviest locomotive now in use
| weighs. exclusive of tender, upward OF Ill
| tons The most powerful locomotive now
in use has capacity for hauling. on level
! track, 1853 tons against maximum ca
| pacitY in 1890 of 2.84 tons.
The average capacity OF each locomotive
has been increased from 21l7 tons to $3.50
of locomotives has been increased from 473
to 1,15s, and their total hauling capacity,
bon level track, from l,0O1, ,4O4 tons to 4469.5e4
| There were then in service 4l7 passenger
| cars; there are now S02. In the meanwhile
all cars used in through passenger service
have been provided with vestibule equip
| ment and with master car builders stand
ard of automatic couplers.
| All passenger equipment Is now ntted
with Westinghouse quick-acting automatic
There were then 1920 freight cars and
work cars; there now are b6,029.
The average tonnage capacity OF freight
cars has been increased from 11.6 tons
to 84.21 tons. Maximum capacity Of freight
| cars from thirty tons to fifty tons.
Then only 62l, or 4S7 per cent, Of the
freight and york sS esgs sas Were S u, EQUIPPED win
so equipped, and all freight cars are
equipped with automatic couplers.
Taxes and Earnings.
On the interesting subject of taxes Presi-
dent Fish has this to say:
The charter of the Illinois Central Rail-
road company reserves to the state OF Illi-
nois for all time an interest amounting to
per cent OF the gross receipts of the 706
! miles Of railway built hereunder. The
phenomenal growth Of the city Of Chicago
and the policy of the company have Co
operated to increase the traffic on that
part of the system more rapidly than has
The share of the receipts which thus ac-
| crued to the state in the calendar year
ended SS TsS June 50 isS Sn1 Tbst y a6
| say, In eighteen and half years it's net
income from this source has been nearly
which was last year paid by the Illinois
Central Railroad company on all the bonds
oy It e. % PdF smUnnt esn the 10
The taxes paid on other parts of the
railroad which are assessed under the gen
they lie, were. in 1856. siss. "a or sii2i7 per
$685.. .772, or s255.s1 per mile operated. The
increase in ehe sum so paid Is, therefore,
S742, ,028, or 37l5 per cent. while the In
crease in amount paid per mile Of railroad
operated is Sl1374 OF so per cent.
In 1856, of all the money received by the
railroad company from trafhc, there was
disbuTsed on or near the railroad:
For operation expenses and betterments
l. e. wages and material t7,156, ,6Sl; for
taxes. &76, 459 The amount thus returned
to the public In 1885 was s., 1921 .009, or 81. Il
per cent.
OF the remaining 3s.2s per cent there was
paid as fixed charges trent and interest),
being the hire OF money ana lands not
owned by the company, 81 $50 931, or 22 S3
per cent, leaving for dividends, 81 1856 472,
/ or Is. as per cent. Total gross receipts from
traffic s12529, ass, or 100 per cent
In 1905 OF all the money received by the
I railroad company from traf1c there was
disbursed on and near the railroad:
For operation expenses and betterments
Fi. e., wages and material. S34, 76s l44; for
| taxes, t2,O27, AS, The amount thus returned
to the public in 1906 was $S6 ,6sZ, or 7AS2
per cent
OF the remaining Is Ss per cent there was
paid in hXed charges trent and interesO,
being the hire of moneys and lands not
| owned by the company, So 443.7a6 or iaOa
per cent leaving for dividends 81. 26s, $50 or
1886 per cent. Total gross receipts from
traffic, s4s 500. $50. OF 100 per cent.
Gives Credit 90 All Employee.
| In conclusion, President Fish. who has