New-York tribune., 1909-01-19


srrras hs,ors common dividend equal es2 cent
80 fIs outstanding common STOCK eqhai 10 -0'-
Ss- ser, for the tscsl year
A. This same rate of earnings the 800" could
.1r nav an additional per cent on its total out
.-.,5ing common stock for the current fiscal year
.,s al the same time have left a surplus OF more
So, a. gglaO0O 10 be carried profit and loss
TseS for improvements
=. fsct that excellent climatic conditions pre-
.rrAs tn the first FIVE months Of the fiscal year
vas doubtless an important factor in the favorable
,Thihst made and il should be remembered that
n is in the next few months each year that the
sSoo- experiences its seEerest hardships- In some
wears heretofore. in the winter and early spring
r,onths certain portions Of the conpany's road
have heen so pied I'D with TO cause a
corplete temporary suspension Of operations It
was IN those months that the 500 made its poor
est showing Of the year However, IL is not 10 be
reasonably expected that the handsome returns al
ready shown By The company thus far in the cur
rent fiscal year viii be pulled down in possible
ing unpropitious months 10 an extent sufficient TO
render per cent increase in the junior issue div
dend unwa-ranted.
An Increase Of per cent in the ''Soos'' common
stock d-idend will only benefit individual hold
Of this class Of the cOmpanys security but will
cid 10 some extent il swelling the Canadian Pa
cAcs surplus for the current fiscal year. The
mon and S2Neoo preferred stock of the 500"
company On March Il 1908 II will be recalled the
Soc" COMMON stock dividend raised from
per cent 10 z per cent per annum basis There
fore with per cent more than the prevailing rate
paid on the JUgor issue Of the 500" II would mean
Increase ii the Canadian Pacific's annual reve-
nDe from this source Of about $500 90 the
fiscal period The present earnings Of the Canadian
Pacific are a. the rate Of little better than Il per
cent a year.
Inc 'soo's showing thus far in the current
hsea year has been highly satisfactory one. In
November gross earnings increased nearly $4,000
q tN per cent while net earnings expanded s596sS,
Or S& per cent. For the five months ended No
re-esr % the gain in gross was over SE5.O1o, or
u PEI cent, which was further augmented by
szsstztisl curtaiaent in operating expenses 70 an
e19snsien Of more than S7o0o0 30 - per cent
Eel as compared with the corresponding period of
n The saving in expenses for November was
vel above $3.50 or 1855 per cent and for the
November operating ratio TO gross was 50I5 per
cert, ana FOR the five months 5154 per cent both
q which several points below the ratios of
large majority Of other companies for the CORE
tponding periods
Totals CT the 800 s. Interstate Commerce Com
Eisston reports DO not quite agree with those OF
TIE monthly statements issued TO the public There
Is close az approximation, however to render
Il possible 10 gain fair idea OF through what
Uedium the bulk Of the expense cUTtaiiment was
Of earnings clearly reflected pronounced improve
Eent II operating efficiency, the reduction in trans
po-tsilon expenses alone being S222 J02, while the
5esI cut IN all maintenance disbursements was but
EasP
Maintenance allowances for the five months end
60 November - last the only items OF expense
oces TO criticism. They we're extremely low IN
proportion 10 the volume ot gross business handed
oy the company Tor that period maintenance OF
way and structures eQualltng only 979 per cent
and maintenance OF equipment esS per cent OF gross
earnings. The exceptionally favorable feature,
however. the fact that the transportation eX-
pe5ses we're well below the majority Of companies
L proportion the gross returns. being only S-ll
per cart. In other words for every dollars worth
O. business handled by the company foT the nVe
aonihs reviewed the cost was only trihe more
thar .