The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-10-15
SOUTHERN REVENUE
GREATLY REDUCED
Annual Report Shows Decrease
i'll Total Income Of Nearly
9, Two Million Dollars.
MUCH USED IN IMPROVEMENT
Increase in Operating Account
Greater Than Gross Receipts
Gairs-Mucll Double Track.
tine lAccotlnt

According 10 the annual report OF
the Southern Railway for the year
ended June goth last, there was de-
crease in the total income amounting
to $i,66e.306.40 based upon 7,546.Se
miles OF road operated.
When issued yesterday the report
attracted great deal OF interest in
financial and railroad circles The
gross earnings from operation were
$50, 657. 994.39, an increase OF $3,O1G.-
5h572 over the previous year. Opcrat-
ing expenses and taxes were $44,699,-s
2S222 an increase over 1906 OF s4,926.-
1878. Net earnings from operation
were s11.95s,7t2.17, against s13.s6S.-
299.63. the total income. after deduct
ing that from other sources. showing
decrease OF 1862. 30G.49.
IT is OF interest to note from the
above that the increase in operating
expenses and taxes was greater than
the increase In gross receipts, although
large sum- were expended for irnprov-
ing. terminal facilities. equipment and
In laying double track.
When the construction work now
under contract Is completed Southern
hallway will have 2s2 miles of double
track, zoe of which Is In operation.
Operating Conditions.
"The conditions OF operation ourlns !he
report The investment OF new capital In
The construction OF double track. additionaI
ynrds and new lines has increased the nxed
charge upon the revenues OF the company
without securing for the moment an imme-
dlGte corresponding benefit. relief when
can come only with the completion OF inc
new work. 1t Is more apparent every Gay
that this benefit VIII more than onset such
increased fixed charge when the new faciii-
tics are put in operation, as they WIZ De
Ia: gely during the current year
Great as are the burdens upon the opefa-
lion OF railroad to-day by reason OF the
Increased cost OF material of all classes and
the unabatng expectations OF labor on the
one hand. and Legislative reduction OF reYe-
uue and Increased taxes. on the other hand.
the crying need OF the railroads OF the south
Is more track. more equipment more TER
airal facilities. With the strategic position
ana established relations which Southern
Railway Company now has. there would be
no stin; in the amount OF traffic II could
obtain and prof,ably handle II 1t had the
facilities necessary 10 afford TO those who
offer traffic the service they demand Dur
ing the pag, winter there were serious con-
s,stions Of freight on the lines of this COM
peny. which were due. almost without eScep-
ton. to the failure of the plant TO respond
to demands which were made upon II beyond
tt5 capacity. While exasperat!ng the public.
congestion rolls up the expense of operation.
lnd both shipper and carrier suffer.
Some OF the most acute causes OF the
congestion OF the past year VIII happily not
exist another year. The construction OF new
double track. nearing completion. on
for important part OF Southern Railway
traffic the connection over which all bust
ness between It's main system and tho 81
LGEls- Louisville lines Is moved, connec-
ton which last winter was para!yzed. The
recent completion OF the double track on re-
yised grade In the main line between Spen-
Ger. y. c., and Greensboro. y. c.. and the
approaching completion OF double track be-
tween Knoxville. Tenn. and Morristown-
Tenn.-fuuncls through which large volumes
or business are poured--wiIl be further
relief. a saving in almost every element OF
th. expense OF operation. especially overtime
o. labor. fuel and hire of foreign equipment.
The expected completion before January !.
1908. of the double track now under con-
ytruction south Of Lynchburg will have .
similar effect.
THESE facts merely serve 10 illustrate
that the problem OF economical operation
upor Southern Railway lines under existing
conditions is the problem Of providing ad.
rather than behind the demands of busI-s
ness. As more facilities are provided.
greater economies and Increased net earnings
may be expected.
Relations With the Public.
"As a railway must depend for rs pros
perity on the confidence and support OF the
public served by It, the policy OF Southern
Railway Company is to merit the coincidence
serves. Efforts are being made to cultivate
cioGer relations with all the public. and
especially with the men in all lines OF bust
ness who are most directly interested in the
adequacy and efficiency OF transportation
facilities. and to bring about realization
on their part that the company has direct
and vital interes, In the success OF their
individual enterprises and In the prosperity
OF their communities. In all the dealings
OF the company with the public II is the
purpose OF the management to cultivate
spirit of cooperation, TO deal justly with Sill
the patrons OF the company on the basis
of sound business and economic principles.
and to this end particularly special efforts
have been made to bring about courteuos
ana ccnslderate treatment by all employees
0. every person transacting business with
the company. These endenvors hava not
beer, fruitless There Is Increasing evidence
that the thinking people In the territory
served by the Southern Railway appreciate
tho fact that they can only attain the high
est degree OF prosperity IT they are served
by carriers able to increase their facilities
SO as to keep pace with the growing lie
mand for their service. and the fact that In
creased transportation facilities OF much
mere Importance to them than any possible
reduction in charges There Is a growing
public opinion among those who actually,
Use the railways OF the South, In favor Of
legislative and administrative policies that
Will recognize that a railway company is a