New-York tribune., 1921-04-24
St. Paul Earns
Little Over lM
On Its Stock
0perating Revenues in 1920
Only So. .462, 900 Greater
Than Expenses; Insuffi-
| tieni to Pay It's Taxes
Is Dividends Were Paid
Road Has More Than $50
/ 900. 600 in Bonds Matur-
inc Between Now and s26

HE DctWeen NOW ana 20
IA com paratively few years ago the
eh;taro Milwaukee & St. Paul pre-
AIRED stock was considered an invest
s.ak suitable for a woman. In 1920.
sss1ver, operating revenues were only
Sasa,ooo greater than operating ex-
xnses and failed by ss,45l 900 to be
SFscient TO pay taxes. The corpora
dan. which was receiving rental for
4. frst two months of the year and
&,sYantv OF net income for the next
sr months. had S31 ,12S. 900 available
nr interest, rentals. etc, and after pay
~ interest charges had surplus of
1850 600. In 1921. however, it will
have TO depend entirely on railway
sueration There is Sf15,S49, 900 pre-
AIRED stock outstanding in the hands
sfthe public, and Silt, 100000 common
aocx outstanding. The amount earned
Il the corporation, therefore, on the
tatai outstanding stock was but a little
mare than l per cent. No dividends
ssre paid on either class of stock.
The Chicago, Milwaukee & St. Paul
snancial showing is not so different
Aou that of many of the weaker roads,
hut the St Paul's case is different from
ether the weak roads or the strong
Mads. The Chicago & Northwestern.
chicago Milwaukee & St. Paul. Mime
spolis. st. Paul & Sault Ste. Marie, and
ke Northern Pacific. and on the south
he Burlington, compete for the rich
srsin traffic Of the Northwest.
The Northwestern has close traffic
sgrsement with the Union Pacific on
ths west and has close relations with
lie New York Central on the east. The
500 is a subsidiary of the Canadian
pscihc, the Northern Pacific is itself a
;ranscontinental and the. Burlington is
sElied with the Great Northern and
Northern Pacific The last great piece
Of railroad building in the United
States WAS the extension Of the Chi
ego, Milwaukee & st. Paul from a
voint in North Dakota west to the
Iscifc Coast. This extension closely
mrallels the Northern Pacific. The
rason for building it was desire to
fet on all fours for through business
With its competitors.
st. Paul Burdened
sBy the time the Pacific Coast exten-
Son OF the ST. Paul was completed
Hilroad conditions had changed funda-
aentally from what they were at the
eme the extension was projected. All
nads began to show a decline in earn
lg power due to the Interstate Com
aerce Commission's refusal to grant
hcreased rates in 1910, and the St.
Paul with the burden of developing a
new line was handicapped at time
shen all railroads were lighting to
nsintain their credit in the investment
tsrker.
The St Paul's financial position is
atinla tely connected with a peculiarly
dfcult and complicated operating
problem. After rebating had been
aopped competition in the Northwest
| pck the form of improvement IN serv-
ice. The lines are so close together in
many places in the wheat country that
Theat growers can take their choice of
+ Two lines. approximately the same dis
ance away from their farm. The re-
Mt has been that the various roads
have held out special inducements in
The way of facilities for loading wheat,
furnishing cars promptly and allowing
milling in-transit privileges.
The competition in passenger traffic
vas just as keen The St. PauPs the
ny Of competition was to get the bust
sess even at nigh cost. It's passenger
Rrvice was high class. 1t runs it's own
Aeeping cars and an attempt was made
b build a little more comfortable and
luxurious car than the Pullmans in ser
nee on the Northwestern and North
On Pacific.
Competition in dining car service was
/ teen. and in st. Paul the Chicago. Mil
Naukee & st. Paul was considered tG
aaye the best dining car service in the
Northwest. Both in passenger and
freight service this means rather high
peraftg ratio--that is, ratio of ex-
FrseS to revenue.
Plan to Get Through Traffic
IA glance at the map of the Chicago,
Milwaukee & ST. Paul before the Pa
afc Coast extension was built would
how network of lines covering the
erritory from Chicago to Duluth and
sest to the Dakotas. Having no western
pnnection it was difficult to get a
arge volume of east and west-bound
alrough business for the ST. Paul,
While both the Northwestern and the
Northern Pacific had a large percent
Ke of this business. Through busi-
Hss handled in heavy trainloads can
e carried at a low operating ratio
khe result was that both the North
Tn Pacific and Northwestern oper-
fing ratios were pulled down by the
Hrough business handled, while the
y. Paul's business was largely a. short
aaul, cross traffic business. In other
words, their operating ratio was about
nigh on competitive business as
vas the st. PauPs, but they had some
aing to Offset it.
Stne St Paul, until very few years
go' had system of organization n
soch put premium on mans stay
Hg IN the service. Prom otion, where
@ssloie' went by seniority, and, as on
y pennsylvania, promotion was slow.
man was likely to have reached mid
e age before he became general su-
Nrlntendent. The very facts that
Isoe for loyalty also tended to get a
Tf1aln amount of dead wood into the
sanitation.
All of these things combined, work
s On the st. Paul in period when
Ssen nc the strongest railroads were find
..s u difficult to install operating
ss'nomies which would Offset increases
= lapor, fuel and material costs, have
,,ss'en ,ha the st. Paul much further on
tors, A0"0 ''"h ITO Son'p0S'7
Bonds Maturing
netween now and 1925 the st. Paul
raa roughly, s54,o00.O00 of bonds ma
~ Before these bonds become
n~s. re, u would appear that the st. Paul
i-ss work out its operating problems.
sss'esiVes under present rates consid-
Eoss more than one cent ton mile
sa, us odr d1reight. The average for 1920
,ss ,sss i:oz9 cents, but the higher rates