The Topeka state journal., 1914-01-20
Bright Outlook for Improve
ments This Spring.
NEW YORK SEES l. FUTURE
Despite Low Earnings, Money
WIN Be Spent.
Other Items of Interest in the
Traffic World.

opportunities and the future Of the
Rock Island Lines. After witnessing
low records In stock sales and after
listening to weird tales of receiver
ships Wall street finally admits that
the opening of spring will bring an
awakening among the powers In Rock
Island circles and the 5000 miles of
lines will undergo a rehabilitation.
Topeka railway circles today receiv-
ed through the medium OF the New
York Evening Post, the financial lead
er in Wall street news. an encouraging
report of the Rock Island. Despite the
falling on of earnings. the unusual re-
OF securities, there is a bright outlook
for Improvements and betterments.
Here is the report from New York:
Last October. when Rock Islands q
preferred and common stock and 4 per
cent collateral trust bonds were selling
around receivership prices, announce
ment was made that control Of the
the MoOre-Reid crowd to Phelps, Dodge
& Co. That announcement was ia
vorably received in banking and rail-
way circles, and holders of Rock Is
land securities were congratulated over
the change in management. But moth
ing else happened. Last week the 4
per cent bonds sold at 48A, the lowest
price on record. with the preferred and
common still hanging around last
years low levels.
This week, however, with absolutely
no new Developments. all three classes
OF securities named advanced 5 points
to new high record for the year.
Phelps. Dodge & Co. did not acquire
control of Rock Island for stock job
bing purposes. Hence. much to Wall
streets surprise, after the change oc-
CURED in the management. nothing
happened in Rock Islands quotations.
Speculative Wall street mistook that
inactivity for uncertainty as to wheth-
er after all. the property was to be
placed in the hands Of receivers. That
uncertainty brought about selling by
professional spectators and small in
vestors.
"On December 81. however. while
the per cent collateral trust bonds
were esta abliching q new low record,
the directors of the old Chicago, Rock
Island & Pacific railway paid a quar-
terly dividend of IN per cent. That
dividend, which enabled the Chicago,
Rock Island & Pacific railroad to pay
interest on the collateral trust 4s set
tied the question of possible receiver
ship. Then Wall street seemed to
suddenly realize that IL no receiver
was to be appointed the stock and 4
per cent collateral trust bonds were
Even before the change occurred
in the management of Rock Island.
there was no real basissfor the disturb
ing rumors that were widely circulat-
ed. Last year the old Chicago, Rock
Island & Pacific railway increased its
maintenance appropriations by $3,O00..
900, and then reported a surplus of
$4.000.000 over fixed charges. That
surplus was sufficient guarantee that
the company would be able to wealth
er the i'll effects of the corn-crop fail
ure. For the five months of the cur
rent fiscal year gross. and net show
decreases of $1,491. 900 and $1.4O2.0O0.
respectively. but then weekly gross
earnings. according to officials of
the company, show that the tide has
already turned.
"Only recently the new interests in
control Of Rock Island made a thor
ough inspection Of the property and
now an aggressive policy is being
mapped out. Under the management
existing prior to 1902 Rock Island
shares were classed with Northwest
ern. st. Paul. and other investment
stocks. II properly handled there il
no reason why the system cannot re-
cover its lost prestige"