The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-10
$t7,44e,1OO PLUM
IN CENTRAL PACIFIC
Report DisclOses Southern Pa
cific Has Absorbed
Big Profit.
SURPLUS NEARLY ALL GONE

A feature Of tf,e Southern Pacific COM
pany report for the year ended Juno 30,
just issued, u the payment of extra divi-
dends Of aos per cent, amounting to
s17,4t9,1oo. on tho common and the pre-
ferred stock of tho Central Pacific All
OF this stock u owned by tho Southern
Pacific, which gets the benent of this
plum.
The Government has brought suit
against the Southern Pacific 10 compel the
separation of the Central Pacific from IT.
The regular dividends paid by Central to
Southern amount To S5,0SO.530. No such
large dividend as the present special dis
tribution has ever been paid by tho Cen
trail Pacific The surplus OF the Central
Pacific on June 30. 1918, was s22,OS2,-
400. The payment OF this unusual divi-
dend has absorbed almost the whole Of
this balance. leaving at the end of the
year Just ended a balance OF only So
320,I29.
goes Southern Pacific in this distribution
has taken the fruits OF Its operation of
Central Pacific since thu consolidation Of
/ the two lines.
Urges Defence by vetes.
Chairman Julius Kruttschnitt in the
report urges tho Stockholders to defend
/ AllflT property against NIlt VI
demagoguea and politicians
Your board repeats tho suggestion
made last year that you take an active
| part IN repeiling tho attacks of dema-
| gogues on your property" he says. I'm
fair treatment of railroads II due In
great part TO the belief OF politicians
that only financial magnates suffer there
from The surest remedy for the evil
Is for railroad investors TO stve unmis
taxable evidence of their numbers ant
OF their resentment against unfair iegts
latfon or regulation.
You now number ovsr $4,000. AND
with the stockholders OF other railroad,
and with investors in their securities yo,
form a body OF a million or moro voter:
whose protests, backed up by ballots. car
lawfully exert sufficient force to compe
fair treatment by your servants II
Congress- in Legislatures, and on com
missions
while your company has cheerful.
made such expenditures as were required
by Federal or State commissions or b!
legislation, many unreasonable laws hav
been enacted. During the fiscal yeal
ended June 30. 1914, tho cost OF comply
ing with such legislation and with tn
unreasonable requirements OF Federal an,
state commissions has added sl.099,t0
to the operating expenses of your com
pany."
Fears Effects Of Trust suit.
Chairman kruttschnitt takes stron
position regarding the outcome or IN
, Governments suit TO compel Southern I
, sell Central Pacihc. During inc -,
, southern received s22'ooo'ooo IN DIVIDEND
. from Central Pacific.
, n'le sui.S ul ~ ro-s.a =, ~,
, ,rus' act nv - ',,',.I,,,,, 90 ,n
: law" saws Mr.. Kruttschnitt- this muc
!, is certain, that "A decision declaring IN
union under one management OF tn
Southern Pacific Company and the Con
trail Pacific Company to rs IN violation O
the Sherman law, would go far beyon
any previous decision Of tho courts
II would involve a construction Of tn
: law which. N imparttally applied. woui
. result I'm tho Wholesale di~integration q
|. the railroad systerns of this country. W
!, have. moreover, Ia this case tho vi
= usual advantage OF having as our allie
. IN very communities in whose suppose
! interest tha suit was INSTITUTED.
= ,sW. bel,evs that the rights and ir
r forests OF both companies, as we'll as IN
a interests OF the communities they serv
= Justify and re1utre the vigorous defend
y which the management Is prepared
malxr against tho demand of tina Coz
II ,rnment for disruption Of our sy-ste