The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-29

or NAptGfuD@E 49, AH4Ot AnpWB d uSl
operating income for the year 1918
of approximately s7,955, 600 But for
1916, because of the drastic policy of
the receivers in putting everything
back into the property, this fell off to
$4,T12,00 tthese figures represent an
approximate average of calculations
made by two leading railroad banking
concerns). II lis hoped that the gov
eminent will calculate the income OF
this year more literally, but these fig-
ures were based upon the most con-
seryatlve possible estimate. For 1917
the net operating income was about
1886. 600. Thus the average for the
three years was about s6.734,0OO
The fixed interest charges which
still remain against the road, accord
ing TO the receivers annual report of
December 81, 1919. amount to se,514,-
36i. Thus, there is on this average
sufficient income guaranteed to the
Missouri, Kansas & Texas to meet all
its interest charges and leave an an
pual surplus OF about $4,000 for the
sinking fund. 1t will hardly fall be-
low this, and If some allowance Ia
made for the extraordinary expendi-
ture OF more than 100000 in the
year 1915 by the receivers for main
tcuance, structures. and equipment
In other words. for improving the
physical condition and efficiency of
the property and making 1t better
Instrument for the government--it
will he better than this by more than
$500 900. Therefore, the Missouri
Kansas & Texas. although in receiver
ship during nearly all the three-year
period. will probably be returned to
its owners at the end of the war, If
anything, in better shape than when
It was taken over.
The Rock Island went into recetv-
ership IN the summer OF 1915, about
the same time as the Missouri, Kan
sas e. Texas was reors;anized In No
yenber, 1915, and has since been
considered in sound financial condi-
ton. It's net operating income for
1913 was about s11. zoo, 900: for 1915,
$15,2s5,0oo. and for 1917, $1e,400.-
06o There Is great difference Of
opinion as to the proper estimate for
the Rock Islands income than for the
NJ. X. e t., but these figures represent
an approximate average The aver
age for the three years WAS about
S1b,295.000, Fixed charges for this
road, including the promised return
Of Per %nd per cent on the
two classes Of preferred stock. which,
in view of the guarantee which sc-
companled their issue as part of the
reorganization plan, may he consid-
cred fixed charges, amount to about
$4,000 coo Therefore, under gov
eminent control, tho Rock Island can
pay all its fixed charges. including
preferred dividends, and count upon
an annual surplus of abont $685. Oe
Balance of Million Assured.
The Missouri Pacific went into re-
ownership on August 10, 1915. and
was reorganized I'm the fall of 1919.
TIE net operating income for 1915 was
about S12,030,000, for 1915 about sI2.-
os0,ooo, and for 1917. after reorganl-
gatton. about S1a3s0. 000. The aver
age was about S14.50o 900. Interest
charges amounted to about SsS0o0oo
The road can be counted upon, there
fore. under government control to
continue to pay it's interest charges
with a surplus of s4.T0o,o0o, which
would pay It's preferred dividend Of
Sa,5Q4,o0 and leave balance OF we'll
over 100000 n year
The New Haven earned a net 90,
Grating income In 1915 of s9,s2B,0o0,
In 1915 Of s11.T65.o0o. and In 1917
OF $1l.700, 900, 1t 10 no secret that
the net earnings OF this road have
fallen off worse in the last half year
than those Of perhaps any railroad
In the country, so that government
control and a guarantee Of its income
may prove II tiT2~SAVsr. The average
for tho three-year period is s11,0T6,-
600, and the company also receives
an annual income, IN interest pay
ments md dividends Of its subsfdtar-
les OF $4.560. 900, giving a total in
come to be expected under govern
meut control OF s15,e8s.000 It's in
terest charges amount, In round fg-
ures. to s1f 900 600, so that approx
mately s4,6SSs000 year will be left
for the tockholders--equal TO 2 per
cent on the capital stock. The New
Haven has paid no dividend since
1914. in which year It paid IL per
cent.