New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-02
RAILWAYS PROSPEROUS
YER OF RAPID GROWTH.
Diadend and Wage Increases-Neu
Financing.


prosperity for the rail Eays>of the United States a
prosperity reflected in many dividend and wage
increases in enormous expenditures for new equip
sSfIr N the largest amount OF mileage con-
structed I'm any since 1898 and in the shortness
and unimportance of the list of receiverships.
In 1887, the record year for construction, 1900
miles OF new mainline track were laid; in 1888,
71oS miles. The largest total since the latter year
was 5,7ss miles.in 1893. According TO figures COM
piled by 1.-The Railway Age" IN 1908 there
laid 606T miles of track on 1888 roads in forty-four
states and territories. the mileage being larg-
est in tht Southwestern States. 1918. with the
Northwestern and Pacific States next. with totals
OF about fl40 each The construction finished
In the course Of the year just ended would have
been very much larger than the total stated but
for the dearth of labor nnd the inability of the
roads to obtain delivery Of sufficient rails. In Cam
ada, in the United States. there has been great
activity in railway building during the year, the
important construction In the Dominion including
work the Grand Trunk Pacific, contracts for
1900 miles Of the line of which have been let, and
a substantial beginning made with the line OF the
Great Northerns new SYSTEM Little has yet been
done on the Chicago. Milwaukee & st. Paul's
Pacific Coast extension, work on which Is 10 be
pushed with vigor this year and is expected to be
finished within two years. The Western Pacific.
which is to be the Pacific Coast outlet for the
Gould system, has made slow progress in the last
year, owing TO inability to get adequate force
of 1aborers
Orders placed in 1906 for new equipment aggre-
gate 800 locomotives, 10000 freight and 340o
passenger cars representing a total expenditure
OF nearly 100000 The orders for freight cars.
IL is said, will tax the fun capacity of the car
building plants up to September of this year. OF
these cars, 1912, &c per cent, to be built
Of steel or to have steel underframes. This IA
a growth of about 400 per cent compared with
1901 in the proportion of steel part steel
straction The use of frerroof steel passenger
is rapidly increasing The orders placed last
year for locomotives, although less by about FIVE
ROD -nO-i- thar, 10
many engines combining great power and great
weight With the various arrangements Of wheels.
each type Of locomotive has been developed to al
most the limit of load which the track will bear.
Out OF almost 1000 steam railway companies in
the United States representing about 2250oO miles
Of road. only six. the total length OF which is 2i
miles, went into receivers hands account Of
insolvency in 1906 In the last week OF the year a
receiver was appointed for the Mobile. Jackson &
Kansas City Railroad Company. the length Of
which is 40S miles but default had been made
In the payment OF interest the bonded indebted
ness of the company, and the receivers re-
moved on December 81 pending appeal from
the order naming them Of the six companies
referred TO the important the Chicago
Terminal & Transfer Company. the embarrass-
rnent Of which was due TO inability to secure q
sufficient number of tenants. Eight roads. with
an aggregate mileage of 26o sold in fore
closure and reorganzed in 1906 the largest of these
lines being the St. Louis & North Arkansas which
has been reorganized with capital the
twenty roads are row in the hands Of receivers.
The prosperity OF the railways has been reflected
in the advances IN wnges granted by many OF the
roads large and small. and also in the increases IN
dividends voted TO their shareholders The most
notable dividend increase was that of the Union
Pacific, The directors of which had the last pre-
cedng dividend period ordered per cent semi
annual distribution and had been expected to raise
the figure TO 81 IN August, but instead declared
a per cent semi-annuaI dividend. The sudden
advance Of the annual dividend rate from 6 to a
10 per cent basis caused a violent jump OF nearly
thirty points in the price IF the stock. At about
the same tims the first semi-annual dividend Of
2i2 per cent, was declared by the Southern Pacific
in June the Baltimore s. Ohio increased its divI-
dend rate from 10 per cent, and IN the same
month the New York. Ontario Western, on
which IL per cent had been paid in 1906 declared
an annual dividend of per cent On November
the Pennsylvania, which had been paying per
cent, was placed on a Z per cent basis and later
the dividend on the common stock of the Pan
handle road raised from to per cent
yearly; 1212 per cent stock dividend in addition
10 the regular dividend declared by the North
srn Central. another subsidiary and the Pennsyl-
vania COmpanys dividend rate also was advanced.
The New York Central December 5 increased
its annual from TO 6 Der cent the Lake
Shores rate increased from 8 to j per cent
the Michigan Centrars from 10 6 per cent and
the Pittsburg Lake Erie, another Vanderbilt
line, which had been paying 10. went a u per
cent basis The Lehign Valley, which in 1905 paid
per cent, last month declared the regular semi
annual dividend OF per cent and an extra dividend
of per cent Movements had been instituted by
minority stockholders Of the Michigan Central and
the Northern Central with the object Of obtaining
increased dividends In May the minority stock
holders OF the Atlanta & Charlotte Air Line Rail
way. which is controlled by the Southern Railway
organized to prevent the latter from placing a
sl6'00Ooo mortgage on the property unless it would
agree TO raise the dividend. A compromise was
reached few weeks ago. anaer which the present
mortgage is to be extended for three years
The Rock Island Company in January passed its
quarterly dividend of l per cent, which had been
paid regularly from February, 1903. The Chicago
Great Western in the month resumed the
payment of the full semiannual dividend of 21z per
cent on its preferred a stock. after a suspension
since February, 1904. The Fort Worth & Denver
City declared in March the annual dividend of
per cent on the preferred stock. No dividend
was paid in 1906. In April the initial semi-annual
dividend OF per cent declared on the pre-
ferred stock of the Missouri. Kansas & Texas
Vast increases of stock authorized in the
year just ended and great amounts were issued
The stockholders Of the Chicago, Milwaukee e.
ST Paul at their annual meeting last fall author
lied an increase of 100000 each in the common
and preferred stock. The New York Central stock
holders IN April approved the proposal to increase
the authorized capital stock from s15OooOeO0 to
ss5o.6o,oco. The Atchson. Topeka e. Santa Fe d.
rectors in December called a meeting of stock
holders for January 20 to a proposal for
increasing the authorized stock by s9SOooooo TO
100000 and for creating issue Of not more
than s9s, 10000 convertible bonds 1t is proposed
TO offer TO the stockholders subscription when
the plan is ratified. s2 10000 of either the
stock bonds. An increase in the capital
stock Of the Chicago & Northwestern from ST.
6cl.oz5 TO STe04,Soo was authorized by the share
holders in October and in the same month the
Norfolk & Western stockholders voted favorably
a proposition TO issue '$24 10000 Of convertible
bonds and S34.ooo,ooO OF common stock.