The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-13

purchasing power and SO OF every form
of industry in which they were engaged.
When owe night they were apparently
shut out by the wal from the European
market. which has always consumed a
large part OF the American cotton crop.
the people OF the South we're thrown
back upon their own u with a
disturbingly large proportion Of their
chief money crop on their hands and an
inadequate market price in prospect.
Despite several futile plans Of assist
ance from without, the South practically
suspended for a time its industrial activi-
ties. The result was a fall. as vertig-
nous as that OF the price Of cotton. in
the revenues OF the railways OF the
South, and this lean diet was protracted,
with the condition which caused II,
throughout The year now under review.
For this company the suddenly changed
Industrial situation OF the South meant
a loss in revenues for the fiscal yea OF
SS,551.AS7.22. or 1909 per cent. The de-
velopment of the loss was p~recipitous.
July showed a small increase in revenue.
August n decrease of LEO per cent.
September n decrease of S.33 per cent.
while In October. November. December
and January the decreases In revenue
were respectively 1S.47 per cent, 20.06
per cent, 1897 per cent. and 1923 per
cent, with gradually improving condi-
lions during the remainder Of the fiscal
year. as the South again caught its
breath.
Retrenchment was Necessary.
ut was a situation which demanded
radical action on the part of manage
ment When the first symptoms of the
loss Of revenue were fel; plans of re-
trenchment were made and were there
after applied progressively. This action
could not be brought into full effect for
several months. but the effort became
both evident ard effective in March.
1915. The result. for the year was a re-
duction OF expenses amounting to So
5S0.93s.6S. and a balarc Of income over
all charges of si,5H3.36?32, as COM
pared with the similar balance (but in
that case after provision for a divi-
dend) OF se.041.1I6.69. carried to the
credit of profit and loss at the end Of
the previous fiscal year"
TIE statement for the year shows a
total operating revenue of $62. l99,J09. as
compared with $70.150,o 800 in 1914. while
total operating expenses were s46.l74.-
10. as compared with s5l.,6O,649 in
1914. The total gross income was Sl6.-
G3s.91e. as compared with Sla.51s.364.
Total operating costs decreased 1919
per cent. as compared with a decrease
OF 1903 per cent. in gross revenues.
Transportation costs decreased 1850 per
cent.
President Harrison points out that
while holding steadily to its policy OF
retrenchment Il has not sacrificed the
appropriations for upkeep Of the prop
erty. which he calls "thc obvious and
easy method The cooperation OF the
state railroad commissions and OF others
has enabled the road to reduce largely
its passenger service more nearly 10
the requirements OF current passenger
traffic than II had been for several years
past. and thus made It possible to spend
what was necessary for upkeep." As n
result OF this. he says. the condition Of
the road is better thar ever before. Oniy
one of $500. 900 passengers was killed.
The building up Of a South American
trade. new to manufacturers in the
South. has been helped by the company's
South American agency. President Har-
rlson says. laying the foundation Of
what he hopes will he an important
factor in Southern industrial! activities
In coming years.