The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-10-20
Receivership RumOrs Dispelled
by Good Showing.
GAIN IN EVERY Department
Increase in Operating Revenao
Over Last Year.
In IL Months Road Carried
1S,775,OOO Passengers.
Great Credit Is Due Efforts of
President Nudge.

Despite the series of scares that have
throbbed up and down Wall street and
the constant march of receivership ru-
mors from one end of the country to
the other, the annual report of the
Rock Island Lines, made public from
the general offices in Topeka today,
shows an increase in operating revc-
nues, gain in operating income, N
enlarged balance for dividends, SUI
stantial tonnage boost and the paN
ment of a dividend of 5 per cent with
a 100000 surplus.
The sudden decline in the collateral
trust bonds, the preferred shares and
the common stock registered in New
York recently in the face of the recent
declarations of President Nudge thlt
there was no danger of receivership.
looked bad for the Rock Island. To-
day comes the annual report with an
assurance of a per cent dividend and
a fairly comfortable surplus-also n
satisfactory increase in all income de-
partments. The receivership bubble is
burst.
The Rock Island. scattered ove.'
fourteen states, with many miles Of
branch lines which are maintained by
the revenue from the main arteries,
has gone through trying crisis.
GREAT credit is due H. u. Nudge, pres
ident of the road, for the successful
showing made by the road this year.
President Nudge has maintained the
roadway and equipment in standard
condition, has operated the traffic ut
a big gain in revenue, and has guided
the way for a regulation dividend de-
spite the SetbackS in money margins
due to increased operating expenses.
Topeka railway circles take no lit
tie interest in the Rock Islands show
ing, due to the fact that H. u. Nudge
really is Topekan. His long resi-
dence in this city as an official of the
Santa Fe and his old home here has
localized the Rock Islands efforts in
burying the receivership bugaboo once
and for all time.
In reply to the decline of the Wall
street stocks the Rock Island has an
swered in another way in addition TO
the annual report. The officials of the
company state that there are no bones
or notes maturing and that the monsy
required to meet all nearby interest
payments is already in hand. This, it
curities sale.
Rock Island Ownership.
All but 900 of the $74. 900. 900
stock of the old Chicago, Rock Island
& Pacific railway is owned by the
Chicago, Rock Island & Pacific rail-
road, and deposited by that company
as collateral for it's 4 per cent bonds
which are now selling on an per cent
basis. The railroad company has
s145, 100000 stock, all of which is owned
by the Rock Island company. The last
named company has no notes or bonds
outstanding and can therefore be elm
mated from all discussion of possible
receivership. If the railroad should
pass into the hands of the court the
preferred and common stock of the
Rock Island company would be worth
less.
According to the statements the rail-
way company increased it's mainte-
nance appropriati tions s., 900, coo last year.
This means that the gross earnings
could fall off 100000 and the COM
pany could still show a $500, 900 surplus
over the per cent dividend.
In analyzing the annual report as
received in Topeka today it is shown
to S71, 900 or an in
crease of s6,652,000 over the 1912
showipg-10 per cent. The operat-
ing expenses were $50. 900, an in
crease of s5,745,00O over last years
per cent. The efforts of
the road to improve it's roadbed is
seen in this item. out of the $5,745,-
600 gain in operating expenses,
SO 1872 900 went for maintenance and
81 ,562, 900 for transportation charges.
In1S tells the story OF the ROCK
Islands expenditures, especially in
Kansas.
The operating income for the year
was 81 ,915, 600 or a gain of S755, 900
over 1912. After adding other in
come and deducting the fixed charges
the balance remaining for dividends
was $4,060,000, an increase of SPOT
900 which amount is equal to near
ly 511 per cent of the SIS, 100000
capital stock owned by the Chicago,
Rock Island & Pacific Railway COM
pany and against which the collateral
bonds are issued. Dividends aggre-
eating per cent were paid on the
ock, leaving a surplus of S314,S29,
which is a gain of 100000.
Not a rich surplus, to be sure, but
enough to show that the road was
able to overcome operating and poor
crop obstacles and place a weight on
receivership rumors.
Roads Tonnage Showing.
Now for the tonnage-and that
brings in the difficulty of operating
over fourteen states with a myriad of
branch lines. The Rock Island car
ried 21,102,000 tons of revenue
freight in 1913, an increase of nearly
s12 per cent over last year. The road
carried 1S,775,000 passengers or a
gain of little more than per cent
over 1912. The average haul of
freight was PAT miles or AIS per cent
longer than in 1912. The average
passenger haul was so miles, a slight
increase over 1912. The average rev.
enue train load of freight was 297