The Washington herald., 1914-09-18

net revenues over last year al u HhiSn
was saved In the transportation depart
ment
The strides made BY the property IN re.
cent months IN developing operating anc
Transportation economies has been the
one pleasing feature OF the company
statements As far as earnings were
concerned. the fiscal year was disas-
ltrous one. Gross fell on ,heavily. and
the company reported a deficit after al
was superinduced TO a considerable ex.
tent BY The necessity for heavy OUTLAWS
for maintenance and other improvements
found existing when the managemeni
took charge Of the property In the early
part of March last, but these extraordi-
nary expenditures. It is officially stated
were cleaned up by June 30.
Therefore the property in this respect
\ VIII now be on a normal basis with
roadbed, structures, equipment and loco.
motives In excellent shape and requiring
only normal upkeep. With these factors
OF economical operation up TO standard
the property can secure the full benefit
Of transportation savings. Already there
are evidences that new management and
better plant have brought results.
Cost of Operating Vessels.
Although II had been currently believed
| that the United States Steel Corporation
intended to bring its entire fleet, compris-
ing some thirty-five vessels, under the
American flag. its recent registration Of
only ten of these vessel and failure to
take action regarding the others would
make it appear that the corporation does
| not intend TO register its other boats
but will leave them under foreign flags, al
least until some event occurs to make
a change advisable.
It has been pointed out repeatedly that
the cost of operating a vessel under the
| flag OF the United States is fully 50 per
cent greater than that OF operating under
the British nag, while operation under
certain other European flags, such as the
Norwegian, Is even cheaper. This gives
| vessels operated under foreign flags a
great advantage in the matter OF freight
rates. While the unusual conditions crea-
ted by the war more than out-weighed
this consideration, the comparative free
dom Of the seas that now exists for all
but ships flying the German or Austrian
ensigns has created a feeling Of COM
parative security regarding shipments in
most foreign bottoms and for this rea-
son shipowners are likely TO go slow In
changing the registration OF their vessels
Favorable Banking Reports.
Bank statements Of Eastern cities be-
ing published in compliance with the
call of the Controller of the Currency,
prove that many national banks have
been extending all the accommodation
possible to their customers.
While the cash reserves Of many Of
the strongest of them average % per
cent Of their deposits instead Of the IS
per cent demanded by law in ordinary
times, this is no sign Of weakness. Banks
outside of the reserve cities are required
to maintain reserves OF only 10 per cent
and they need not keep all Of It in their
vaults.
The excess reserves maintained by
banks in reserve cities Is for the pur-
pose OF accommodating these outside
banks, many OF which practice boarding
at the wrong time, as they did seven
years ago. Having made their reports and
got their window dressing out OF the
way, many city banks bought CONNER
elaI paper and otherwise assisted mercan-
tile interests. and the monetary situa-
ton seemed easier in consequence.
Losses of N. & w.
few railroads to increase. its gross rev.
enues in 1914. the gain amounting to
$3.50 SIS. This, however, was wiped out by
a $1,S7O,e2s increase in operating expenses
AS a result no operating revenue de-
creased AZ per cent, or S6Ss, $50
After spending a slightly greater per-
centage Of gross revenues than ever be-
fore on maintenance OF property, the
road earned per cent dividend require
ments with a margin OF 50, I0S, 900 to spare,
equal 10 26 per cent on the amount of
common stock outstanding. Common
share balance of Sc per cent compares
with l01 per cent in the 1913 year, and
80 per cent in 1872
Due entirely TO the conversion Of con-
vertibls bonds. which has been the f.
nancing instrument in recent years, Nor
folk and Westerns common stock has
expanded from S74.2S4.O0O In 1911 to Slo7,-
10000 June 30. 1914. and earning power
has well kept pace with interest require
ments. In the following table is shown
the common stock:
Railroad Rate Cases.
A high executive oficial Of one Of the
Eastern railroads, who has taken an
active part in the movement to re-estab-
fish the credit Of the railroads in the
United States says:
THE application Of Mr. willard and
his associates on behalf Of the Eastern
roads for a rehearing in the per cent
advance case is a short horse" and
ought to be soon 'curried' The law
provides for the rehearing. and, conse-
quently, there can be no question about
the application being granted. The evil
dence that the railroads VIII present
will have to do almost altogether with
the financial situation in the United
States and Europe that has developed as
a result Of the war. The roads would
be ready for the hearing within ten
days. The hearing itself should occupy
only a short time. The commission should
not require a much longer time to con-
slider the new evidence. They took ample
time for a thorough consideration Of the
original evidence"
District Tax Money.
The first repayment of District tax
money is due the United States Trea-
sury from local banks. The original de-
post was about S3,50O.0O0 The present
payment calls for twenty per cent IN the |
case Of several banks, payment will be |
extended
The American Security and Trust has
declared the regular quarterly dividend |
Of per cent.
During July, the c and o Railroad |
hauled l. l,229 tons of coal and SOS tons |
Of coke, compared with 1892 "a tons of /
coal and 1886 tons of coke for the CORE
spending period last year.
The Baltimore and Ohio reports for July Is fol-
oWs:
1874 Chanres
Total operating revenue...........S.lB6ss 's7s go
Total Operating expense..-..-..... 5.6i,sa 'olS2