Evening star., 1923-01-18
SOUTHERN RAILWAY
MAKES FINE GAINS
Expected to Show $3.50 Per
Share on Common in 1922.
- Financial Notes.

Southern railway is expected to
show $3.50 share earned on 1900
600 shares of common stock In 1922.
according to we'll informed circles.
In fact, 1t is considered that South
ern paid only one preferred diyi-
dend at 215 per cent, requiring $1,000
600. there will be left from earn
ings in 1922 an amount equivalent TO
better than 5 per cent on the COM
mon stock after payment OF the one
Semi-annual preferred dividend.
Last year was in reality the first
time the management has had an op-
portunlty to show what could be done
with the road double-tracked. Just
when the double track was completed
rhe road was taken over by the gov
ernnent. The showing is remarkable,
since gross revenues, despite the
strikes coupled with increased op-
erating expenses in the period. are
expected to exceed Sl2S.536.0O0, ap-
proXima ting gross of 1921. The dou-
hie-tracked line is the main stem be-
tween Richmond and Atlanta.
Inc following estimated earnings
Tor December and first week of Janu-
ary indicated the stride Southern is
maintaining:
Roads Fine Showing.
Estimated gross for fourth week or
December, 1922, is $4137.0OO, against
S1,S5l 900 in fourth week in Decen-
per. 1921, an increase Of $TS6,00O. or
E6.f6 per cent The estimated gross
t.9r 2r dIn The month OF December. 1922. is
Samo month in 1921 OF $10,504, 900.
! cent.
Estimated gross for the first week
Of January, 1928. is $2.5640O0. against
S2.04f.000. increase of S52o,0Oo or
.: :i5 per cent
Operating ratio (without taxes) for
eleven months of 1922 was 1906.
period of 1921 Saving in operating
expenses was $9790,0 600, or a.97 per
cent. In 1921, with gross of S12S.-
10000, the year closed with only
S20@6,000 available for dividends, or
.eSs than 3l2 per cent on the pre-
ferred stock.
Preferred dividend at the old rate
was per cent, paid semi-annually. II
Is non cumulative and it is not likely
that the 2i2 per cent not paid in 1922
VIII be considered later.
For fifteen years the Southern
faced hand mouth financing. This
IS no longer a burden, as no further
: financing is considered necessary for
years.
Cotton Great Factor.
Advance in cotton has materially
contributed to the general improve
ment of territory served by Southern.
II Is not so much shipments of cotton
that mean increased revenues for car
riers as goods purchased with profits
from cotton sent back into the terri
tory. Southern holders of common
stock are optimistic over the possi-
bilities of Southern railway as re-
fected in its ability to recover so
rapidly from effects of the strikes.
Heavy bookings Of southern iron fur
naces for 1923 further reflect the de-
, EeIopment OF that industry in the
Birmingham district, served by South
ern. Revenues from iron products
nave registered steady increase for
several years.
Advance in price of Southern common
10 2S1s is believed fostered by investors
who believe 1922 earnings warrant high
er price for the junior issue. Southern
: investors are reported participating in
recent purchases
Broker Service Extended.
Extension of service TO the Wardman
Park Hotel with private wire connec-
tton to their New York office. was an
nounced yesterday by Morgan, Liver
more & Co, members of the New York
stock Exchange, who recently opened
a branch office in Washington at S33
18th street.
Commercial National Elects.
r. Golden Donaldson was reelected
president of the Commercial National
Bank today. Other officers reelected
president; James 3. Reynolds, vice
: president; James H. Baden. vice pres
dent and cashier: Laurence A.
Slaughter, vice president; Herbert ".
Hunt, J. Sendall Cain. Robert A. Cis-
sci and Walter j. Harrison. assistant
cashiers. T. Blackwell Smith, former
managr of the savings department,
and +. II. Cox. note teller. were elect
ed s assistant cashiers.
Mr. Mellon Explains Loan Act.
An amendment to the victory lib
erty loan act to make the sinking
fund applicable to the refunding
issues of Treasury bonds and notes
was reported today by the House
ways and means committee.
Secretary Mellon in urging such
legisla tion informed the committee
that if the law was not changed in
, a4smuch as all victory notes will ma
ture May 90 next, the sinking fund
soon would apply only to liberty
bonds, as it did not cover Treasury
notes or bonds or other refunding
issues.
This would create an unfortunate
situation and one that might be
embarrassing to the government"
the Secretary said, 'tfor conditions
are likely to arise in which it would
be difficult or even impossible to
purchase liberty bonds for the sinking
fund at an average cost not exceed
ing par and accrued interest"