The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-03-16
B. IND {. HEAD
SEES BR|GHT
OUTLOOK
Predicts Road This Year Will
Do Largest Business n
Its History.
BY MERRYLE STANLEY
RUKEYSER.

d-Ss D1 lA1IkN4O I1A1 kD4kA1NAAA14
RUKEYSER.
(Copyrighted. 1885. BY star Company
and distributed ~ Cosmopolitan
News servics.)
NEW YORK. March 16.-Grcw-
ing prosperity In the United States
is pulling many chestnuts out OF
the fire.
one OF the beneficiaries Of better
times 10 the Baltimore and Ohio
Railroad, which suffered conspicu-
ously from the war and its conse-
quences. 1t Is emerging from q
period of stress, and the high state
Of activity Of industries along its
lines is quickening the recovery.
Thus far this year the lcadings and
dentedly large for the winter sea-
son, and its officers expect more
business in 1923 than In any
previous twelve months in the
history of the road.
Willard Sees Good Outlook.
I discussed the problems Of the
Baltimore and Ohio with Daniel
Willard, president OF the road. Will
lard is seemingly more optimistic
about prospects than at any time
8lMGG 1914
After expressing his belief that
the company would do the largest
gross business in It's history this
year, Willard declared:
"All the districts through which
the Baltimore and Ohio passes are
in the midst Of great industrial
activity.
"The present railroad rate and
wage structure is such that we'll
managed roads ought to be able to
make satisfactory net earnings.
We are not asking for anything ex-
cept to be let alone. The present
railroad act IL not perfect, OF
course, but IL acceptable to us. It
would be well to get stabilized
under the present system, instead
Of being subject to tncessant
change. The adjournment Of Con-
gress will give US breathing spell
Of at least ten months"
States b. and O. Policy.
Asked regarding dividend policy.
Willard said:
sour policy Is to pay dividends
from earnings. At least that has
been our policy. cannot under.
take to predict what the directors
will do. I think that policy has
been sound, especially from the
standpoint Of the bondholders,
whose position would have been
weakened II the company had
dipped into surplus to get funds
to pay the dividend on the com.
mon stock in order to maintain the
fiction Of being legal investments" -
Willard said that the company
was engaged in an attempt to get
it's freight and pasSenger-carrying
facilities back to the prewar level
OF efficiency, explaining that just
before the outbreak, Of strife In Eu-
rope the road was Fin its best physi-
cal condition. BY next July, he
said, the company's plant would be
as well off as 1t was in July, 1914,
and he further declared that by
next winter the road and the car
riers generally would have gone
long way toward catching up with
the recent growth Of the nations
factories.
Problem IL Refinancing.
Since last October, loadings of
the road have been heavy, Willard
said, and thus far this year with
out precedent.
The next two years will be cru
cial ones in the history Of the road,
for in 1925, $74, ,025 Of the roads
prior lien bonds, $44,991 $50 Of the
Southwestern 3'hs, and $6,124.6 800
of the Pittsburgh Junction and Mid
die Division bonds fall due and will
need to be refinanced. If the pres
emit rate of improvement In net
earnings is continued for a period
of time, the task Of refinancing will
be materially lightened.