Abbeville progress. (Abbeville, Vermilion Parish, La.) 1913-1944, 1913-11-29
FINANCES OF TEXAS RAILROADS
COMMISSIONER WILLIAMS MAKES
REPORT ON OPERATION
RESULTS.
Increases and Losses Are Shown.
surdensome Interest Does Away
With Profits, Etc.

Austin, Tex.-Railroad Commission
er William d. Williams Monday made
public the following comparative
analysis of the results from operation
of Texas railroads: The reports to
the railroad commission by the Texas
rail lines show a total operating reve-
nue. of $102,7 $50 for the year end
ing June 80, 1912. while for the year
ending June 80, 1913, it was $116,46
375; the increase for the latter year
was S13,67S,S44, being an average in
crease of something more than ST.
1890 a month.
The income from operation for the
year ending June 80, 1912, was S21,-
063, 40S, while for the year ending June
80. 1913, it was $25,46S4 31, showing
an increase for the latter year of $4,-
405,022. Thus the average increase
in the revenue left in the hands of the
carriers after the payment of operat-
ing expenses was more than 1861, 900
per month.
For the first three months of the
current fiscal year, being for the
months of July, August and Septem-
Der, 1913. incomplete and partial re-
ports received show that the operat-
ing revenues have again increased at
the average rate of about $4,000 a
month.
In addition to their revenues from
their business as carriers, the Texas
lines had other sources of income, as
for instance from rents, joint facili-
ties and the hire of equipment, from
which they received for the year end
ing June 80, 1913, the aggregate sum
of S3,969, 796, and their gross cOrpOr-
ate income for that year, after first
deducting taxes and all transportation
expenses was $27,141, 643. OF this I'M
the railroads paid $9,196,1SS for rents,
hire of equipment, joint facilities and
other similar expenses, and had left
$17,945, 455 for interest and dividends.
This would pay interest at per cent
on 1888, Jos, or it would pay a .
per cent dividend on capital stock for
the same amount But the original
lines is $15734S,1S5 and the esti-
mated present valuation is about
1929 100000 on which the sum left
with the railroads as above stated
would pay interest at the rate OF as
per cent per annum.
But the Texas railroads owe a fund
ed debt amounting to 1854, 1851 ,696 in
the aggregate and they also owe an
unfunded debt of $9S,733,647. The
total of their Indebtedness is S453,-
491,343, being considerably more than
1920, 200 in excess of their present
estimated valuation, and they are pay
ing interest on every dollar of this
vast sum of money. Therefore, when
they have used up in the payment of
interest all of the S17,945. 455 left with
them after they have settled for all
expenses except this interest, they
still owe s1,6O1,37S, and this amount
they claim is a business loss.
There are all sorts of railroads in
Texas, and no fair view of the situa-
ton can be had regarding them sole
ly in the aggregate. The Trinity and
Brazos Valley railroad reports a loss
of S1,227,035 for the one year ending
June 80, 1913. Two Southern Pacific
properties, the Galveston, Harrisburg
and San Antonio railroad and the Tex
as and New Orleans railroad, which
went down some two or three years
ago into the excessively Improbable
class, show loss of S1,076,931 for the
same period. These lines alone report
that they have managed to lose during
the year under consideration the sum
of 81, O3,967, or 100000 and more in
excess of the aggregate loss on all
other Texas roads.
have pointed out total loss of
$3,394,973 incurred by only three sys-
TENS. If these are omitted from con-
sideration it will be found that the
remaining lines, considered in the ag-
gregate and after deducting all the in
terest that accrued on their indebted
ness, had a corporate profit left of
$1,793.595.