Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-12-02
FRISCO IS READY
FOR CDNIB c YEAR
WILL MAKE BUT FEW ENTEN-
SIONS-VO INCREASE FFFlC-
iHNCN Is PROPOSED.
NO BIC PROBLEMS ARE UP
Floating Debt is Reduced 10 II
Manageable lIasis-Prcecnt Needs
Well Supplied by Cash.

An official Of the Frisco says the
company does not contemplate any
financing iu the near future. that
present needs are well supplied by
$5,oOo,OoO cash on hand in spite Of a
floating debt and that purchase Of
New Orleans Mobile y Chicago
stock calls for raising of money.
As far as maturing obligations are
concerned the Frisco has little to
worry about at least in the current
year. The company provided in ad-
vance for $l,470,O0O of the $4,72O,-
coo funded debt maturing in the cur
rent fiscal year The remaining
S25O,OOO was paid on August l last.
.The monthly, quarterly and semi
annual payments on the various
equipment trust obligations mature
to the amount of S2.734,O3O during
the year. These can be taken care
of without additional financing.
In the fiscal year ended June 30.
1913, not only does about $2,75O, 900
Of equipment notes mature but ST.
100000 three-year gold notes must
be paid by March /, 1913, and $2,-
250,0 two-year gold notes by June
] OF that year.
Under these circumstances and
with the avowed intention OF the
management to develop their exist
ing lines without making extensive
additions Frisco may be expected to
do little financing this year, although
new equipment if purchased, will
call for additional equipment trust
notes. OF course stronger roads than
Frisco would not care to get along
with a floating debt. Nevertheless
Frisco In the fiscal year 1911 de-
posted sufficient cash to take care
Of bligations which might have been
loft to the present year. The amount
taken care of at least six months In
advance was $4,470,O0O.
Floating debt Of $S32,842 on June
80, 1911, compares with more than
S6,200.0 900 on the corresponding date
in 1910. The comparative improve
ment was brought about principally
by the redemption Of S4,S33, ,O70 bills
payable by means of the sale of $4.-
100000 and $4,3003O0 was obtain
ed
Last year the company made a
gross increase of $19,611.00O in fun
ded debt and equipment obligations
and a net increase of $40, 0,32S,06
after satisfaction of maturing obll-
cations and after provision for the
advance payments. The road may be
more fortunate this year, barring Gn-
forseen developments, as the float
ing debt was reduced to a Manageable
basis
The net increase Of about $10,-
100000 b debt is mainly accounted
for as follows; In retirement Of
$4,S33,07O bills payable in S9G4,725
additions, etc, to Kansas City, Fort
in $1,596. 2O8 equipment S509,159
and controlled companies $322, ,O2s'
additions etc, to ansas CitCy, Fort
Scott & Memphis, $279,02S additions,
etc. to Kansas city, Memphis & Bir-
mingham, and In s1,SOt,549 addition
to discount on bonds carried in sus-
pense to be charged off in annual
installments.
From the fact that $S02,253 was
charged to profit and loss for bond
discount besides $1.S01,549 added to
suspense. It appears that Frisco's sale
Of $19.61l 900 bonds and equipment
trusts cost discount of S2,6051S02
or about 10 IA cent on each dollar I
raised. The most unfortunate fea-
ture Of Frisco's situation yet to be
charged to profit and loss in annual ,
installments. The total on June 30 F,
last was almost $l1.600.0O The .
charge this year can only be approx /
mated. but presumably 1t will be
olcse to $1,000. 600. In 1910. S4SO.1S4
was so charged and in 1909. $512,- [
1913. Frisco has completed It's
charges to profit and loss for depre-
citation period to 1907 in the value OF
destroyed and dismantled. Z
The company now makes all its
charges for depreciation Of equip.
ment in its current operating ex-
penses.