The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-17
ROCK ISLAND SHOWS
SURPLUS FALLING OFF
Rate Reductions, Increased
Wages and Expenses RespOn-
siblc, Says Company's Head.
TWELVE YEAR COMPARISON

The report ~ the Chicago. Rock Island
and Pacific Railway Company for the
year ended June 30 shows that the
balance of income Available for dividends
was s450,62l, as compared with $4,05s,-
asa the year before This was equal to
6 per cent earned on the $75.o0o,0oo
common stock. against Sal per cent.
earned on the Same stock In 1913.
Smaller revenues from operation. together
with higher operating costs and interest
charges, were chiefly responsible for the
decline IN the surplus available for divi-
dends Not only did the earnings OF the
company show a considerable decrease, but
the profit and loss surplus was reduced
from s13,6o4.S5l on June 30, 1913. to
Ss.733,s1l on June 30, 1914.
The total operating revenues were
Sos 2Os.1l2. as compared with s7l,36i935.
with net operating revenues OF si72os,-
1853. against sls,S6O.s32. The operating
income for the year was Sl3,S92,534. as
compared with sl5.9I4.395. and the total
income was $4,000. S55. as compared with
s16,944,l90. Total charges amounted TO
Sl361O233. against sl2.sS5,s35.
The amount carried to surplus for the
year Is $45O,62l. as compared with s3l4'-
500, showing an increase or slS5.79l nut
this is only because dividends were de-
clared out OF profit and loss surplus, In
stead Of from earnings. as was the case
the wear before. As result. deductions
from the profit and loss surplus during
the year ended June 30 amount 10
SASH ,O3e, against S9s3e32 In 1913. leav-
ing a profit and loss surplus on June 3O'
1914. of sS733.S11. against Sl3,6Oi,S1l on
June 30, 1918. .,
In his remarks to the shareholders II. u
Nudge the president. makes some inter-
estlng comparisons in regard TO the prop
erty in 1902 and in 1914. and also in re-
gard to the changes IN the cost OF opera
ton and the revenues during the twelve
wears lie points out that in 1902 the
rock Island lines consisted OF total
Of 4Oo4 miles of trackage with Si2 miles
Of wards and sdings and that on June so
Of this year the company had S,32S miles
with $500 miles Of s.dings and yards.
In stating the primary and Fundamental
causes for the failure Of the company
10 earn dividends Mr.. Nudge gives the
following;
I. Reduction Of passenger. freight
and express rates and inadequate
mail pay for added service.
. Increased rates OF wages
3. Increased expenses due TO legisla-
tive enactment such as; ta) sixteen
hour law for train, engine and yard
men: tb) Nine hour law Tor telee-
rarhers. Ic) Full crew bills: I'D
Safety appliance acts; N) Electric
headlight bills: 90 Laws requiring
extra trains run In case of thirty min
ute delay to regular trains: tgl Boiler
inspection law. ,h) Steel postal car
requirements, 90 Semi monthly pay
roll acts: 90 Employees compensa-
ton acts: tkD Laws and commission
orders requiring absolutely unremu-
nerat!ve daily train service. CD More
than 500 other laws passed. in tho last
five years In the fourteen states
through which your lines operate, in
creasng expenditures with no Offset
ting earnings.
T. Increased taxes per unit OF value.
8 Increased cost OF capital funds.
During the year the funded debt Of the
company Increased s30.jlS,930, including
equipment notes.