The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-04-22
Railroad NeuOs of Week
CHAS. w. LANE

/ airy. 1872. where an increase IN rrar-
fic is accompanied by a substantial
decrease in gross revenue. which we
have barely been able to offset by the
most rigid economy.
THE only cure for the situation, as
! we see IL, is further reduction in OPP
Grating costs, including the restora-
ton of labor to its old efficiency on
| a fair wage basis That the labor
situation is condition and not a
theory is illustrated by the following
statement:
"The Rock Island Lines had on De-
cember 81, 1917. at the beginning of
federal control. 4O,S26 employees with
an annual pay roll Of $40, IS, O..
February %, 1920, at the end of fed
eral control, we had 1880 employees
and a pay roll of ss4.315.3e5. De-
cember 81, 1921, we had 37,097- en-
/ ployes and the pay roll had been re-
| duced to s6s.1s2,3s4, but was still
$4,000, 900 larger than it was at the
beginning of federal control. More
over, the labor is performed under
conditions, fixed by law, which. in our
judgement, do not tend to increase its
| efficiency"
Flags the Capper Bill.
| In referring to the federal valuation
placed upon the Rock Islands prop
| critics, a valuation which the company
1 regards as being much less than the
| actual value, the rate of return under
/ the Transportation Act, and labor
| conditions, Charles Hayden, chairman
of the board of directors, said:
/ "A bill is pending in the United
States senate, introduced by Senator
Capper, of Kansas. which, if passed.
will undo a large part of the good
accomplished by the Transportation
| Act and constitute a long step back
ward in railway regulation. Its pur-
/ pose is not only TO repeal the section
of the Interstate Commerce act re-
curing the commission to fix rates
at a prescribed level. but to deprive
Interstate Counr0prra commission
of all jurisdiction over rates within
a state, no matter how seriously such
rates may discriminate against the in
terstate rates. The effect would be
to give every state commission prac-
tfcally exclusive jurisdiction over rates
within the state, with no remedy
whatever to the carriers to protect the
revenues provided by the Transporta-
forecast by reference to the long
series of adverse state regulations be-
ginning in 1907. and ending in the
cataclysm of federal control
Was Fairly Successful Year.
THE officers of this company are
pleased at all times to advise the
stockholders concerning its affairs.
We ara closing a fairly successful
year Indications are that our return
in 1921 will be between SIG, 1000, 900
and sI7.OOO,OO0. which is sufficient
for all fixed charges and the full divi
dends on our preferred stocks, with a
margin of about per cent for our
common stock; whereas 6 per cent on
the fair value of our property is, on
the governments own figures, not less
than $22,000,000.
I'VE call these things to your atten-
ton because it is to your interest as
a stakeholder as well as to the inter-
est of the public, that railroad credit
shall be maintained. The Rock Is
land should be financed by increasing
the number of partners rather than
increasing the number Of its creditors,
that is, with stock rather than with
bonds. This means that we must be
allowed a more liberal basis of earn
ings than a maximum which merely
yields the cost of operation plus the
going rate for borrowed capital and
leaves the risk with the investor"
Operating Expenses Cut.
The Rock Islands total operating
revenue in 1921 was $139, 272,024.0 |
as against s1z2,026, 151.52 in 1920, a |
decrease of S2,754,127.51 or 1.94 per
cent Operating expenses, however, |
were reduced 14.1O per cent. They |
We're s119,953.057.1s in 1921, as
compared with $131,49S. 703.67 the
year before. This left a revenue from |
railway operations of SIS, 31S, 966-s2 in |
1921, as against $10,52T, 447.S5 in I
1920. Tax accruals in 1921 amounted |
to $3.50, 722.36, an increase of 3d. !
1929 or .06 over the year before.
After deducting the tax bill and un- /
2S5.1O, there was left in the year 1921
a net railway operating income of
$50 .O0e-36. To this there was
added other income of $2.41T. s21.9a, 1
S17,271,5 72.13, leaving a net income
for the year of $5,7S0,259.22.
The increase in the company's divi-
dends on preferred stock was only
ing been paid in 1921. as against So
56f.4s5 the year previous This lert
81, ,646-6s, equivalent to 2-95 per
cent on the common stock, to be
making a credit balance December 81,
1921, OF S16,5s7, 017.7s.
Additions and Betterments.
The companys Investment in road
and equipment December 81. 1920,
was sS64.933. 254.96 to which $685.
9s3.ss was added during the past
year.
a total Of s1.166.o2161 was spent
in rebuilding freight cars; $685.
o9o.51 for thirty steel coaches. and
$165, 9S1-sS for five steel chair cars.
Expenditures for additions and bet
terments included s22S.S24.01 for
grading; $544.2Os.01 for bridges. tres
ties and culverts; sS75,S22.11 for rails;
sT92,4SS-S6 for other track material;
1919, 5S5.93 for ties; $210.359.45 for
water stations: s3s1, 9O7.s7 for assess
nents for public improvements. and
s27 4,07S for shop machinery.
Track Rental Increased.
The Rock Island paid the Union
Pacific $191.79S.43 for tFackage rights
between Topeka and Kansas City dur
ng the year, which was s2Sr657.77
more than it paid for the same privi-
ege in 1920 It has a 99-year lease
with the Union Pacific for this right
The Rock Island also paid to the
Union Pacific. in 1925 s4115e.24 for
rights from Council Bluffs
% South Omaha, and SCI, So5.29 for
he same privilege between Limon,
Colo. and Denver. The total which
he Rock Island paid out for track
lge rights or rentals in 1871 was SS65,-
s9S.7S. II also paid out $3.50. I95. 81 |