New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-04-18
'Atchison system
Earns Equivalent
OF Sl4.bI a Share
Net Operating Income at the
Rate of SIS q on Tenta-
tive Valuation; Expendi-
tures Are Reduced 30 C

nsspite the great slump in traffic dur
:.r the FIRST two months of last year
~ A;chison. Topeka & Santa Fo Rail
u1s net income available for divi-
lands was, with one exception. the larc-
-. in the history of Che company. Net
.,,norate income totaled $50 ,3si,661.
,,ro equivalent TO S14sl a share on the
go 80. 500 Of common stock outstand-
nc g, the end Of the year, after de
acting the regular dividends on the
,,eferred stock After sundry appro-
rr;stjons the company carried over
sta4s500o to profit and loss surplus.
s,ishine the year with that item stand
M at slos,S45.ooo.
On the basis Of government guaranty
4,r tive mo7:@s a11 compensation for
9, additiona. SIX months, the AtchIson
.ys.er earned s37.634,00o or the eouj-
silent Of s1403 share, in 1920. Com.
narison Of purely operating results for
Two years brings out the following
facts: Gross operating revenues in 1921
decreased S25323,000 and fetal operqt-
jnr expenses decreased 31,4S4 900. The
savings affected by the Atchison svs-
tenn last year through curtailment Of
expenditures pn maintenance OF way
and ecu pmeUJ we're proportionately
much smf Ter than those of most of the
large systems that have released their
Ie2l earnings statements thus far. The
total decrease in expenditure on these
Two items was St4,290.O00, and this was
only about 36 per cent of the net cor
porate income. In the case of several
Of the other large systems the saving
in maintenance ranged from 100 to 500
per csn OF net corporate income
The explanation for the relatively
more favorable showing of Atchison
lies in the fact that during 1920, when
q majority Of the carriers were showing
losses on operations, the Atchison sys-
ten earned substantial percentage on
its common stock without regard for
the government compensation and
guaranty Net operating income of
SAL PCS 600 in 1921 compared with S37,-
$4,000 in 1920.
The &c earnings statements. coupled
with the balance sheet as of December
81. 1921, explain why the Atchison has
been able to keep out of the money
market during the las Two years Of
extensive corporate financing At the
end Of last year the company held in
its treasury S33,677. 600 cash, and in ad-
dition, the Atchison and its affiliated
railway companies owned $40 1855, 900 of
Liberty bonds and Victory notes.
Neither the company nor any of its
auxilaries had any notes or bills out
standing. Total current assets de-
creased S40,999000 to a total of $751;
10000 during the year but this reduc-
ton was almost entirely accounted for
by the elimination of 1858, 900 gov
eminent compensation accrued I'D to
the end of 1920 Current liabilities
stood at S28,279 600, decrease of $21,-
$4,000
The tota. charges to capital account.
as shown in the balance sheet, aggre-
gated S848,331 600, an increase during
the year Of SGT $4,000. This increase
was accounted for by construction and
acquisition of new mileage. including
the acquisition Of stocks and bonds of
other companies; additions and better
ments to fixed property and equipment
ana Investments in terminal and col
lateral companies. The common stock
outstanding was increased $3.50 900
during the year through the issuance
Of shares in exchange for convertible
bonds. At the same time the outstand-
ing funded debt of the system was re
duced S1.lS4,000 to total OF $685.
S8s,S69
The net operating income was at the
rate of 5.l5 per cent on property valua-
ton tentatively placed at $799, 900 900.
On the basis of this unofficial valuation
the Atchison would have to earn over
s4S'OO0,0OO before any part of its net
operating income would be turned over
to the government.