Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-12
ECONOMIES ENFORCED
AIDED SOUTHERN ROAD
President Harrison Tells Sharehold-
ers at Annual Meeting How DIFF
ficulties Were Met.
The Outlook on Wall Street-Rai1-
roads Have Only Started to
Rise-London Lower.

| BY I. A, FLEMING.
An interesting story was told at the
annual meeting of the stockholders OF
the Southern railroad. held at Rich
mond this morning. covering the steps
taken by the management to meet the
drastic cut in revenues brought on by
paralyzation of southern industries and
| its chief crop.
President Fairfax Harrison. referring
to conditions under which the railroad
operated in the last fiscal year. ended
June 30, 1915, had this to say:
ut has been a difficult year. After
a period of unexampled prosperity
| throughout theN South, attended by
growth and expansion in all forms of
industry. business had begun to slow
up during the early months of 1914.
Although for this reason railway reve-
nues were less during the first six
months of 1914 than they had been dur
ing the peak load of the corresponding
six months of the previous year, never
theless the company entered upon the
fiscal year now under review with an
actually large traffic and a large turn
over of revenue.
The fame of war which burst forth
all over Europe at the beginning OF
August. 1914, had a sudden and with
ering effect upon industry in the
south. Preparing to market the larg-
est crop in the history of cotton grow
ing in the United States. the southern
people were looking forward to the
profits from the sale Of this their chief
staple as a stimulus to their purchas-
ing power, and so Of every form of IN
dustry in which they were engaged.
ly shut out by the war from the Euro
pean market, which has always con-
sumed large part of the American
cotton crop, the people of the south
were thrown back upon their own re-
sources with a disturbingly large pro-
portion of their chief money crop on
their hands and an inadequate market
price in prospect.
Industry Stopped.
Despite several futile plans of as
sistance from without, the south prac-
tically suspended for a time its indus
trial activities. The result was a fall,
as vertiginous 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 I'M
der review. For this company the sud-
den changed industrial situation of the
south meant a loss in revenues Tor the
fiscal year of 1851. 1922. or 1908 per
cent The development of the loss was
precipitous. July showed small increase
in revenue, August a decrease of 1.2O per
cent, September a decrease Of S.33 per
cent, while in October. November. Decem-
Der and January the decreases in reve-
nue. were, respectively, 1S.47 per cent, POS
per cent, 1897 per cent, and 1898 per
cent, with gradually improving conditions
during, the remainder of the fiscal year.
as the south again caught its breath.
Drastic Action Necessary.
"It was a situation which demanded rad
ical action on the part of the management.
When the first symptoms of the loss Of
revenue were felt plans of retrenchment
were made and were thereafter applied
progressively. This action could not be
brought into full effect for several months.
but the effort became both evident and
effective in March, 1915. The result for
amounting to $5.5S5,93S. and a balance
of income over all charges Of 1888, 369.32,
as compared with the similar balance (buu
in that case after provision for dividend)
Of $2,047. 1863 carried to the credit of
profit and loss at the end Of the previous
fiscal year"
In concluding the review of the diff
ficulties and accomplishments of the
year the president said:
There has never been year in the
company's history in which the stock
holders have had as much reason for
pride and appreciation of the officers
and employees, their work, their spirit,
their loyal self-sacrifice. The manner
in which a grave emergency was met
and dealt with illustrates at it's best
that discipline which distinguishes
true organization from mere cooper
alive society.
A Strong Organization.
Our organization. which has in re-
cent years been built and cemented
by strict adherence to the principle
of promotion for merit and reliance
upon the men made on the road, who
have faithfully stood by during all our
vicissitudes, has proven in this year
of need the greatest of the company's
assets, for 1t has fought a losing fight
and won"
All Exchanges Closed.
Columbus day. a legal holiday in New
York and other states. caused COM
plete cessation of activities in invest
ment and speculative circles. All ex-
changes were closed, although brokers'
Offices were generally open. clerical
spell to catch up with their records
Washington banks were open as usual
but the local stock exchange was closed
Wall Street Outlook.
Comment in speculative and invest
ment circles is favorable to higher
prices for railroad stocks, which have
as yet barely moved in comparison with
the tremendous advances in the favor
lite war stocks.
1t is in this latter list that all the
trading has been going on: in these
specialties that the odd-lot trader has
figured so prominently. locking up
many shares that may not come out
of vaults for some time to come: in
these specialties the widest trading
has been going on, and their action
will depend largely on the elimination
of certain negotiations looking to con-
solicitations and the ability of the allies
to so regulate sterling exchange that
they may continue their purchases in
the United States. even beyond the
loans already arranged for.
Further credits will probably be Sc
cured by American securities, of which
Great Britain IL still holder of thou
sands and tens of thousands of shares
and millions on millions of bonds.
The advance in the-rails is incons;d-
cradle though New Haven and some