The Washington herald., 1909-10-17

The Southern Railway has made graft
flying progress IN recovering from the ef-
feets Of the business depression OF 1907
and 1903, according to the annual re-
port Of President W. W. Finley. which
has just been made public.
As e result Of policies Of operating eff
cheney. which were initiated after tho
panic Of 1907 great benefits have accrued
20 the company, the report says. Not
the least important Of these was the
great reduction in the cost Of operation,
which for the year ended June 80, 1909.
amounted 70 6S-16 per cent, against 7479
per cent In the preceding year.
Operating costs have always been high
on this system. and it is encouraging to
note that the ratio has been so mate
rally lowered. AS the operating revenue
increased lis per cent when figured on
the mileage basis the decrease Of 80
per cent in operating expenses is a
promising exhibit, especially when 1t APP
pears that $50 per cent Of Il was saved
in transportation expenses and that the
physical condition OF roadbed and equip
ment was not allowed to deterioriate.
Income Slightly Disappointing.
On its face the income account is dis
appointing because Of the Indicated loss
Of $75S,6CS in gross operating revenue,
compared with the previous year. but
careful study Of the figures shows that
shrinkage TO be more apparent than real.
for the reason that the revenues Of the
Tennessee Central Railroad COMPANY
and the Southern Railway IN Mississippi
included IN the report or 1908. are eX-
cluded fSom the 1853 report. these two
lines having been operated separately.
The mileage covered by the report IS
7.l70. a decrease Of 31S miles: and on a
mileage-earning basis the showing Is
very fair. being S.27S a mile 81 1903, as
compared with S722S IN 1905 and 1901 in
1907. the companys banner year. The
change in mileage eomplicates the hgur-
Ing Of comparisons.
During the last fiscal year the man
a gement cut down operating expenses
TO SIS 56S,SS0 a saving OF $4.2S5.71; leaving
net operating revenue OF Sl6.6ls,12e,
gain Of SS,5S2. 1Sl. The changes in outside
operations, other income account. taxes.
and other deductions Offset one another
closely.
Interest on Funded Debt.
Interest on the funded debt amounted
TO S11OS7.7S0. an increase Of soc, ls7. and
this is the most unfavorable factor in
the statement OF the company. Only
S7S.2S5, 81. 40 less than in the previous
lean year, was allowed for betterments,
and the net result was a profit and loss
surplus for the year, OF S3.5l1. 100 a gain
Of &C. .e57 over the previous year. when
the company barely broke even. This
would have made a nice addition 10 the
total profit and loss surplus. 10 which
sS46,22 was also added in the shape 81
for the cost Of floating new bonds tho
discount on which, amounting 10 S3lS6,-
800. had 20 be deducted. The total proft
and loss surplus on June 80 was there
for ST. O07. a gain Of only Sl.l70S22, and,
OF course, no dividends were paid.
One way IN which expenses were re-
duced. according 10 the report, was in re-
moving the causes for loss and damage
claims Disbursements on this account
were $4,000 less than in 1908.
Mobile and Ohio Lines.
President Finley makes the following
observation relative 10 operations OF the
Mobile and Ohio one Of the controlled
lines Of the system;
The Mobile and Ohio Railroad begins
az the port Of Mobile. Ala, and extends
almost directly at right angles With the
lines OF latitude through parts OF the
States Of Alabama. Mississippi, Tonnes
see. Kentucky. and illinois. thus bringing
directly together sections Of the country
widely different both as 10 climate and
productions; and in connection with ves-
sells at Mobile. forms part OF great
through line which brings Into close traf-
fc relationship the tropics and the north
ern limits of the temperate zone.
e hae "a
almost ideal Interchange OF business. BY
this route the traffic commodities Of Cen
tral America. Cuba. and other islands OF
the Gulf OF Mexico can be handled in ex-
change for the products of the grain
fields, packing houses, and manufactures
OF the West. The possibility Of this inter
change Of traffic has been created by the
greatly improved methods Of Transports
eion which have been adopted within re-
cent years.
The construction OF locomotives OF
great power and speed and OF cars spe-
cially constructed for ventilation and re-
has made it possible TO trans
port over long distances all classes OF
highly perishable freight. and has prac-
tically eliminated most Of the disadvan-
tages Of distance separating regions wide
~ dissimilar in many physical character
lstics
THE transportation department OF this
has been carefully organized
for the purpose OF properly handling this
special class Of traffic. and continued and
steady increase OF this business furnishes
evidence Of its Importance.
south American Trade.
The president Of this company. IL sew
sraI communications published in tho
press Of the South, has endeavored 10
place before the commercial interests. not
only Of our Southern ports but Of the
country generally, the growing impOr-
ance OF the trade Of Central and South
America. cuba, and the islands OF Tire
Gulf OF Mexico.
Another part % the freight traffic Of
he company which has been greatly ex-
ended during the past few years. is that
moved in package cars.
"A system has been inaugurated by
which these cars are operated upon pre-
Use schedules between all important
points. which has been so perfected that
n speed and regularity this service is
rot materially less effective than the
highest class OF express service.
What has been said in regard TO the
OF the north and south
movement OF freights is even more
applicable 70 the movement OF pss-