The Birmingham age-herald., 1907-03-18

equate in 1902 are altogether inadequate in 1906, to such an extent that it is with the greatest difficulty that traffic is han dled. To relieve the pressure and the congestion on the line it was imperative that every effort be made by the lessee company to improve conditions respecting the replacing of light bridges; with heavier structures; double track where possible: extend and put in new side and passing tracks: increase and improve ter minals. The company was compelled To make in two years improvements that or dinarily would not have been considered for years to come This company is try ing to do it's part, and is perfectly willing to strain every energy to make these in- provements in the shortest space of time possible. but they must have money to do this with If it's rates are reduced and it's revenues depleted, the company cannot push their Improvements. This is not said with any selfish motive. While the lessee company will benefit no doubt, by the improved facilities, the city of Gin cinnati is also gainer; because, as stated before and as provided for by the lease, every permanent improvement made by the lessee company reverts to the city of Cincinnati.
 What has been done with the earn ings? They have not been applied to diVl- dends. Up to July 1, 1899 (eighteen years) the dividends paid were $525000. approxi- mately at the rate of 1 per cent per Sl- num- It was not until June 1, 1902, that income account began to be charged anew with dividends and then, at first, on the So 900 900 of preferred stock. It was 1905 before common stockholders began to re- eeive any new dividends from their in- vestment. Since then they have received ] per cent per annum on their holdings. For the first eighteen years these stock nP nor annum. and for the next six years noth- ing So dividends have not absorbed earnings. What, then, have become Of them?
 Where the Money Has Gone.
 .'All the tunnels have been arched with brick and stone. where required, amount ing to about four miles of tunnels; some of the largest bridges on the road, like the Green river the Cumberland river and New river, and many other large bridges, have been entirely replaced with heavier structures: and in many others new spans have been placed The side yard and nassine tracks have increased from 1O.S miles in 1881 to 292 .s7 miles in 1906; the entire road from Cincinnati to Chatta- nooga, 336 miles, is now protected by an electric block system. The line IS now equipped with 70 and S5-pound steel rail, in place of 5S-pound iron and 6o-pound steel, when the lease was made
 All these permanent improvements made at the expense of the company, re- vert to the city at the end of the lease, and are absolutely necessary to conform to the provisions of the lease"
 A Comparison.
 MT Murphy then submits compara- tive table showing the cost of material and eouipment The table makes com parisons between prices in 1896 and 1906. Locomotives show an increase of b4.64 per cent in cost; passenger cars. 53.S5 per cent: box cars, TIT per cent fiat cars, 13333 per cent: gondolas, 100 per cent; lumber per thousand, 75 per cent; rails, per ton 45 per cent; ties, 60.S0 per cent.
 Continuing, he says:
 Notwithstanding these enormous in- creases in prices the company has large ly inore ased it's equipment in its efforts to meet the demand of increased busi- ness. Thus:
 'I.ocomotive engines in service in lS96, 109: In 19O6 174-increase, 59.63 per cent; passenger equipment in service in 1896, 6a: in 1906, S5-an increase of 7.10 per cent fre.ght equipment in service in 1886, 397s; in service in 1907, 11,5S0-an increase Of 191 03 per cent.
 An examination of the traffic results that come from this increased expendi- ture is of great interest and is as fol- lows, viz:
 Passengers carried in 1896. 732 453; in 1906, 1,3lS304-an increase of SO0I per cent.
 .'Tons of freight carried in 1SsS, 2,32s 624;