Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-03-16
Railroad Earnings and Hard Times

None will contend that the great |
railways and other transportation in
terests of the country were not hard
hit by the commercial, financial and
industrial depression which came upon
the country in the closing months of
1907, but some of the completed annual
reports of railway operations for 1907,
now being made public, serve to eX-
pose the artificiality of the cry about
the ruinous effect of so-called hostile
Legislation. The reports just made by
the Pennsylvania and by the Delaware,
Lackawanna & Western furnish decid
eddy interesting reading. The Railway
Age, which has never been accused of
presenting railway matters in a light
unfavorable to the corporations, in
discussing the Lackawanna's report,
says:
THE great earning power and low
capitalization of the Delaware, Lacka-
wanna & Western, giving it unique
position among the large railways of
the country. receive new emphasis in
the annual report for 1907. Earnings
were the largest in the history of the
company, and from the treasury re-
sources all but SIS 900, which were not
presented, OF the $3,067 900 first mort
gage Z per cent bonds, maturing on
Sept. l last, were paid. Outside of
this small unpaid amount the outstand-
ing capital obligations of the company
are limited by its $26,20O,000 capital
stock, although it is, of course, respon-
sible for heavy rentals under the
terms of its leases of subsidiary prop
critics.
THE 1907 surplus is equal to 1875
per cent on the capital stock, and this
figure added to the 20 per cent divi-
dends paid, indicates total earnings ap-
| plicable to the stock of 3S.5 per cent
So remarkable showing in a year
not only of high costs. but also toward
the close, of declining traffic, was made
in spite of many combating influences
which President w. H. Truesdale dis
cusses in his customary lucid style"
The :'customary lucid style" REFER
red to by the Railway Age Is shown in
President Truesdaie's address to the
stockholders of the company, in which
he declares that 1T is plainly the plan
and purpose of botn the great political
parties to make the great railway in
terests and the large investments in
| them the pawns in their game of pol
itics." Without reference to the merits
of the charge, a net profit of 3S.5 per
cent would seem to be enough to sat
isfy investors and should be cheering
to managers and officials
The Pennsylvania report, again
lquoting from the Railway Age. shows
gross earnings which for the first time
passed the $150,0OO,0OO mark" The to-
tai net income was $5S, 999, 5S4, as com
pared with $59,21S,50O in 1906, and $52,
56S,500 in 1905. When it is remem
bered that 1906 was the most prosper
Gus year in the history of American
railroads, the showing for 1907 mus
be considered highly gratifying The
net earnings of the company available
{ for dividends were something in ex
cess of 10 per cent on the enormous
capitalization of $315, 100000. Aftel
dividing $21,90S,436 for 1907, an in
crease of more than $2,OOO,OOO owe
the 1906 dividend, the company has
surplus of $11 $685.
The president of the Pennsylvania
also joins Mr.. Truesdale in lamentin;
the attitude of congress and the legis
latures toward railways. In the mean
time the railroads appear to be dcin;
5 tolerably we'll