The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-11-14
Has Increased Traffic One Hun.
dred Per Cent.
UNDER HILL CONTROL
Several Independent Lines Have
Been Purchased.
Other Items of Interest in Rail-
way Circles.

The New York Chronicle, a financial
paper, in long article discussing the
Burlington report, says:
1t was in 1901 that the Burlington
came under the joint control of the
Great Northern and the Northern Pa
cine. In the year ending June 80, 1901
the road had moved. roughly, $3.50, 900, :
600 ons of freight one mile For 1913
Notwithstanding the loss in traffic be-
cause of business depression the reve-
nue. tonnage transported one mile ag-
gregated $685., S87, 419 tons. This is an
increase of just about 100 per cent for
the seven years. But the fact to which
we wish to direct attention is that this
increase of 100 per cent in transporta-
tlon service was accomplished with an
actual reduction in freight train mile
age, the miles run by the freight trains
in 1908 having been only II, 562, 515 miles,
against Is, 16S, $50 miles in 1901. In
word while in 1901 it was necessary
Ior the freight trains to run 19, los, $50
miles in order to move 1850 900, 900 tons
OF freight one mile, in 1907-08 the trains
moved 6,665, 1887, 419 tons one mile by
running only II, 552, SIS miles The mean
ing, OF this is that each train hauled
correspondingly more tons of freight,
that is, carried a greatly increased load.
In I9OS conditions. of course, were not
propttiouS for obtaining the best oper-
ating results and the average trainload
was reduced somewhat. but neverthe-
less at 379 tons it compares with but
$50 tons in 1901. The result of all this
is that in face of considerable decline
in the average rate received per ton of
freight per mile, the trains have been
able to increase in very marked way
their revenues per mile run. There are
no statistics available to show what
the trains earned per mile in 10000;
in 10000 they earned only $1.96 per
mile run; in 1906-07, on the other hand,
they earned $3.07 per mile run and in
1907-O8, 1902 per mile.
Notwithstanding this striking devel-
opment of operating efficiency and not
W1thstanding tremendous gain in
gross earnings (of which only a rela-
lively small portion was lost in 1909
net earnings the last three years, as
we have already seen. have declined.
Although the result in this case fur
nishes a noteworthy illustration of how
an important railroad system has been
doing rapidly expanding business and
the benefits have accrued not to the
stockholders bat to the communities
served in the lower rates charges for
transportation and to the labOring
classes (to whom most of the expendi-
lures and OUTLAWS of the railroads go
directly or Indirectly in increased
wages and reduced hours of employ
ment.
The company's fixed charges have
been declining. This is because until
the late year its funded debt had been
diminishing. For 1907-08 these fixed
charges, including sinking fund contri-
buttons, aggregated only $7.642,902,
against $s,017,57S for 19O6-O7. But the
company also charged So, 225, 994 to in
come for betterments. After allow
ing for these charges and for per
cent dividends on the company's stock,
a small surplus. namely, $22, 1866, re-
mains on the operations of the II
months. Up to July 1, 1907, the Chicago
Burlington & Quincy railroad had been
leased to an intermediate company
Quincy railway but on the date men
toned that lease was cancelled, and
during the year under review the pro-
perty was operated directly by it's own
been made in the income statement.
Previously it was the practice to de-
duct from available income the inter-
est for the year on the Northern Pa
cific-Great Northern joint c. B. & Q.
collateral per cent bonds $500 of these
bonds having been given in exchange
for every 800 of Burlington stock) but
now the dividends paid Burlington &
Quincy stock are deducted and no men
ton is made of the joint collateral
bonds. AS these dividends are now 8
per cent where before they were only
Z per cent, the dividends suffice to pay
the interest on the bonds and it is i'm
how the item is entered in the
accounts.
1.-The company in November, 1907,
purchased the Sioux City & Western
railroad from Sioux City to Ashland,
Neb., with a branch to O'Neill Neb., |
229 miles, at a cost of SIS, ,708 1t
also spent s7,913,907 for construction
and equipment, making altogether a |
capital outlay of $13, $50, 615, this includ- |
ing the discount on bonds sold. To
obtain the means for this purpose &c. |
900, 900 of general mortgage 4 per cent |
bonds of 1908 were sold. Other bonds, |
however, were purchased or paid off, |
leaving the net increase in the funded |
debt for the IL months only $14, 374 900. |
In 1906-07 there had been an actual de- |
crease in the outstanding funded debt |
in the sum of S., 4S2. 900. At the close of
the previous year. on June 80, 1907, the |
balance sheet showed a small floating |
debt in the shape of 81, 600, 900 bills pay
able. This has evidently all been paid |
off as no corresponding item appears in |
the balance sheet for June 80, 1908"