The Washington times., 1906-01-28
SOUTHERN RAILWAYS
fSHOW GOOD PROGRESS
Their Development of Recent Years Beginning to En-
hance the Holdings Attractive Investments
Modemzing All the Roads.

| ture, in. the annual report of 1903 The
st. Louis Southwestern consists OF the
railway company of that name and of
the 81. Louis Southwestern railway of
Texas Each comprises about one-h half
OF the system But of the Texas mile
age there was in 1903 only about one
haf as much ballasted as Of the mile
age outside of Texas and there was the
same proportion of heavy rails in the
track As result the train load Of the
eompany's traies outside OF that State
Increased. between 1900 and 1903, from
2S2 tons to Ss4 tons per train and the
train load in Texas increased from 14s
tons TO 167 tons. In consequence of this
condition the Texas mileage did not
earn hxed charges while the rest of the
road earned a surplus.
AS Attractive Investments.
This showing made evident the ad-
vantage to follow still further modern
| izing. The Cotton Belt route has.
| therefore. never since shown as large
surplus earnings as during 1901. !t is
| natural. however, after so many years
| of large expenditures, that the revival
OF great business activity now in prog
ress should ind many investors ready
To believe that these long backward
railroads OF the South and the South
west must soon begin 20 duplicate the
successes OF their more prosperous
Northern competitors. AS dividends
upon some OF the stocks in question ap-
pear more probable. their investment
attractiveness becomes greater. and
their prices rise, because of a change
in sentiment toward them, more ex-
tensively than they have risen during
a long priod OF increasing earnings.
The Missouri. Kansas, and Texas
Railroad has had an experience about
like the rest, and has long been labor
ing under fhe handicap Of inadequate
funds TO Put its structure In shape. and
Of poor credit for borrowing The COM
pany. however. announces this week.
that its improved credit has enabled il
| to secure the capital required upon
| favorable terms and that now IL can
proceed rapidly with the rehabilitation
of the older part of the railway, which
has been so long deferred The plan
included the Issue OF $40. .OO0. 900 out OF
an authorized total OF $4,000, 600 of
4 u per cent bonds. and the money is
to be used for the retirement Of the
outstanding equipment notes and
bonds. of which there are about $4,-
! J90 900. and for reformation of align
ment. reduction Of grades. and provid-
ing for otherwise speedily putting the
property in condition for more eco
nomical operation.
The annual report of the Missouri,
Kansas and Texas said that in the
event of the improving credit Of the
company allowing OF any such capt.
tai issue as has been announced. the
consideration of the question OF dis
tTibuting a part Of the annual revenues
might be opportune. This plainly re-
ferred TO the possibility of dividend
payments upon the preferred stock and
the recent bond Issue plainly removes
the obstacle 10 their speedy beginning.
There is no question but that through
out the list OF low priced railway secu-
rifles there is the same general tangi-
BILE shape in most cases as in that of
the Missouri, Kansas and Texas Never
theless II must not be forgotten that
even this road was not overpromising
OF dividends not long ago, and that its
prominence now is due solely 10 the
improved business situation. Investors
should not view too lightly the GER
tainty OF Ike progress IN kindred prop
critics.
BARNABY.