Goldsboro weekly argus., 1908-12-10
A. C. |. RAILROAD REPORT.
Comprehensive Presentation of Ger
ditions Calculated to Test the
Strength of ANY Corporation.

During the last two fiscal years the
Atlantic Coast Line Railroad Company
was subjected to conditions such as to
test the strength and endurance of the
soundest properties. We say 1.-TWO"
years because, while business depress-
ion did not come until the latter year
in the year preceding the Atlantic Coasi
Line, like the other leading Southern
systems, only perhaps little more SO,
suffered from adverse circumstances
and conditions which in their way
were quite as severe as those exper-
fenced in 19U7-OS. 1t is necessary to-
take the two years together i'll order to
appreciate the full extent of the strain
winch had to be met and endured.
Comparing the results of 1907 -oS
" til those of 1906-07, the changes are
not SO very striking (although when
the year is segregated into parts some
differ ences OF quite considerable mag
nitude are revealed, to which we shall
presently refer) but when the compar-
isop is extended year further back
the chance are seen to be very note
worthy, particularly in the case OF the
net earnings, where the shrinkage has
been of large magnitude. If,when the
period OF decline in net income began,
the company had not been SO we'll cir
cumstanced in the matter of net in
come-that is if there had not been 5;
large margin OF income above the re-
quirements for charges and dividends
it would not have been possible for
it to have passed so creditably through
the lean period since experienced.
In reviewing the report Tor the pre-
vious year, we pointed out that this
report revealed to what an unfortunate
state solthern roads had been reduced
under the many adverse circumstance
against which they were obliged t.
contend. The progress Of the system
we showed, had not been checked a
far as continued grow tn in traffic an
gross income were concerned, but OF
the other hand, operating cost had III
creased to such an extent that the aug
mentation in expenses was far outrun
ming the gains in gross earnings. II
addition, the legislatures of the differ
ent Southern States were further i'm
pairing the prospect and outlook by
reduing rates, and in other ways in
creasing the difficulties under which
railroad affairs were conducted.
Stated briefly, gross earnings in that
fiscal year had been added to in am ouni
of 81 ,9O3 $50, but expenses and taxe>
had moved up no less than 50, ,549, 1927,
thus causing an actual loss in net in
come of 81, ,646, TAT. In the year be
fore that Q9O5-O6,) with So, ,645, $40 gair
in gross, there had been 81, ,702, 432 in
crease in expenses. Hence, for these
two earlier years com bined, while gross,
had risen from $22, ,222 1902 to $26,771,
529, net earnings had fallen away from
IS, ,O3s. 1875 to $s,329, ,5O2. The augmen-
Iatlon u expenses occurred in face OF
increased economy and efficiency OF
operation. being duo entirely to cir
0umstances en- irely beyond the con-
troll OF the m tnagers, such as higher
wages and an enhanced cost of ma
terials, fuel, supplies and everything
else appertaining to the operations OF
a railroad-also the extra burdens i'm
posed by the State legislatures and
railroad commissions.
T. is was the situation before the
year under review opened and before
the depression in business had come
and overwhelmed the whole country
AS consequence of this depression
instead of gain in gross earnings, ,sucl
as had distinguished all the preceding
years, we have for 19Q7-08 loss. A
the same time, the company found it
self unable to reduce expenses to a like
extent, and hence there is turthe
decrease in net income on top of thu
exceptionally heavy losses sustained
in the two previous years. 1t is un
fortunately impossible to indicate th'
precise ex tent of the changes betwee1
1907 Os and 1906 OF, owing to the fac
that on July l, 1907, the new classifi
ttions OF revenues and expenses pro
nulg~ted by the Interstate Commerc
Commission became effective, and tn
figures for the latest year are on tn
basis of these new cfassifications, ,whil
those for the previous year were Rase'
on the classifications in effect prior t.
July 1, 1907. Taking the figures, how
ever, just As they stand, there is de
crease by $742, ,476 in gross. Offset by
reduction Of 1898. 1882 in operating ex
penses and taxes, leaving a loss c
S344, PA in net to be added to the losse
of the two previous years. The com
pany's annual requirements for div
dends and interest have been slowl
rising with the additions to stock an