The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-02
PRESIDENT STEVENS
RETURNS QUITE I'LL
Made an inspection Trip Over
the Entire Chesapeake
and Ohio System.
THE DIRECTORATE CHANGES
Pennsylvania and New York Cen
trail Representatives Leave
the Board.

lllS DDdlN.
President George w. Stevens, of the
Chesapeake and Ohio Railway Com
rany, returned to Richmond last night
after trip over the entire system
under his control. AR. Stevens says
he found everything in excellent shape,
and was much pleased with the In
spcction tour.
He returned here quite III, however,
suffering from bronchitis and a high
fever, and is now confined to his house
under the care OF his physician DR..
Lawrence Price
The Chesapeake and Ohio. along
With all the other roads OF the coun
try. Is reducing expenses in all direc
tions. and cutting off all improve
ments that are not absolutely neces-
sary. although under It's new man
taGement the future of the road looks
better than 1t has ever done.
New Directors.
The election OF Thomas 2. Fowler
and Walter G. Oakman as directors of
the Chesapeake and Ohio may be said
tc mark the beginning of new era
In that company's history, declared the
Wall Street Journal In a recent Issue.
The first era in which the present
stakeholder is particularly interested
was the decade of ruinous competition
of the 90s among the soft coal roads.
The second began with the purchase
by the Pennsylvania of large blocks of
stock In the three other principal soft
coal carriers and the consequent con-
troll OF freight rates. The close Of
this second era was foreshadowed
nearly year ago in the sale of the
Pennsylvania's holding Of Chesapeake
and Ohio. It is semi -ofilcially admitted
"a ha pao ocyyl,, o,,{o =,
to retire from the board, but 1t is
curious situation that the New York
Central which is not supposed to have
sold Its stock, has withdrawn two OF
Its representatives in advance Of any
such move on the part of the Penn
sylvania. The Pennsylvania, OF course,
no longer has Its former excuse for
lis presence on the board OF another
soft coal road, and 1t is only a matter
OF time when there will be further ex-
tens!ve changes in the Chesapeake and
Ohio directory.
For the past five or six years the
Chesapeake and Ohio board has been
an extremely close organization. little
happy family Of Pennsylvania and
Vanderbilt interests. Just what siGni-.
fcance. If any. the identity of$the two
new directors has is not quite clear
W. G. Oaknan Is known chiefly as an
active director in New York rapid
transit corporations. among them the
gh-Metropolitan. the Inter-.
borough Rapid Transit and the Nc
Adoo tunnel companies. Thomas P.
Fowler, aside from his position in the
Ontario and Western, is likewise di-
rector in the Interborou gh- etropoli-
tan Company From these incidents 1T
might be argued either that the Bel-
mont firm had again turned IT'S atten-
ton to the railroad field, or more
plausibly. that Thomas F. Ryan, had
entered another Southern railroad, and
one In which his own State of Virginia
is vitality Interested. On the other
hand, the new directors do not necas-
sarily represent any other interests
than the kuhn-Loeb holdings taken
over from the Pennsylvania. In any
case these changes are the beginning
of wider capital interest In the Chesa-
peake and Ohio. which means an era
Of greater Independence for the man
lagement
The history Of the Chesapeake and
Ohio since the beginning OF the dual
control by, the Vanderbilt and Penn
sylvania interests is one ofgquiet and
moderate progress toward, greater earn
ing power. There is much. less Of that
strkingly rapid rise from bankruptcy
to riches than has characterized the
history or many anOLHeT5 <AlIleIlCdu Ill
road in the same period, soft coal roads
among them.
Thissis largely due to the fact that
| the company's gain in annual earn
ings is due less to expansion OF. ter
ritory, or even to the Intensive de-
velopment OF that territory, than to
Increased freight rates. In 1901 the
Chesapeake and Ohio's receipts per ton
mile on coal were 2.72 mills; in 1906
they were 3.27 mills. The rate. on
other freight averaged 5.25 mills per
ton mile In 1901, and 5.s3 mills in
1906. Whereas It's net earnings have
Increased 60 per cent. in six years. its
freight traffic has increased buts61 per
cent. and its passenger traffic, less than
4O.per. cent.
If the Chesapeake and Ohio might
have been administered with greater
nggressiyeness. it must also be adj
mitted that It's finances have been
carefully managed, SO that to-day It's
annual surplus over charges is prac-
tically twice what 1t was at the be-
ginning OF the second era Taking the
estimated figures for the present rs
cal years income, 1t compares with
that of 1901 as follows:
1907. 1901. Inc
Mileago... l,s27 1906 sal
1 Cross ..S2576S 70O six a71Fs 41 s1o oo7 "a