Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-18
NORFOLK g. WESTERN TO OPEN
TWO NEW BRANCHES THIS YEAR
Bond Holdings $42,969 796-Re6nancine
Not Believed Necessary on Account
of Strong Cash Position.

+ was q small reduction from the high
resched by that item at the end of
| 1929. when 1t totaled $40, 456, 68e.
The large bond holdings at the end
of 1880 were in addition to current
assets Of SIS, 136,583. which alone were
three times current liabilities Of $4,-
94o250. There also was outstanding
a $6,929,S57 tax liability, carried in the
balance sheet under unadjusted credits.
Reflnancing Apparently Unnecessary.
The small reduction in bond hold
ings during 1880 can be accounted for
by the retirement during that year of
$3,270,000 of equipment obligations,
bringing the total outstanding as Of
the end of the year to SIC. $4,000.
An issue Of $7,235 900 par value Of
Norfolk & Western 6 per cent general
mortgage bonds natures on May /.
this year: In view OF the company's
large holdings of short-term bonds.
totaling approximately six times the
par value of the maturing bond issue,
1t Is reasonable to presume that the
road will pay of the issue at maturity
out of its treasury funds.
Earnings in 1880 of the Norfolk &
Western reflected the general recession
in business throughout the country.
The decline in both gross revenues and
net operating income from the preced-
ing year, however, was less than that
for the country's class l railroads as a
whole. N & WIS gross revenues In
1880 totaled $100,530, 458, a drop Of
las per cent from 1929, compared
with drop of 1870 by all class rail-
roads. The NJ & WIS net operating
income for 1880 totaled $50, SAC, 858. a
decrease Of 239 per cent from 1929,
compared with q drop Of 800 per cent
shown by all roads.
The company's net income in 1880
was aided substantially by q rise in
incorporating tncome-mainly from
interest on northumberland a reduc-
ton in interest paid on bonds and equip
ment obligations. Incorporating in
come rose to new high record level
of 1920, 478, an increase of $543, 1885
above 1929, rejecting principally the
larger holdings Of short-term bonds
during 1890 than during the preceding
year. Interest paid by the company
in 1880 totaled $4.944,571, . decrease
OF $54,257, rejecting principally the
retirement OF equipment obligations
during the year.
Traffic Declines Sharply.
Net income of the company for 1890
after charges and allowing for preferred
dividend requirements was equivalent to
$2l.96 share on the ,406, 483 shares
of common stock outstanding, compared
with S29.05 a share in 1929.
Traffic on the Norfolk & Western in
the first two months this year suffered
sharp decline from that of the COR
responding period of last year. Gross
revenues fer the first two months Of
1881 totaled $12,894, 757, a decrease of
$50 per cent below 1880, compared with
drop shown by the country's Class /
railroads as a whole of about 20 per
cent. The Norfolk & Westerns net op-
Grating income in the first two months
this year totaled $1,000, 1903, a decrease
Of 46.7 per cent. compared with drop
Of about 40 per cent for all Glass /
roads. The March earnings, not yet re-
ported, are likely to make a more favor
able comparison with 1890 than did the
| first two months of this year
The Norfolk & Westerns equipment
condition is the best for any railroad
| in the country AS of March /, 1881
| only 0so of per cent of the company's
freight cars was undergoing or await
ing repairs, the lowest percentage Of any
railroad; while as Of the same date only
2.3 per cent of the company's locomo-
| tives was in shops or awaiting repairs,
which was the lowest percentage for
any railroad, with the exception Of two
much smaller carriers, the Gulf Coast
Lines GA per cent? and Fort Smith &
Western de per cent?.