San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-23


locations for next year. -Four raen
were elected, and all four are minis
terial students, non-fraternity men,
addition to maintaining the property
from earnings, So, 722, 127.0O has been
spent for permanent improvements all
Of which has gone to better equip the
properties for the service of the pub
lie and to yield larger net income from
the gross.
Gulf Coast Has Good Credit
'The book cost of Gulf Coast Lines
including all subsidiaries, amounts at
present to $40, 53S, 1920 and the to-
tai outstanding stock and bonds
amount to $34, 255, 10000, leaving
$11 ,2S3, 1921 90 invested in the proper
ties for which no securities are out
standing and upon which no return
is being paid for the use of the money.
This may account for the fact that
first mortgage 6 per cen. bonds of the
Gulf Coast Lines are now selling for
about 1O1; non-cumulative per cent
income bonds are selling at about 81
and the stock at above par Shortly
prior to negotiations for this purchase
International-Great Northern first
mortgage 6 per cent bonds were selling
around 90; its adjustment per. cent
bonds were at less than 40 and It's
stock as low as 20. 1t is worthy of
note that upon the announcement Of
this purchase the market for these Sc
curities of both companies substantial
" increased. This is an evidence IL
public confidence IN the soundness of
the plan. We quote these figures
that the public may have its atten.
ton drawn to the fact, first, that
Gulf Coast Lines has a credit today
upon which it can procure at low
rates funds necessary for the proper
and substantial upbuildiug and
equipment Of the Internaticnal-Grc
Northern Lines, should they be ac-
quired, and, second, that the public
may understand that thc policy Of the
owners of the Gulf Coast Lines is to
rebuild, re-equip and add bettcrmcnts
and improvements to railroad proper
ties under their control to the end
that the properties may be operated
and maintained at smaller cost, and
the public served by the lines have
better and more efficient transporta-
ton service.
No Return For Yws.
THE owners of the Gulf Coast
Lines know that their returns. if they
come at all, must come from net earn
ings after all operating and maintcn-
ance expenses have been cared for
and they know as well that to reduce
these operating and maintenance ex-
penses in the future the physical
of the railroads must BE-
built up and betterments and improve
ments and equipment provided. The
public is interested in service: the
public wants good railroad; It
wants safe and substantial track
and wants necessary improvements
and equipment. All this is a matter
of public concern. 1t is of first i'm
portance. When these things are
done and provided. the public is serv-
ed and is satisfied and the railroads
have the good will OF their patrons
but it follows as the night follows
the day that while these steps result
in benefit to the public. they result
also in reducing the maintenance and
operating costs and consequently IT,
crcasing net revenues. To reach such
an end by such method the owners
of, the Gulf Coast Lines went for
years with comparatively small re-
turns on their investment. Their
average annual return on their in
vestment from March l. 1910 20
March l, 1924, n period of fourteen
wears. was 80 per cent per annum
but meantime. the properties Of the
Gulf Coast Lines have been substan-
tally rebuilt and improved so that
they not only serve the public decided.
Is better and with greater efficiency
than heretofore but their maintenance
and operating costs have decreased.
1T IS our view that the bringing Of
these lines under common ownership
will be of even larger benefit to the
lnternational-Great Northern Lines
and the communities served by them
than to the Gulf Coast Lines and
their communities. In 1923 the Gulf
Coast Lines earned in the operation
of their, 020 miles Of road net rail.
way operating income Of $3.50 670.02
as against the Ores.
Northern Lines earning on their 1t60
miles Of road net railway operating
income of $2.353. S6S.6G. the average
annual net Bailway operating income
Of the Gulf Coast Lines for the last
eight years is 5000. $4,000. while the
average annual net railway operating
income Of thn &c. y. for the same
period is sS4G,210.00.
Of Vital Importance to Houston.
"Not only does this indicate that
a larger benefit and strength will b.
added to the International-Gren
Northern Lines. but il. proves ne well
the wisdom Of the policy followed
by the. owners Of the Gulf
Coast Lines in building I'M ny ad,li-
tions and betterments their facilities
because this net railway operating
income is determined sitter the dcduc-
ton of operating and maintenance
costs.
The Gulf Coast Lines own a one
half interest in Houston Belt and
Terminal Railway Company and the
terminal facilities Of flat company in
and near Houston. Tie Information
al-Great Northern Lines own likewise
snlendid terminal facilities in the CITY
% Houston and the terminal facilities
Of these companies admirably supple
q. =.