Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-28
RAILROAD
SHOW LARGE GAINS
Many Carriers Report Sub
stantiaI Increases Over Last
Years Revenues.
Special Dispatch 10 The Star.

Special Dispatch 10 The Star.
NEW YORK, August 2s.--Splendid
earnings for July and for the first
seven months of the calendar year,
prospects Of financing through the
issue of stocks by those carriers whose
shares are selling at a premium over
par, and some dividend sincreases In
the next few months have provided the
groundwork on which a strong market
for railroad securities has been erected.
One OF the significant developments
was the announcement that came from
the meeting Of the directors OF the
New York, New Haven & Hartford. at
which their quarterly dividend was
raised from 4 to S per cent. This was
to the effect that the company intended
to issue stock in 1880 to take up obli-
cations. due in that year. This illus
trates the remarkable change that has
occurred in the affairs of a railroad
whose common stock last year sold be-
low IS. but has since risen over 70
points and is now paying a very re-
specially sized dividend.
Other Reports.
1t was also reported that the Penn
sylvania Railroad would offer its share
holders the right to subscribe to addi-
tional common stock before the end of
1929. There were rumors that with
earnings increasing at the present rate.
the directors might raise the dividend
on the stock to 10 per cent. In July
this road increased its net, operating
income $4142.000 and In the past seven
months this item has shown gain Of
nearly $18,00O,OOO
The basis of the talk of higher rail-
road dividends was to be found in the
earnings statements published in the
last few days by most OF the prominent
railroads Of the country. One of the
popular rails" this week has been Chi
cago & Northwestern. whose stock has
advanced to the highest price in 10
years, or since the dividend was reduced
from per cent to per cent. For the
seven months period this year North
Westerns operating income has in
creased In an amount equivalent to
about Is. per cent on the common stock
which means that the road should earn
between SO and 50 in 1929, or SUFFICIENT
to justify an advance in its dividend
from 4 to 5 per cent. Great Northern. in
the same seven months has expanded
its income to the equivalent of 1l2
per cent on its capital stock. promising
earnings for 1929 of nearly IL per cent.
although these may be shaded in the
last five months of the year, which
lions In the territory Of the road.
Remarkable Showings.
Another road that has made an ex-
cellent showing is Southern Pacific.
whose operating income was % per cent
higher for the seven months TO July
81. than in the same period last year
and equal to an additional n per cent
on the capital stock. promising earn
ings of nearly IL per cent for 1929.
These results incline Wall Street to the
belief that the Southern Pacific divi-
dend may be raised within short time.
The most brilliant of all Of the
revenue statements for seven months is
that of the Atchison, which shows an
increase in operating income Of over
$4,000, 900. equal to nearly 534 per cent
on the common stock. Another excel
lent exhibit is that of the Baltimore e.
Ohio. whose net income has increased IN
seven months over $4,000 900, or nearly
az per cent on the common stock. which
Justified an increase in the dividend this
year to per cent.
other roads that prospered in July
whose net operating income increased
about l25 per cent over last year. This
exhibit. however. has not prevented the
common stock of the road from selling
this week at the lowest price OF the year.
the financial district has selected as the
OF its investment holdings. has in
creased its operating income in seven
months nearly 100000. II main