The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-01-24

100000 bringing the esrnings UP to over
ISL, 900 600, or more than twice the total
gross earnings of eight years ago. While
the showing of net earnings does not show
as large a percentage of gain as in the
gloss, on account of the great increase
in the cost of labor and material in the
past few years, it is nevertheless very
gratifying to stockholders of the COM
pany.
Affiliated Lines.
Not only has the main system of the
company been exceedingly prosperous in
the past few years. but the affiliated lines
of the Southern railway have shown sub
stantial increases in earnings which will
ultimately benefit the holding property.
During the six months ended December
81 last the latest reported gross earnings
of the affiliated lines, with comparisons,
was as follows:
1905 1904
Mobile and Ohio Ito end
Bird week December) ..$4216.333 SO. 966, 322
Gin. N. o. & Tex. Pac.. 97SS,2S1 s,504,1oS
A. G. S. ................. 1,73S,295 l,564,SS5
Ga, South & Fla. to end
of November) .......... T0,563 720,523
The total increase in gross of the four
roads shows an increase over last year of
S752, $3.50 for less than six months. The
acquisition of the majority of the stock
and bonds of the Tennessee Central and
the Nashville Terminal company jointly
with the Illinois Central is also expected
to be a beneficial factor in the develop
ment of the traffic of the Southern sys-
tenn furnishing desirable connections and
terminal facilities at Nashville. and giving
the company an entrance into the CEN
trail and northern Tennessee country.
Through its owned leased controlled
lines the Southern Railway company now
has through lines connecting practically
every important point in the south. From
Washington, Baltimore and Norfolk to
Mobile New Orleans and Memphis 1t has
gridironed the south with a network of
lines, furnishing through transportation
facilities to and between all the larger
cities. BY its control of the Mobile and
Ohio il has an outlet to the north at
ST. Louis, and through its interest in
the "Monon" line 1t has gained an en-
trance to Chicago and Indianapolis Its
east and west line from st. Louis to
Lexington and It's control of the Cincin-
natl, New Orleans and Texas Pacific fur
nish the connecting links between its
northern and southern lines. The strateg-
ical Importance of these northern prop
critics is becoming more and more APP
parent from year to year and the i'm
mense amount of traffic diverted to the
Southern system. on their account Is re-
Elected in the increasing earnings of both
the holding company and the affiliated
properties. At Memphis, Meridian and
Mobile 1t has valuable traffic arrange
ments with western lines, from which
good returns are expected in the way
of increased traffic. This Is particularly
true of It's arrangement with the Frisco
system, through which it Is enabled to
make connections with Kansas City and
other western points It's southwestern
connections are also important from the
standpoint of railway strategy.
Birmingham District.
The lines of the system tap every i'm
portant iron and coal producing section
of the south. In and around the Birming-
ham district it has a veritable network
of lines, and inasmuch as the output of
iron and steel products from the southern
mills will increase at a fabulous rate. the
benefits that will accrue to the Southern
railway apparent. The same is true
of coal and lumber production.
From a strictly investment basis, the
prime consideration in arriving at a true
conception of the value of Southern rail
way securities lies in the marvellous
change that has taken place in the south
In the past few years. 1t is authoritatively
stated that the value of farm lands In
the cotton belt alone in the south has
increased over $1,00O.000,0O0 in the past
two years. This stupendous enhancement
in values of one class of property in so
short time Is due not only to the bump