The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-11-07
Financial Losses of New Iowa
Lines Real Cause of Fight.
EACH SIDE STANDS PAT
Story of Early History of Com
tested Property.
Gossip and Matters of Interest
in Railroad Circles.


for the fight between Mr.. Fish Of the
Illinois Central and Mr.. Hartman has
come to light. This always has been a
mystery to the world at large. Some
persons claimed that Mr.. Hartman
had become tired of running a railroad
from Newport and that he thought-the
president of such a system as that Of
the Illinois Central should have his
desk at the nerve center of operation.
These things may have been on
tributory to the downfall OF Mr.. Fish,
but today it developed hat the origin
of the differences between Mr.. Fish on
the one hand and Mr.. Hartman. Mr..
Harahan, and the other directors. on
the other, date back seven a to the
time when the so-called Omaha
tension" from Fort Dodge. Ia, to
Omaha was projected.
Mr.. Fish. it is said, constructed his
line against the advice and wishes of
everybody connected in a capacity of
Importance with the road The results
have not INDICATED his judgment The
extension has proved a losing venture
from the start. Millions of dollars
have been poured into it, but instead
of increasing the profits of the Iowa
lines it has turned them from
producers into deficit producers
L dL II aAlA L4AAAo Aoo O--~ @
competition with the Chicago and
Northwestern and the Chicago, Mil
waukee and st. Paul. and has caused
reductions of revenu to them COM
binedWith the direct losses sustained
by the Illinois Central, this, 1t is said,
is the chief cause of the estrangemenL
from Mr.. Fish of h Vanderbilt IN
terests, which control the Northwest
ern and which are represented on the
Illinois Central directorate by Cor
nelius Vanderbilt, and of the
Oil interests, which control the 81
Paul, and which are backing MI Har-
riman in the present contest
Harahan Against the Project.
Mr.. Harahan is said to have been
particularly vigorous in opposing the
extension to Omaha. There were then
five lines between Chicago and Oma-
ha=the Burlington, Northwestern,
Rock Island, Wabash and ST. raul
besides the Missouri Pacific line from
st. Louis. It was contended that there
was not enough business from Omaha
and the tributary territory to pay
these roads, and that the construction
Of another line to that city would only
injure the roads already entering 1t
and the result in loss toethe one build
ing the extension.
Mr. Fish. however, took a different
view. He believed a line to Omaha,
bywSerVang as q feeder to the rest OF
the system, would be highly profitable,
I MI lE a la O. AAC
which is 131 miles long, was built at
an initial cost Of $4,000, 600, and was
opened for operation in 1900. The
expenditures on the Iowa ines since
1899. mainly for the Omaha extension,
have exceeded $4,000, 600.
The results lave only too completely
indicated the position of those who
opposed the building of the extension.
The Illinois Centrals main line from
Chicago to Fort Dodge, Ia, had been
g. -.I -@o-n+4nn a h-rrf F1-4r-
years. It's line to Sioux City and most
/ of its other lines in Iowa were almost
IsequalLv oIdkrThey had been put on a
+ paying basis and during the year end
ed~J9n6 Sc 1899, the last before the
operation Of trains over the extension
began. they paid a profit Of $594,294.
or about 8 per cent on the investment.
New Line Brings Loss OF Income.
From the day the operation of the
extension began the net income Of the
Iowa lines has declined. During the
year ended June 80, 1900, their net
earnings fell+to $3.50, 900, despite the
increased investment OF $4,000, 600. In
1901 these net earnings were $109,-
600, in 1902 $105s 900. In the year end
ded III 80 1903, the Iowa lines show
ed an absolute loss of 1903, 900, and in
the year ended June 80, 1904, a loss
of $751,334. Adding This to the pro-
fits of 1894, 600, which they earned in
1899, gives a total loss to the stock
I LlOl4E42 III 11O1 u 10 1UsQVV.
The Iowa lines did better in the year
ended June 80, 1905. but even then they
showed a loss of 363,5e7 The figures
for the last fiscal year are~not available.
but it is said they show Improvement.
One reason for the heavy decline in
the ne earnings of the Iowa lines is
made clear by a comparison between
the increase which has taken place
since the construction of the Omaha
extension in operating expenses and in
extension in operating expenses and IN
gross income. Between 1890 and 1904 gross
income. Between 1890 and 1904 gross
802, $50, or $S47. 900. Meantime operating
expenses increased from $3.50 to 49,
613. $50, or almost $2,000,000
The new llne had to be kept in good
condition. whether it earned anything OF
not. It had to ave enough trains, pas
senger and freight, run over it to meet
competition. And so money has been
poured into 1t like water into a rat
hole-and the returns have not been
much more satisfactory than they COM
monty are from this latter operation.
Mr.. Fish has been much blamed for
the results of the extension to Omaha.
1t has given his enemies seemingly good
ground for criticising his judgment both
as q railroad operator and as a fnan-
full. It has given Mr.. Hartman a
strong argument. which he has not
failed to employ in his attempts to get
his fellow directors to turn the Illinois
Central over to his management.
cuts Into Income Of Other Roads.
What perhaps has Influenced some OF
the directors against Mr. Fish even
more than the losses by the Omaha ex-
tension is the extent to which it has
cut into the business of other roads In
which they have Investments 1t has
affected the Northwestern, in which Mr.
Vanderbilt is largely interested. more
than any other line. It has got a good
deal of business away from that as vel
r as other lines between Chicago anc
: Omaha, and It has hurt the Northwest
ern In another way.
The Northwestern controls the Chi
2 cago. St. Paul. Minneapolis and Omahs
railway. This line formerly had the bull
4 of the ranie between Omaha and th'
q twin cities. After the construction Of ths