The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1907-01-18
PRESIDENT THOMAS
ON R. R. PROBLEMS
OUTLINES POLICY TO MEET NEW
CONDITIONS CONFRONTING
THE CARRIERS.

PHILADELPHIA, Jan. 1S.-Presi-
dent E. b. Thomas. of the Lehigh val
ley Railroad Company. in his address
to the annual stockholders meeting
here. after reviewing the great i'm
provement in the company's financial
position under the present manage
ment gave his views on the present
situation OF the railroads and their re-
lations with the public. Mr.. Thomas
said:
Eat a time when there is SO much
uncertainty us to the future cost Of
operation. and the effect Of recent
laws, your board believes conserva.
tive policy In the matter of dividends
is to the best interest of the stock;
holders. The labor situation is unset.
tied. Heavy demands have been made
on the company for shorter hours and
increased cost of living and higher
rates Of wages paid by others, many
of which have been granted where a
fair and impartial review of the situa-
tion indicated the necessity of SO do
ing. This will have its effect in tend.
ing to increase teh future expense of
operation. The shortage of freight
equipment cars, which is everywhere
engrossing the attention of both rail.
road officials and the general public,
Is one that must be dealt with broad.
ly in order to carry on the continued
prosperity Of the country.
Demand For Cars Must Be Met.
"The total tonnage transported by
this company during the last year
amounted. in round Numbers, 10 u.s.
100000 tons. OF this amount, 10000
600 originated from the mines and fac.
tories on Its own line. 1t is duty
we owe the public to, at all times. sup
ply reasonable amount of equipment
for this traffic. The general shortage
in freight car equipment throughout
the country has prevented our fully
supplying these industries during the
last few months to the extent they
are entitled, and 1t is incumbent upon
this company, Notwithstanding its
large equipment, to further increase
IL in order to protect the industries
located on its line.
st must be borne in mind that the
business Of producing anthracite coal
Is not alone u mining proposition, but
a manufacturing and commercial and
commercial undertaking as we'll. The
combined gross business Of the rail-
road and coal companies is over $685.
100000 per annum, and to provide am.
pile working capital, as well as to meet
expenditures for current improve
nents as they become due, it is nee
essary to have ample cash balance
constantly at the company's disposal,
even though the cost Of such work Is
not included in operating expenses.
but is ultimately charged to Capital
account and provided for by the Issue
of securities.
Public Confidence Necessary.
at the railroads of this country are
to be successful and their securities
are to become desirable Investments,
the physical homogeneous OF the prop
critics must appeal to the public sense
as satisfying reasonable requirements
and their financial operations must
command the confidence OF investors.
1t Is to that class this management ap.
peals. They are the class by whom
the bulk of this company's securities
are held, the speculative holders be.
ing comparatively few, and 1t is to
the conservative investing class who
believe in this property as means
of investing their funds, that his man.
agement looks for support.
at is the belief OF the management
that It has had, and still has the con.
fidence of this class, and the fact that
they have had confidence in the prop
erty and in the management is indi.
Gated by the few changes in the stock.
holders for many years, both during
the period when no dividends were
paid and at the present time when the
market value of the stock has been
SO considerably enhanced by, the in.
creased earnings and better financial
. a & "a &
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