The Washington herald., 1914-08-13

as well as it can issue notes against gold
IN its vaults in England.
The opening Of the branch at Ottawa
IN preventing the transfer Of gold across
the high seas will preserve the worlds
stock Of gold. II gold were shipped and
Sunk, II could not be replaced, but would
be q total loss. II the gold on the kron-
prirzessin Cecilie had been sunk, It would
have swamped the Lloyds or any tnsur-
ance concern. and there would have been
nothing In place OF the metal. me
preservation Of the gold supply Is there
fore Of the utmost Importance.
"A fall in exchange as soon a. COM
modities and grain are purchased In
quantity through the deposit OF gold at
Ottawa il absolutely certain There has
never in history existed foreign exchange
favorable TO q country at war, and as
soon as present balances are satisfied,
exchange must become unfavorable to
England. How soon the bottom will drop
out of the exchange market. cannot
predict, but all wise managers are pro-
tecting themselves against the conting-
ency.
while it is true that the export move
ment Is dead. ! am informed that Great
Britain, France, and Belgium are pur-
chasing wheat. corn. and other COM
modities and storing them pending a re-
protect themselves in this manner, they
might find their supply curtaiIed later.
THE commerce Of the United States
ought to resume in the near future, and
when II does. commodities. grain, etc,
cannot be shipped fast enough. They
are being purchased nov.
As soon as the export movement starts
in bulk, this country can take care OF
Europe's sales OF stock and the oppor-
tunity for reopening the New York Stock
Exchange will come sooner than many
expect"
Norfolk and Western Report.
1t was announced yesterday that the
annual meeting of the Norfolk and West
ern Railroad Company will be held in
Roanoke, Va, on October l to elect d.
rectors, independent auditors to audit
the books of the company, and TO con-
slider the annual report.
The report of the company for the last
fiscal year shows that after spending
more than ever on upkeep OF property
the company earned a surplus for COM
mon dividends equivalent to 81 per gent
on the sos g., 900 common stock. the ap-
proximate amount outstanding at the
close of the year. In the twelve months
ended June 30 almost Sc. 500, 900 convertible
bonds were exchanged into common stock.
Share earnings in the preceding year
to 1O.1 per cent on 800. lSa, 800
stock.
Norfolk and Western was one of the
few roads to increase its gross revenues
in the fiscal year just closed. The in
crease amounted to $7So,sss, or under q
per cent
The effect Of this gain in gross, how
ever, was more than offset by an in
crease in operating expenses of H,S7o, 029,
and by a larger tax assessment. so that
net operating income declined Ssls,5T, or
almost per cent. OF the increased ex-
penses $S3SOOO was due to larger mainte-
nance appropriations and $S75,oOo to larger
expenses.
The cutting OF maintenance Of way ex-
penditures was more than made up in
the higher equipment maintenance, and
the aggregate figure was greater than
ever before, consuming % per cent Of
gross revenues. In the four years from |
1911 to 1914 maintenance has increased |
s, 245,OoO and transportation expenses |
g S95, OOd
For maintenance to keep pace with |
expenses in recent years |
If successive wage increases must be |
considered very satisfactory, and takes |
some Of the sting out of the fact that
net after taxes in the same period in |
,reased only 81, 500, 900, while gross gained |
almost 100000.
m