Daily press. [volume] (Newport News, Va.) 1896-current, 1907-06-25
Year Will be Successful One for
Company.
LOSSES IN FIRST MINIS MONTHS
Management Has Succeeded in Put
ting an End to lnroads That Higher
Wages and Advances in Prices
Have Been Making in Earnings.

Late earnings OF the chesapeake &
Ohio Railway Co. have a tendency to
show that the management of this
system las succeeded in putting an
end to the nroads that higher wages
ana advances IN prices have been
making upon the net earnings. For
the first nine months of the present
fiscal year the net indicated loss
of about $600.000. which was discour-
aging. to say the least
Considering the latest reports OF
earnings the road should show, when
the income account is made up, about
per cent earned on the stock This
means that all charges, taxes and
other deductions for the year allow
for an increase in the bonded debt
and equipment obligations, and for
the cessation of losses on the opera
ticn of the Chesapeake & Ohio Steam
ship Line
The great changes that have taluen
place in the railroad affairs of the
United States during n trine more
than two wars striklngly are empha-
sized by the independent position OF
the Chesapeake e Ohio In 1905
Wall Street heard talk of n plot on
the part of the Gates and Hawley in
terests to secure first the Cincinnati
Hamilton & nayon and then the Chos-
apeake G Ohio, with the ostensible
purpose Of uniting them to form 4
through line from Chicago TO tide.
water. Wall Streets estimate of this
plan was that it in reality contem-
plated sale of the two properties
separately to one or more OF the
trunk lines, under threat of an ag-
gressve rate war. Today control OF
the Chesaneako g. Ohio is in the mar
kes in much more practical sense
thnn IL HIS ever been for wears past
We, the financial community is dis
turhed by no fears of stock mar
ket raid to seize control On the
contrary, If It has any fears they are
that large blocks of the stock may be
hanging over the market.
The Chesapeake & Ohio stock sold
nv tho PENNSYLVANIA Railroad to New
York bankers had par value OF
more than s150O0OO0. The New York
Central's interest is not given off,
cialy with any exactness. but it ap.
pears to be or to have been. about
S11,00O000 par value. Thus until
the Pennsylvania decided to take
profits. not less than al per cent of
all the Chesapeake G Ohio stock was
tied up In the treasures of the two
trunk lines. The question of the
hour in regard TO Chesapeake & Ohio
is what is to become of this practical
w dominating proportion of its stock.
II Is of little consequence whether
the New York Central has already
sold its holdings or not; it was safe
to assume tho moment the PenESvl-
vania's sale OF it's stock was an
bounced that II was on tho cards for
tho New York Central to do likewise
Tho Pennsylvania holdings went
To banking firm affiliated with TINT
railroad, and 1t is understood that
tbe sole OF Now York Ccntral's hold
inge when 1t IS ACCOMPLISHED will be
carried out by a similar plan. Thus
the situation Is TINT the two largest
blocks nf Chesapeake G. Ohio stock.
witch together would mean effective
control. are in the hands of two
banking houses. It is not to be sup
posed that all of such stock will re-
main there. md in this connection It
is pertinent to recall that tho bank.
ing house to which the Pennsyl
vania's holdings were sold has taken
the position that II is improper. for
active bankers to servo as directors
of roads with which their firms may
have business relations.
Chesapeake & Ohio is today the
most available, almost the only. east
ern seahoard connection for any rail
road system of the middle West The
Cincinnati Hamilton e Dayton offers
it an excellent distributing system