The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-10-19
NEED THE MONEY.
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throughout the territory east Of the
Mississippi and north Of the Ohio and
Potomac rivers.
Mr.. Willard called attention to the
decision OF the commission in the for
mer case. wherein it was stated that
1.-The net operating income of the
railroads in official classification terri
tory is smaller than is demanded in
the interest of both the money pub
lie and the railroads" and to the fact
that the railroads had already taken
action to secure additional revenues
through various advances and changes
proposed by the commission will not,
in our opinion, adequately meet the
situation" he added.
Big Cut in Revenues.
THE annual statements Of all the
railroads involved in the proceeding
combined, for the fiscal year ending
June 80, 1914, show roundly that the
total operating revenues during that
year were approximately $53,0OO.OO0
less than during the previous year,
while the operating expenses during
the same period were approximately
$18,000,000 greater.
'"The net operating income Of these
companies for the same period
amounted to $25S.0O0,00O or approx
lYnal0ly 90, (VO,VOV lSSS lAAn was
earned during the previous year and
equal to but 1898 per cent upon the
property investment, lower return
than was shown at any time in fifteen
years.
1.-The income applicable to interest.
dividends and surplus during the fiscal
year Just closed was $264,900. 900 or 4.O2
per cent upon the total capital obliga-
ton, this return also being lower than
any other in fifteen years.
"A war such as that now raging
causer great and immediate disturbance
to industry, commerce and finance. II
caused contraction of credit and great
restriction If not the actual stoppage OF
international trade as well as serious
disturbance to domestic, and as we
have seen, it has thrown the security
markets Of the world, first into panic
and then into suspension OF operations.
Big Debts to Meet.
Insofar as the war and the conse-
Quences tend to change the conditions
surrounding the enlistment OF new cap
ital they tend to change the funda-
mental relation between railroad and
shipper for the cost of capital is one OF
the most important clements of the cost
Of transportation. 1t is known that the
railroads of the United States have over
$500, 000, 900 Of outstanding obligations
which will mature and must be met
was shown in the original record in this
case that the railroads in official CLASH
fcation territory only, had spent APP
proximately' 5000. 00O. 600 per annumn
upon their properties for Improvement
and extensions during the last ten years
period and it will be necessary to con-
tinue such expenditures if the roads
are to maintain their standard of ser
vice and provide for the growing needs
of the future.
Further, as nearly as can be ascer-
tanned. there are more than three bill
lion par value of American railroad Sc
curities held abroad as investments.
The demands for cash in Europe grow
out Of the present situation will doubt
less result in large selling OF such Sc
curities when the market or stock ex-
changes are again opened and the posi-
BILE effect Of such selling upon railroad
credit and related subjects Is causing
much concern.
with all this in mind 1t will readily
be seen that the available supply OF and
probable demand for new capital az
well as the interest rates thereon are
matters Of great Importance not only to
the railroads but also to those who de-
pend upon them for transportation"