The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-04-22
HAD A Good YEAR
FOrty-SecOnd Annual Report of
Rock Island Is Out.
Some General Railway Prob
lens Discovered by Officials.

charges and taxes during the year, the
company had a balance of income
avaiIab bic for dividends of $3.50
259.22, of which S3,567,695 was APP
Piled to the payment of the full dtvl-
lends on the preferred stock, leaving
a surplus credited to profit and loss
of 50 212, 564-22, equivalent to 2.95 PEI
cent on common stock
While this is not so much as the
property should earn and as we be-
heve 1t viii earn when conditions have
been readjusted. it is SO much better
than the result of operations during
federal control that we consider it a
most creditable showing" said Presi-
dent German The Rock Island Is
one OF the few railroads in its terri
tory which in 1921 showed an increase
in freight earnings, and altho present
conditions are not so favorable as in
1921 towards an increase in gross
earnings. we VIII make every effort
10 maintain the enthusiasm on the
part OF the operating staff and the
friendly relations with the shipping
public which that fact manifests"
The report shows that during 1921
the company made the following pay
ments in the way of capital MATURE
ties. Equipment notes maturing dur
ing 1921 representing maturing in
stallments of purchase price of equip
1nent in service. S2,OS6, OS6.SO; Cedar
Rapids. Iowa Falls & Northwestern
hallway company first moTtgag &c
bonds due October 1, 1891, an under
lying mortgage on main lines in Iowa,
$1.9O5, 900; collateral trust gold notes,
due October !. 1921. originally exc
cuted 10 provide part OF the funds
needed for the maturity on October I.
1919. of S5.50O,00O Cnoctaw, Okla
homa K Gulf general mortgage per
cent bonds, s3,5O0,00O, total, s7,491,-
O96.SO.
Earnings Affected by Rate Reductions
We also made provision during the
year 1921 for maturities due early in
a nnn
trust payments. 100000 Chicago
bank loans issued in 1918 in connec-
ton with the financing of the Mem
phis bridge and S4.5OO,OOO three-year
notes due and paid February l, which
We're issued in 1919 for the purpose of
paying for our one-half interest in
the Trinity and Brazos Valley railway
company said Mr.. German. The
payment of thess maturities rather
than their extension is of great benefit
10 the stockholders on account of the
reduction in the fixed interest charges,
which is Of particular importance be-
cause the net earnings Of the CONF
pany have been considerably affected
10y reductions of rates already in eff
feet and other reductions in contem-
plauon. In addition we expended for
additions slndv betterments s5.5O4.-
5l@.S3. which were financed thru the
government loan of S7,S62,O0O. made
in 1920
We advised last year of the pur-
fifty caboose cars The entire cost
was financed thru the National Rail-
way Service corporation, a private cor
pOration. not for profit, organized to
assist the government in financing
n iway equipment. Sixty per cent of
the purchase price of the equipment
was obtained by the service corpora
ion from private sources and 40 per
cent from the government. the latter
being secured by "a second lien on the
equipment The trust of the service
corporation. in which We are partici- |
pants, embraces new equipment pur-
chased by three railway companies, |
including our own. The corporation
has leased to each railway company /
the equipment purchased for il on
terms which will make the equip
u1ent become the property of the rail- !
way company after the payment of
fifteen years rental No initial cash !
payment is made by the carrier, but |
the rental provides a sinking fund |
which is applied against the purchase
puce. During 1891 we arranged to |
finance thru this trust fourteen addi- |
1ional MilIado locomotives and zoe /
coal cars, making a total of forty-nine |
thru this plan. The total value of /
this equipment is s2,941s352-
a Big Business in OIL
NO new lines or railway were built /
during the year, but 2-2S miles of sec
ond main track were constructed at 1
Little Rock. Ark The most impor- |
tant development along the lines of |
the company for many years was the |
increase in traffic obtained from the /
discovery OF OIL fields adjacent to our 4
lines. In January. 1921. the first oil /
we'll was brought in at FL Dorado. Ar i
kansas. and since that time 4T9 pro- |
ducing wells have been brought in in 1
that field. Of which 462 were oil wells |
The agEre gate daily production from |
the field has been about $4,000 bar /
rels- Up 70 January 81 1892, 1885, !
$40 barrels had moved by rail, of /
which this company hauled approxi- 4
extends thruout the length OF the 4
field about twelve miles. While no /
great production has been developed /
on this right of way, the company has
profIted greatly from the traffic de-
velopment- In 1890. the earnings of i
the FL Dorado station on all freight
traffic was about 100000, and in
1921 about S2,T00,000
There have been new oil devel- /
opments also in the vicinity of Dun
can and Walters, Okla The field at 1
MeXia, Tex. which was developed in |
1921. promises TO be a much larger
producing field than the Ell Dorado |
field. This is located on the Trinity
and RrazOs Valley line, of which the
Rock Island ~ one-half owner, the
other half being owned by the Col
The Trinity a Brazos Valley has been
a losing venture for many years. and
II IS with great satisfaction that we
observe this oil development along
its lines.
Failed TO Make ssGuaranteedf' Return
THE TRANSFORMATION act REQUIRES
the interstate commerce commission
to Tx rates so that the return upon
the property OF the carriers by groups
shall be s L per cent per annl1u1. The
commission attempted 10 do this in
August, 1920, but the depression in Il
business beginning during the au-
tuTnn OF that year and still continuing
curtailed the movement of traffic to
such an extent that the return con-