The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1912-11-15
STARVING RAILWAY DEVELOP
MENT.


miliar to many business men. The
volume OF their business is large, but
the ratio of profit is small. For the
fiscal year. whose results were recent
.Iy published. gross earnings increased
s54. .49s, ,5S7 and net decreased S5O,4l5.
Out OF the smaller net had TO be paid
increases Of taxes by s12,6S9,253. The
railways in recent years have so con
solidated themselves that this result
in itself might not be uncomfortable, but
in finance nothing stands by itself.
Everything is relative, and relatively
the situation of the railways is less
satisfactory than the above results in
dicate, and is so considered BY the
ultimate Judge. the investing public
This is made clear by the figures of
the October dividends and interest and
the September flotations OF new secur-
titles Whatever may be thought Of
the condition OF the railways them
selves. it is undeniable that they are
falling behind in their claim upon pub
lie favor, and that they are doing so
with reason, however undeservediy.
The dividends of the railways for
this October are not quite a million
dollars larger than last year But
total disbursements this week increasS
ed five millions. OF the increase more
than three millions were contributed
by industrials. OF which sixteen paying
this year paid no dividends last year.
At time when the totals are the larg-
est on record it cannot be contended
that the railways are getting their
share The relatively unfavorable
comparison is reflected in the Septem-
Der financing. The months security
issues are largely above last year, but
the railroads fare worse in their new
issue sthan in their dividends on out
standing issues. Railways were able
10 foat only 81 Al. 600 OF bonds, while
industrials ioated s16,SSe 600 Rail-
ways are no longer able, or perhaps it
should be said willing. TO issue short
term notes with their previous facility
Their issues Of thesex troublesome aud
expensive securities decreased s.. .320.-
goo while industrials increased their
issues s3.000,000 The total OF all Is
sues By railways. notes, bonds, and
shares together was S1s.O70,O00, com
pared with sS5.75o.o00 by industrals.
For the year the comparisons are both
larger and more striking. Railways
have issued a total OF stocks and
bonds and notes smaller this year than
last BY S23.S21. leo. while indnstrials
have increased their issues b. 1852
2SS,e5o. The decrease Of the railway
bond issues was 10 less than So. .SSs.-
400, and they we're formerly the fay-
Orite investment The increase OF the
industrials was mostly in stock. the
figures being s25s. .41S.25e. Formerly
we're unable to market
stock in competitor with the railways.
but this rear they have been able to
place between three and four times as
much as the railways.
These figures throw revealing
light upon the question OF how We are
going 10 get the eight billions, worth
7f railway Improvements which the
aoantEy needs more than the railways.
'ye are not going 10 get them unless
.hess conditions change. The country
Tin have % shriak . the volume OF
Tztslc the railways are able to carry.
That 5 tie Eay the country MANAGES
ts hank credits. and that is the way
( Eal have . manage its railway
No sane mzz thinks thai rail-
S2Tss are going 70 finance bilious of
9s<te-1ents hy sbo-t<eru no<es Il
LS5aE raEes e Interest when fhesr ret
eTez1es AZ stzga21t a best he
sre aoE II the position Of the
who worried orer snsu
.eets- but composed himself whea his
'o-Towi1ss we're 50 great that his
resitars bad TO take care os hia.. Ro-
.1sz - ndustEisl oo1dIfioas are. there
lGst come tura ore way Or an0.Aer.
ID 7Tasa investors want 70 shift thesr
lFssI2eats once Ho-e whe-e w5n
Asy aooks To railway securities Eloat-
{ p s0Veu1ea1 guarantee aad
Tlth taxation against railway oaezs-
Z sescits. Il tAe manner Of TIE Pas-
aaa Cazz1s
1As 1en session Of she state legs