Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-01-30
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 3O.-Now that
most OF the important railroad state
ments for 1923 have been published, it
is possible to obtain a more definite
idea OF what the directors of these
companies may regard as conservative
action in the way of dividends to be
declared in the first half of 1929.
The remarkable feature in a ma
1orlty of the statements issued is the
higher percentage of net increase in
earnings over the previous year, COM
pared with the showing of gross reve-
nues. This reflects in large measure
greater efficiency in operations due
to more amicable relations with labor,
improved loading and shop methods
and the use of larger units both of
cars and Of locomotives. Some portion
of the net gain also has been due
TO reduction in maintenance charges
after several years of blowing back"
earnings on a large scale into railroad
properties.
Significant Gains.
Among the Eastern roads those that
have made the most striking gains dur
ing the past year are the Pennsylvania,
Baltimore 81 Ohio, New Haven and
the Erie. The Pennsylvania shows
earnings in excess of $14 share and.
while it did not increase its dividend
last week, there is strong eXpecta-
ton that it may do so before the end
of 1929. The Baltimore & Ohio was
able to show net operating income
in 1928 nearly as high as in 1926,
although gross earnings were about
SCI 100000 less than in that year. Wall
Street confidently believes that the divi-
dend on Baltimore g. Ohio common
stock will be raised to z per cent next
June. The Erie had more gross in 1928
than in 1927 and a surplus over charges
S7,500,000 greater than in the previous
year. 1t will probably resume dividends
on its preferred shares within the next
three months. The common stock also
is in line for an initial payment.
Among the Western roads, the st.
Paul stands out conSpicuouSly for a
record that includes an increase in
operating income of over 100 per cent,
compared with 1927, which will permit
it this year to pay the full five per
cent interest on the adjustment bonds
and earn an amount for the preferred
stock that will give occasion for con-
Sidering dividends on this stock. The
Great Northern and Northern Pacific
are both entitled to higher dividends
from their 1923 results. In addition,
the Burlington, which they control, had
the largest earnings per share in several
years. The Chicago & Northwestern
also did well and has already indicated
more generous dividend attitude by
paying an extra on the common shares.
The Southern Pacific is another road
whose expansion in revenues last year
makes the question of an increase in
its dividend rate to per cent, after
having paid per cent for over 20
years, an active one.
Southern Roads.
Conditions in the South are still I'M
favorable, but less so than six months
ago. The report of the Southern Rail-
way today for the twelve months Show
ed decrease in net operating income
Of $2,500,000. No change in the pres
ent per cent dividend on the
common stock is probable. Atlantic
Coast Line has had 25 per cent drop
in gross earnings and one of 40 per
cent in net in the past two years, but
has been able to maintain dividends
of 10 per cent. More serious have
been the decreases on the Florida East
Coast. amounting to over SO per cent
in gross and over 70 per cent in net the
past two years. The Seaboard Air Line
in December showed a good come
back" but for the IL months a slight
loss compared with 1927. Both for the
Florida East Coast and the Seaboard