The Birmingham age-herald., 1916-06-05
REORGAN|zAT|ONO OF FRISCO RAILROAD Receivership of Company to Be Wound Up by
 September 1

The reorganization of the Frisco rail-
 road, which has been in the hands of
 receivers for many months, may be wound
 Up by September l, according to authorita-
 tive information received by industrial
 leaders in Birmingham. It is announced
 that all legal matters are now being rap
 idly cleared for the consummation of the
 reorganization and the launching of the
 new company. The Missouri public serv-
 ice commission has tentatively approved
 the plans for the reorganization, with
 the exception of that part relating to the
 voting trust, and it is announced that
 this matter will be settled without seri-
 ous difficulty or delay
 The reports of the receivers of the line
 during the past year have shown a rec
 ord business, and the system has been
 operated more economically than at any
 time in it's history. Despite heavy in-
 creases in maintenance expenditures, a
 satisfactory surplus for the fiscal year
 will be shown. according to these reports.
 For the month of April alone the gross
 increase was more than 20 per cent, and
 although there were large increases dur
 ing that month for maintenance and
 equipment purchases, the net earnings after taxes showed an increase of more
 than 32 per cent.
 The following concerning the reorgani-
 zation is from the Wall Street Journal of Saturday:
 tentative approval of the Frisco railroad reorganization plan, except that part re- lating to the voting trust, should clear away the legal obstacles in the way of an early reorganization of the property Failure to approve the voting trust provision of the plan is not serious mat ter. In fact it is believed that this does not come under the Missouri commission s , jurisdiction and the supreme court will be called upon to decide this question. Ut is expected, therefore, that the re- organization will be finally consummated and that the new company will start business by September 1, next.
 "The new company will be launched un-
 der perhaps the most suspicious condi- tions in the Frisco's history. The com psny is doing a record business on the most economical transportation basis ever reported, and showing earnings of sub- stantial proportions in excess of fixed charge requirements on the contemplated reorganized basis.
 Surplus for the fiscal year. in the face of an estimated increase of $2,350.0OO in maintenance expenditures for P months will be $1 100000. It is evident therefore that if the management had chosen tC pursue last years maintenance pro- gramme this fiscal year. the surplus earn ings could be made to show $35OO.0O0 after fixed deductions.
 April was a good month for the com pany. Gross increased $696, 900, or 20.5 per cent, and although maintenance of way and equipment increased respectively 24.' per cent and 27S per cent, net after taxes increased s273,OOO or 32.s per cent. The increase in maintenance of way expenditures was $133OO0 and in equipment expenditures $144,000.
 Tn 10 months to April 30 the company this year has earned more net after taxes than it did last year in F months, The 1 net increase for 10 months was $1,444,20; which more than takes care of the $ ,2S4,- 900 deficit reported for the fiscal year | 1915 Net for 10 months averaged $1,112, ,00t | a month Aprils net was $1. .122, ,OO0.''