The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-07-21
President Bush Spends Thou.
sands on Missouri Pacific.
Adds Big Amount to Expenses
in Two Months.
NET EARNINGS DROP
A Decrease of "a Per Cent
From Last Year.
Other Items of General Interest
in Traffic World.

Kansas City, No, July 21.-Following
the drastic cuts in maintenance ex-
penditures made on the Missouri Pa
cific-Iron Mountain in March and April,
aggregating 25 and &c per cent respec-
lively, President B. F. Bush, soon af-
ter assuming charge of the property,
stated that these reductions would, if
possible, be made up in May and June,
regardless of what the surplus showing
for the year should be- His policy, he
said, would be one of full maintenance
Of the property
1t would seem from the report sub
mitted by the company for May that
President Bush not only has MAJ
his promise. but is doing even bette r
than putting back into the property
what it lost in the two earlier months
by the scaling down of maintenance
expenditures. On the Missouri Pacific
proper, according to New York reports,
maintenance of way and structures in
May show an increase of $211, 900 or IS
per cent, and maintenance of equipment
an increase Of $144 900 or AZ per cent.
Total expenditures $356,000 or So per
cent.
Upkeep Expenses Higher.
on the Iron Mountain similar re-
suits are shown. Maintenance of way
and structures increased $151. 900 or 4S
per cent. and equipment upkeep in
creased $125,000 or Al per cent. The
total increased S2760O0 or "A per cent.
On the entire system for May main
tenance expenditures show a total in
crease of $4,000 or so per cent. The
increases shown in May make the
eleven months maintenance expendi-
lures on the whole system $350,000 in
excess of those reported for the CORES
ponding eleven months Of last year.
Due to those unusually high mainte-
nance charges May operating, not in
Guiding taxes, for Missouri Pacific pro
per required 99.4 per cent of the gross
revenues; in other words the company
saved for taxes and charges only $10,-
251 out of gross revenues of $2,021, 200.
Net Earnings Decrease.
In the eleven months ending May 81
the Missouri Pacific proper reports only
50 ,O96,O00 net earnings after taxes and
expenses, against 81, 719 900 last year,
while the Iron Mountain reports ST.
1896, 600, against 81 669, 900 last year. The
combined net earnings for the system,
therefore, will aggregate $9,433 600,
against $12,3S9,000 last year, a decrease
Of 81, $50, 900. or about "A per cent.
If President Bush has followed the
lures in June as in May it is not likely
that the combined system will report
net earnings in excess of $10,00O.O00 for
the year. Including other income es-
timated on the same basis as that re-
ported in 1910, total available income
will amount to about s12,0OO,OO0 with
which to meet the years charges
amounting to $13.4O0, 900. A deficit Of
between 81. 400, 600 and 81, 800 600 may
therefore be expected, but if this is oc-
casioned by a policy of better matnten-
ance of the property no criticism can
be advanced. The property needs the
money more than the surplus account
and any improvements made at present
should later return their cost to in
come several times over