New-York tribune., 1922-01-08
Four Strong Railroads

Question: shan bc deeply yraterul If
YOU Will inform me which railroads are in
our lNuSinenf, IN the strongest position
Yer the fCturc.-E. l.. G.
Answer-The Chicago, Burlington &
Quincy; the Atchison. Topeka & Santa
Re, the Norfolk & Western. and the
limos Central are among the railroads
tNai are IN the strongest position for
the future. All four are we'll and evenly
developed physical properties. Their
standards of roadway and equipment
are high. All four have strong organi-
zatlons. Both these factors are mat
ters of temporary. not permanent, con-
ditlons. but without both of them a
road is severely handicapped in competi-
ton IN future Developments All four
nave sound financial structures with
comparatively low fixed charges and a
volume of stock which is quite surely
less than the value of the property over
and above the face value OF bonds out
standing. This is of great Importance
as any railroad man knows who has had
to struggle along with inadequate facl-
ties and Inadequate maintenance in
order to meet too heavy interest
charges. OF fundamental Importance in
Judging of the Developments OF the next
htteen or twenty years are the geo
graphical location and the character of
the traffic of these four roads. The
Burlington has q base line which covers
the three all-important gateways. St
Louis. Chicago and the Twin Cities. It
extends west from this base line to the
Rocky Mountains: first through the
rich but still developing Middle West
ern States. then through the recently
put rapidly developing State of Ne
braska into Colorado and Wyoming.
where development is just beginning.
"here the Burlington meets competi-
ton 1t is generally the dominant factor
IN the situation. Nearly everywhere it
- working under the law OF increasing
returns. The Atchison, Topeka & Santa
re. extending southwest from Chicago
20 the Gulf and west to California, and
competing on equal terms with the
Southern Pacific from San Francisco
south to Los Angeles, is like the Bur-
hngton IN that II is working under the
law of increasing returns. Unlike anv
one of the other large Southwest tern
systems, however, it has a negligible
amount of Improbable mileage AL
most everywhere that it has extended
its lines or has bought lines, profitable
traffic has been developed 1t has
feeders, but very few suckers. 1t taps
Colorado and is developing the south
eastern portion in q way similar to
that of the Burlington's development of
the northeastern section. The Illinois
Central has a strategic position which
is not equaled by that of any other
north or south road A large propor-
ton of the traffic carried by the road
originated on its line, and it, therefore.
has an advantage as against nearly all
connections, since it has more loads to
offer than any one of them can offer in
exchange. Unlike the Burlington or
the Santa Fe, however, it is not at all
times working under the law of in
creasing returns. Its terminal costs
are high but its terminal position in
Chicago, even with the high costs, is an
invaluable asset. We nave no doubt
that many railroad men would substi-
tute the Union Pacific for the Illinois
Central IL our selection. This is a mat
tersot opinion. The Norfolk & Western
serves the richest bitumnous coal field
m America, the Pocahontas region II
carries coal both east to tidcwater and
west to the lake ports. There are enor-
nous undevcloped coal fields tributary
20 the Norfolk &, Western and large
part OF this undeveoped acreage be-
longs to the Pocahontas Coal Il Coke
Company, all OF the stock Of which is
owned by the Norfolk & Western. This
IS a factor of the greatest Importance
IN Judging Of the strength of the COM
pany in the future.