The Washington herald., 1914-03-06
Gao. SLUMP
AFFECTS MARKET
Prices Generally Fall. Follow
ing Decline IN Stevens
Road Shares.
PLIGHT OF RAILROADS
Official Statement of Losses Dunng
December-Moral Effect of
Rate Increase.
BY w. sTEALEY.

was irregular. The sIniertone Indicated
strength. The feature of the marketrwas
the 6 point slump in Chesapeake and
Ohio. The stock c.osed az IS 81.
The decline was rre,:ipiteted by itGcida-
ton on fears that its dividend OF per
cent, reduced from : rcr cent last An
gust, IS not likely TO be maintained at
that rate from the announcement maae
IN connection with the sale Of s., $50, go OF
> per cent notes TO a syndicate to take
up the SO, 5oo.e9o maturing on June and
December l Of this year, and 70 provide
funds for additional capital expendi-
tSres.
II Is provided that slEJcd,o ,o1 in cash be
set ASIDE from earnings the next five
years. including $2.o0O,6cO in 1914. S5,0o0, ,ooo
in t9is. ard S.0G0,ot each in 1916, 1917, and
ISIS: and IL the payment OF yearly
amounts. beginning quarterly from this
August, are not made. no dividend on its
stock will be paid until its arrears have
been made up. In the. meantime it is
proposed TO continue the present dividend
rate of per cent per annum IL the earn
ings permit In this connection il Is OF
interest to note that its earnings for the
last year ended June 90, 1915. were equiva-
lent TO per cent on the stock, against
$50 the previous year, ) is the year be-
fore. and 10 per cent the previous year.
and that the president Of the company
states that its earnings for the past seven
months have already been sufficient to
pay the full per cent on the stock this
year.
Steel. Reading, Union Pacific. and Cop
per closed fractionally lower. New Haven,
closing at 6Sl-2. gained over point.
American Can and Louisville and Nash
vile also made gains.
Local stock Market.
curity and Trust Company stock sold
OH the local stock exchange yesterday at
81 The last previous sale was at 300.
Trading was improved. Five shares of
Railway preferred sold at 81 l., thirty
one shares of Capital Traction at 10.
seventy-five shares of Arlington Insur-
ancc u 3-ial2 as. twenty-five shares of
Washington Gas at 81 IA. and twenty-five
shares of Virginia Railway
common at 10.
In the bond list three 81 900 Metropolitan
Railway IS brought los IL, two $500 Capt.
tai Tracticn 5s l09. and ono 1900 Poto-
mac Consolidated .. 100 SIS.
The Plight Of Railroads.
\ summary of revenues and expenses
of steam railroads in the United States
for last December issued yesterday by
the Bureau OF Railway Economics, is a
striking example Of the losses which the
railroads are sustaining and the ncccs-
sity for increased rates.
Sir George Paish, the editor of the
London Statist, recently expressed the
opinion that an increase in rates would
prove of inestimable value tc business
conditions in the United States. The
moral effect he believed. would not only
encourage investors in the Uniten States,
but abroad. The mere ) per cent increase
which il is estimated would yield about
$50 e00. .00O. is not regarded as Ct dominat-
ing Importance as the money would be
50 widely distributed among several hun
dred roads as to have no material effect
in itself. The gain would be measured
rather by the favorable attitude OF the
government
The report of the Bureau of Railway |
Economics for December shows a de- |
crease in total operating revenue. as
with December, 1912, of 80 per |
cent on a per mile basis. Operating eN- |
penses per mile increased 01 per cent |
Net operating revenue per mile was less J
by 81, or l69 per cent than for December |
a year ago. while that for December |
1913. was 1O.4 per cent greater than for |
December. 1911.
For the calendar year 1919. total operat-
ing revenues per mile increased 81 per \
cent. and operating expenses per mile !
7.3 per cent. Net operating revenue per |
mile decreased slSS, or ~ per cent. while |
that for the calendar year, 1872, was |
greater than for the calendar year, 1911, /
by 81 per cent. Operating income per /
mile decreased $50. or CO per cent.
The railways of the Eastern district |
show : decrcrse in total operating reve-
MICS per .t:!e of line as compared with
iJectEIpe... 81. Of 4.05 per cent the rail- |
wayz .. he Southern district an increase J
r. "a and the NJ t6r 4
Western district q decrease of 90 per
rsnt
Operating expenses rcr mile increased
- per cent nc the Eastern railways; in
i rsased GS Der cent on the Southern rail-
ways GrS decreased - Per cent on the
", S:.rn railways. For :he Eastern rail-
:ays net operating revenue per mile de-
-reaseI as per cent; for the Southern
always !: increased 4.5 per cent, while
or the Western railways IT decreased
81 par cent. Operating income per mile
decreased 2e.4 per cent IN the East; in
;Te2sed a. pe- cent in the South. and de-
;Teased 22.7 psr cent in the West.
For the calendar year. 1873. the rail-
ways OF the Eastern district show q
decrease in net operating revenue per
niie OF 81 per cent: railways OF the
Southern district an increase Of az par
,snt. and the railways OF the Western
= ~
Eres districts show increases in total
speTsting expenses per mile, but in the
Eastern and Western districts :hese in
'reassd operating expenses more than
)aia.ccd the increases In revenues. OPP
rating income per mile decreased le.6
c. cant in the Eastern district: increased
Pc cent in the Southern district, and
.eci cased 4 Der cent in ine Western dis
-.ct
shoes TO Go Up.
.ccoY-;I.g to tne head of one C the
,tG;ycs-, Fctsu siIoe houses in the Cn!tci
States, who was mere yesterday. there
.iti.cs Eli be an ADVANCE in the price Of
&c better Srade Of shces next winter or
he sAoc viii ne skinned" 1t is Simply
/ case cf tie demand exceeding the sup
,iy. b. explained. The steer is becoming
2p:c scarce. ewing 90 the farmers selling
fe cals for focd PURPOSES. Contract pro-
:csals <or Fail hides indicate, he said,
hat the shoe now selling for s. would
" worth $50 next winter. Free hides,
ie said, does 10. change ccnei.ions, as
he leather cannot approach IN quality
hat entering into the manufacture Of the
hoe wcrn By the average citizen IL the
;nited States
wheeling TERMINAL Bonds.
William s:lonion &. Co.. CT New York.
&c Offering sir3sa.eoe Wheeling Terminal
Hallway frat mortgage 4 per cent gold
ord5, dug August /. 1910. Guaranteed aS