The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-28
ROCK ISLANDS NEED
PARED BY AMSTER
New Chairman Thinks Ken
drick Supports His Stand
That Line Is Sound.
PREDICTS EARLY PROFITS

N. l.. Amster. chairman Of the execu-
tive committee Of the Chicago. Rock
Island and Pacific Railway Company.
has Just issued an analysis Of tho re-
port on the physical condition and imam
cial needs Of the property recently mad
by J. W. Kendrick at the request Of the
Hayden COMMITTEES. Mr.. Amster IL evil
IDENTIFY wei, pleased with the kendrick
report and intimates that all OF Mr..
Amster's contentious that the property
should have never been put In the re-
ceivers' hands have been supported.
N Hendricks report. the result OF
six months exhaustive investigation.
fails to show that the Rock Island
property In physically In poor shape"
says Mr.. Amster, and his report GER
tainly refutcs the stories that nave been
put In circulation that the property was
a physical wreck. a broken dow dere-
lict hardly worth the while Of the col
lateral bondholders-the present stock
Notwithstanding IT."
Mr.. Amster thinks that a portion oi
Mr.. Hendricks estimated need OF s27.-
600. 900 for the property In the next
three years may be pared down. Mr..
kendrick said that $500. 900 would he
needed for new motive power. sl,ols.675
for Improvement to existing motive
power and Se,423,256 for freight equip
ment. or a total Of $i,43I,93l. MIR.
Ams.er holds that these items may be
easily provided for out of ne annual
depreciation fund. which amounted TO
S1,713.?03 for the fiscal year ended
June 80, 1915.
This fund. Mr.. Amstcr holds, will IN
the next three years aggregate con-
sidcrably in excess Of the si,i3i,93t
that Mr.. Kendrick includes In his cs-
innate OF new funds required. so tina
this amount may be properly deducted
from the estimated se7, 900. 900. BY de-
Quoting also the SO. 9O5. $40 for grade
revision In Mr.. kendrick.s estimate.
which Mr.. Anster believes need not
he spent at this time. the amount needed
for the railroad would be about si?,S6S.-
612. Mr.. Amster believes that even
this amount need not he spent immedi-
ately. lie says that II the stockholders
should decide to raise 10000, 600 or
$4,000 oo. a large part of the money
could not be spent during the next three
or four years.
Mr.. Amstor holds, however, that the
most important feature OF the Kendrick
report is that OF the sl0.i63,S22 which
Mr.. kcndrick shows can be saved an
nually only sl.353,i10 Is dependent upon
80 VI Y llDlfs ! ltN H.
$500 600 can be saved through the pur-
chase OF new motive power costing $500
900 and s563.470 can be saved annually
through the expenditure OF 2.ia3.. 90
for freight equipment. Other savings
do not depend OIL the spending OF a dol
lar.
with this report says Mr.. Ams;er.
"the new board has something to work
on and the property Is sure to get tn.
| ltutHf of nrpuer spfap1fH. ,p.ru ,i.,, and
the right control Of expenditures. which
10 certain to result IN showing net earn
ings in excess of 1900, 900. or more
than IL per cent. on the present stock.
| believe that In tine next three or four
years the compary's net earnings viii b..
from s3.0U0.o 900 TO $i,000.0O0 more tina
what Mr.. kendrlck predicts. and II the
stockholders viii use good judgment all
# these earnings and all the
benefits that Will come from the proper
control OF the property WI. go to ;h.n
and 10 Ole else