Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-18

The Norfolk & Western Railway
rapidly is completing two projects
which are likely to open new sources Of
revenue for the company before the end
of 1881, says the Wall Street Journal
The Norfolk 81 Western plans to
place in operation within three months
the line constructed by its Big Sandy
g. Cumberland Railroad Co., which
leaves the main line at Devon, w. Va,
and runs south into the coal area
around Grundy. Va. More than $8,-
000, 900 was spent for the construction
of the extension, which will give the
road entrance to an entirely new coal
region. The time required for the work
was about three years.
Before the end of 1881, the line being
constructed by the NJ Il WIS Guyandot
& Tug River Railroad Co. probably will
be completed and its operation taken
over by the N. & w. The project leaves
the main line at Wharnciiffe, w. va,
and runs northeast to Gilbert. The
Virginia Railway is constructing a
branch west from its main line at
ElmoTe to Gilbert, where it will connect
with the Norfolk & Western and Ches-
apeake e. Ohio. The Virglnans oranch
taps a rich new coal region, and a
heavy interchange of traffic between the
Virginian and both the Norfolk 81
Western and the Chesapeake e. Ohio
probably will take place at Gilbert.
The construction Of the N. q WIS
branch to Gilbert has required about
three years and represents an invest
ment OF approximately S2,500,000.
Jacobs Fork Extension Open.
Another project which should bring
increased traffic to the N. &, w. Is the
extension of its Jacobs Fork branch
, which was completed and placed in OPP
Grafton on April l last Shipments
from the new coal operation OF the
Pocahontas Fuel Co., now under con-
struction, will begin moving over the
extension about July 1.
The Norfolk & Western has bene-
flied from the prevailing low building
costs in its new construction and in
Improvements it has made to its present
system.
In 1880, a year In which the Norfolk
&c Westerns gross revenues dropped Is
per cent below those of the preceding
IL months, the company increased its
investment In road and equipment by
more than $19.000,0 900, compared with
net increase in 1929 of approximately
10000, 900. Those items include the
company's investment in and advances
to affiliated companies.
The company's outlay for capital &C.
count in 1880 was somewhat larger than
the surplus earnings for the year after
payment of dividends The surplus to-
tailed $14,019,277, compared with S23,-
992 1888 for 1929.
Depreciation Charges Increased.
The balance expended on capital i'm
provements above that represented by
earnings over dividend payments was
approximately offset by the company's
depreciation charges for 1880, which
totaled $4,918,863, against $4,718,308 in
1929.
The Norfolk & Western charges to
maintenance of way and maintenance
of equipment on account of deprecia-
ton are at an unusually high rate. II
is one of the few roads in the country
10 charge any depreciation on bridges
culvertS, stations, shops and the like
In 1880, the compahy's charges tc
maintenance Of way and structures or
account of depreciation totaled $540,.
463, compared with $556,440 in 1929
Depreciation charged to maintenance o.
equipment totaled $4,378, 400 in 1880
against 81, ISL 1868 in 1929.
The Norfolk g. Western has bull
impressive cash reserve in recent years
At the end of 1880, its balance shee
showed holdings of short-term railroad
state, county, municipal and industrial
obligations totaling $42,969, 1876, which