The Washington times., 1906-03-18
RAPID GROWTH OF
RAILROAD EARNINGS
Their Progress in Previous Years and Won
derful Increases of Recent
Date Compared

NEW YORK. March 17.-There is aris-
ing considerable discussion over the
large increases being scored by railroads
IN their gross earnings. The open win,
ter has been so largely a factor in the
Increases that IL becomes a question how
much reliance may be placed upon pres
ent unprecedented returns. The most
current instance of extravaganza in
opinions based upon the growth in earn
ings Is the spread of the idea that the
Atehison. Topeka and Santa Fe may
soon increase its common stock divi-
dend from 10 3 per cent Hence il be-
comes important to determine 10 what
extent current large earnings are a true
measure of prosperous conditions and
now great has been the influence Of the
exceptional winter
In the full calendar year OF 1906. re-
suits which have but lately been com
piled. show that gross earnings in
creased SIS. o.0oo upon our 10000 miles
OF railroad. and that net earnings in,
creased about S6O00OOoO. The gain was
Just over S1h per cent in both gross ana
net. and the rate of gain was largest
at the close of the year. In January ana
February OF 1906 the gross earnings thu.
fur reported have Indicated growth OF
about % per cent. In fact, the remark,
bile earnings OF the New York Central
or the month Of February show gain
of $1.IS6.T .Ts0. or p per cent. and the rest
OF our railroads are not behind. In Feb
ruary, 1906. there was a small decrease
-33 per cent-in the gross earnings, al
though in January, 1905, there had been
SO per cent increase. During the
whole year there had not been an in
crease of more than 1873 per cent. which
occurred in December Hence X fs prob
ably fair TO say that possibly one-half
OF present increases are due TO the
weather conditions Traffic has often
previously been tied up to g considerable
extent in January and February.
Earnings Double in Ten Years.
Even allowing for this discounting
OF current returns there is more that is
favorable about the record than has
ever been true before of our railroad re-
suits In accepting this statement II
must be remembered too that continual
and large increases have been scored
for a number OF years Ever since 1896
railroad results have been growing. un-
I'll existing earnings total 81, OBS. 900 900
more than in 1S96-1S97. or Just about
double the figures reported then, when
the large systems were just emerging
from the hands OF receivers In 1902
1903, the gain in gross was larger than
II was last year upon a larger mileage
Hence it is evident that the rate of
increase has formerly been consider
ably larger than in 1906, even though
not quite az great as at present
The growth of 1905 was not confined
TO any one section of the country. All
shared pretty much alike, with the ex-
ception of FIVE railroads, including the
Missouri Pacific, the Chicago and Alton.
and the Wabash. which showed de-
creases- But In net earnings there was
more variation The railroads in the
Northwest scored the greatest gains in
net. gaining about 20 per cent. The
railroads OF the Middle West increased
their gross about half as much as did
those of the Northwest. but made all
most no increase in net earnings. The
southwestern group. which included
the Atchison. of which mention will be
made later. gained only As per cent
and the Southern group only "a per
cent These do not do as well az The
others In gross earnings Atchison
Topeka and Santa Fe made a gain of
1888 $1,000 in gross and $1.274,eOs, or 5
per cent. in net.
The study Of these and the other fr-
ures that go TO make up the record
shows clearly that the time has come
when many railroads can show greater
increases in net than in gross Although
the Northwestern roads are the mosr
prominent examples of this tendency,
there has developed a similar tendency
strongly in the case of the Union Pa
cihc. and somewhat In the Southern
Railway, the Southern Pacific, and the
AtchisOn- Hence runors of possible
dividend increases may refer as much
to contemplated reductions in expenses
as 10 expected increases in gross earn
ings.
The Atchison, Topeka, and Santa. F.
IN the last fiscal year earned 500. .Gs7
more gross than In the fiscal year pre-
ceding, which ended on June 90 1904
Net earnings. however. decreased s3
1852. owing to heavy increases In the
operating expenses, amounting TO sc per
cent, and almost entirely coming under
maintenance OF way and structures and
man ii'ehahce OF equipment As it was
tne company earned SO per cent upon
tle common Stock It was feared al one
'iihe curing the year that the per cent
u-Nioeno winch has been paid ever since
ISoi' would fail OF being earned. al
though IL had been earned more than
Twice over during each OF the previous
three years.
Enormous Gain of Atchison
There has been gain of over s5.ooocoo
In