New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-10
Efficiency Helps
To Swell Profits
Of Southern Ry.
Premier Year in Company's
History Due Partly to
Better Railroading

All previous records OF the Southern
Railway Company. both in respect to
the volume Of traffic and the earnings
therefrom, were broken in the fiscal
year ended June 80 last. The annual
statement issued yesterday at the
meeting Of stockholders. held at Rich
mond, Va, showed gross operating
revenues for the system of S8l 1888 1926,
compared with $69,997, $40 in 1916. Net
operating income aggregated S27,75S,-
1879. against s23, 956,559 a year ago and
Sl6,024.7 9S in 1915. Net income. after
taxes and interest charges. totalled
S12,S60, 16l. equivalent to $3.50 share
earned on 1920, 1000 common stock.
after allowing per cent for the pre-
ferred dividends, compared with $5.27
= share earned on the common in 1916.
New Directors
At the annual meeting Augustus d.
Juiliard, of New York. and Jackson +.
Reynolds. president Of the First
National Bank Of New York. both con-
nected with institutions having large
interest in the securities Of the South
crn Railway Company. were elected
directors to fiji vacancies. The other
directors were reflected Three -fourths
Of the total stock of the company was
voted at the meeting. which was open
to the public.
Fairfax Harrison, president Of the
system. in discussing the years show
ing. points out that expanding business
has brought in large returns. but 1t
has set higher than ever before, and
perhaps higher than is economically
warranted, the standards of expense.
He says:
Total revenues were S6l ,388 1924, an
increase of l446 per cent over the
previous year. OF this there remained,
after paying out 70.l0 per cent for the
expenses of operations and taxes, a
net operating income OF s24,33l ,io3.
This Is equivalent 10 5.97 per cent
earned on the property investment Of
the company. which is S407 ,6Ss, l5l. The
final balance Of the corporate income
over charges was l2,360,l6l, sum
which exceeded by s3,026,262 the like
balance of last year and the previous
record. This income balance enabled
the company to spend during the year
S1041S,667 for additions and improve
ments upon the property over and
above the proceeds OF the Atlanta d
Charlotte Air Line bonds. which are
-
ton.
Greater Efficiency
"The study and practice Of efficiency
of operations were continued, ana are
reflected in the fact that the average
trsinload and the average carload were
increased that there was substantial
decrease in charges for loss and dam
age of freight; that the balance of hire
of equipment is for the first time IN
four years on the right side OF the &C
count. and, most of all. that more than
seventeen million passengers were car
ried without the loss of a single pas
senger's life in a train accident. Up
Grating unit costs were, however, DIS
torted as compared with last year by
the large increase in wages which took
effect during the year and by the un-
precedented increase in the cost OF fuel.
"The property has been well nam
tanned; its physical condition was neveT
better than at the close of the year. The
roadway destroyed by storms and floods
in Julv, 1916, was restored, and the entire
cost charged 20 maintenance expenses
for the year. At the close OF the year
the percentage of equipment IN bad or
der and awaiting repair was 2.32 pei
cent of freight cars and $40 per cent
of locomotives figures which tell thelf
own story for preparedness.
The report shows that during the
wear there were completed 1871 new
manufacturing plants in the territory
served by the Southern Railway system
and associated lines, representing a
total capital of $44 ,5S5,280. Additions
were made 20 existing plants at cost
Of s1711l.S70, ana there were 50 new
piants under construction on June 30
1917, with a total capital Of slS,396,5OO
The cotton manufacturing industry con.
tinued 10 grow, and the consumption OF
cotton in Southern mills during the
twelve months ended July 81, 1917, ex-
ceeded that in the mills of all other
states By 001 ,638 bales.
President Harrison expresses the
opinion that in livestock husbandry the
South has made new declaration OF
economic independence. THE increased
production Of grain and forage crops.
he saws, "is putting the livestock in
dustrv OF the territory served on a
sound basis and is rapidly developing
| W. have continued our cooperative