4971 hA9fe THE CORNELL UNIVERSITY LIBRARY HG4971 j896" ""'™™'"' """""^ olin 3 1924 030 207 769 DATE DUE 'at^P^ %t •—^ |--- p_' V GAYLORD PRINTED IN U.S.A. Cornell University Library The original of tliis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030207769 THE Earning Power of Railroads • 1903 • WITH MR. MUNDY'S COMPLiIMENTS 1902 FLOYD W. MUNDY NEW YORK ' \- C> THE Earning Power of Railroads WITH Tables Showing Facts as to Earnings, Capitalization, Mileage, etc., of One Hundred Railroads in the United States and Canada ">"^^ FLOYD W. MUNDY_, With Granger Harwell & Company 1902 FLOYD W. MUNDY NEW YORK Copyright, 1902, BY FLOYD W. MUNDY PREFACE. The author issues "The Earning Power of Railroads" in the hope that it may prove of interest and be a helpful guide to investors. CONTENTS. PAGE. Introductory n Chapter I. Income Account 1 1 Chapter II. Operating Expenses 12 Chapter III. Maintenance Expenses , 14 Chapter IV. Maintenance of Way 16 Chapter V. Maintenance of Equipment 19 Chapter VI. Conducting Transportation and General Expenses 22 Chapter VII. The Operating Ratio 29 Chapter VIII. Fixed Charges 30 Chapter IX. Stock Outstanding in its Relation to Earning Power 35 Chapter X. Tables 39 Notes 142 INDEX TO RAILROADS. Light face figures refer to notes; heavy face figures to tables. PAGE Alabama Great Southern R. R 175, 113 Ann Arbor R. R 152, 63 Atchison Topeka & Santa F6 Ry 178, 120 Atlanta & West Point R. R 170, 102 Atlanta, Knoxville & Northern Ry 170, 103 Atlantic Coast Line R. R 170, 104 Baltimore & Ohio R. R 144, 49 Bangor & Aroostook R.R 142 , 42 Boston & Maine R, R 142, 43 Buffalo & Susquehanna R. R 145, 50 Buffalo, Rochester & Pittsburgh Ry 145, 51 Canadian Pacific Ry 190, 141 Central of Georgia Ry 171, j 05 Central Vermont Ry 143, 44 Chesapeake & Ohio Ry 171 , 106 Chicago & Alton Ry 153, 64 Chicago & Eastern Illinois R. R 153 , 65 Chicago & Northwestern Ry 154, 66 Chicago, Burlington & Quincy R. R 155, 67 Chicago Great Western Ry 156, 68 Chicago, Indianapolis & Louisville Ry 156, 69 Chicago, Milwaukee & St. Paul Ry 156, 70 Chicago, Rock Island & Pacific Ry 157, 71 Chicago, St. Paul, Minneapolis & Omaha Ry 157, 72 Chicago Terminal Transfer R. R 158, 73 Cincinnati & Muskingum Valley R. R 158, 74 Cincinnati, Hamilton & Dayton Ry 158, 75 Cincinnati, New Orleans & Texas Pacific Ry 175, 114 Cleveland & Marietta Ry 159, 76 Cleveland, Akron & Columbus Ry 159, 77 Cleveland, Cincinnati, Chicago & St Louis Ry 159, 78 Cleveland, Lorain & Wheeling Ry 160, 79 Colorado & Southern Ry 179, 121 Delaware, Lackawanna & Western R. R 146, 52 Denver & Rio Grande R. R 179, 122 Detroit & Mackinac Ry 160, 80 Erie R., R, ,,,,,,,,,,,,,,, , 146, 53 INDEX — Continued. PAGE Evansville & Terre Haute R. R i6o, 8i Fort Worth & Denver City. Ry i8o, 123 Georgia, Southern & Florida Ry 172, 107 Grand Rapids & Indiana Ry 161, 82 Great Northern Ry 185, 133 Hocking Valley Ry 161, 83 Illinois Central R. R 161, 84 Indiana, Illinois & Iowa R. R 162, 85 Iowa Central Ry 186, 134 Kanawha & Michigan Ry 163, 86 Kansas City Southern Ry 181, 124 Lake Erie & Western R. R 163, 87 Lake Shore & Michigan Southern Ry 163, 88 Long Island R. R 147, 54 Louisville & Nashville R. R 176, 115 Louisville, Henderson & St. Louis Ry 177, 116 Michigan Central Ry 164, 89 Minneapolis & St. Louis R. R 186, 135 Minneapolis, St. Paul & Saulte Ste. Marie Ry 187, 136 Missouri, Kansas & Texas Ry 181, 125 Missoiiri Pacific System 181, 126 Mobile & Ohio R. R 177, 117 Nashville, Chattanooga & St. Louis Ry 177, 118 New York Central & Hudson River R. R 148, 55 New York, Chicago & St. Louis Ry 165, 90 New York, New Haven & Hartford R. R 143, 45 New York, Ontario & Western R. R 149, 56 New York, Susquehanna & Western R. R 149, 57 Norfolk & Western Ry 172, 108 Northern Central Ry 149, 58 Northern Pacific Ry , 187 , 137 Pennsylvania R. R 150, 59 Peoria & Eastern Ry 165, 91 Pere Marquette R. R 166, 92 Philadelphia, Wilmington & Baltimore R, R 151, 60 Pittsburgh & Lake Erie R. R 152, 61 Pittsburgh, Cincinnati, Chicago & St. Louis Ry 166, 93 Portland & Rumford Falls Ry 143, 46 Richmond, Fredericksburg & Potomac R. R 173, 109 Rio Grande Southern R. R 182, 127 Rio Grande Western Ry 182, 128 Rutland R. R 144, 47 St. Joseph & Grand Island Ry 183, 29 St. Louis & San Francisco R. R. 183, 130 St. Louis Southwestern Ry 185, 131 Santa F6 Prescott & Phoenix Ry 189, 139 Somerset Ry . , , 48 8 INDEX — Continued. PAGE Southern Indiana Ry i68, 98 Southern Pacific System 189, 140 Southern Ry 173, no Terra Haute & Logansport Ry 167, 94 Texas & Pacific Ry 185, 132 Toledo & Ohio Central Ry 167, 95 Toledo, Peoria & Western Ry 167, 96 Toledo, St. Louis & Western Ry 167, 97 Union Pacific R. R 188, 138 Wabash R. R 168, 99 Western Ry. of Alabama 178, 119 West Jersey & Seashore R. R 152, 62 West Virginia Central & Pittsburgh Ry 174, in Wheeling & Lake Erie R. R 169, 100 Wisconsin Central Ry i6g, loi Wrightsville & Tennille R. R 174, 112 INTRODUCTORY. At the outset it must be stated that this primer treats alone and in the ■ most simple and tentative manner of the ea,rning power of railroads, and deals not at all with those features alike most essential to investors, the traffic resources and the financial and physical condition. As a rule, comparisons of the earning power of different roads can be made easily and intelligently owing to the, uniformity in this regard of the reports submitted by the railroad companies. While the balance sheets of railroads seldora are as complete and satisfying as they should be, yet indi- vidual investigation into the financial condition of any road can readily be made, and as a rule its strength or weakness financially ascertained. All too few details are given in the railroad reports of to-day as to the physical characteristics, the char- acter of rails and ballast, the number of grade crossings, the extent and nature of curvatures and gradients and number and character of bridges, culverts, etc., etc. Knowledge of all these, as well as of the character and density of traffic and of the general conditions attendant upon the obtaining and conduct of such traffic is essential to the complete understanding of the merits of railroad securities ; yet invaluable informa- tion bearing upon their relative merits can be acquired by comparison of the income accounts of the different roads. While the peculiar and varying conditions under which each individual road must of necessity lO INTRODUCTORY be operated impair comparisons, yet analysis points to certain undisputed conclusions and gives an index to the truth. There are few roads in existence of which it can be said that their "cost of road, structures and equip- ment" as exhibited in their financial statements does not include very large items, representing altogether fictitious values. This comes about through the charges, dating perhaps long ago, of excessive amounts for "discount on bonds," "reorganization expenses," and through the charges for construction of amounts which to-day would be considered fabulous. Per contra, taken in a strict sense, "bonds and stocks outstanding" represent to a considerable degree nothing save an equity in earning power. So it becomes of prime importance to ascertain the "earning power" of each railroad in order that through the comparison of the "earning power" of each with the other certain conclusions as to the respective merits of their bonds and stocks may be deduced. THE EARNING POWER OF RAILROADS. CHAPTER I. INCOME ACCOUNT. The income account, or statement of the earnings and expenses for a fiscal period, is usually given as follows : Gross Earnings . $10,000,000 Operating Expenses 6,000,000 Net Earnings $4,000,000 Miscellaneous Earnings 200,000 Total Net Income- $4,200,000 Fixed charges: Interest $1,500,000 Rentals 100,000 Taxes 375,000 Sinking Fund, Exchange, etc 25,000 Total Charges $2,000,000 Surplus $2,200,000 Dividends 1,000,000 Balance 1,200,000 To any one at all familiar with railroad reports each of the above items is self-explanatory. In ascertaining the earning power or the ability of a road to pay interest and dividends, the most important item of the income account to be considered is the Operating Expenses. 12 THE EARNING POWER CHAPTER II. OPERATING EXPENSES. The operating expenses of almost all the railroads in the United States are classified according to rules prescribed by the Interstate Commerce Commission. These classifications are all embodied under four prominent heads as follows: Maintenance of Way and Structures. Maintenance of Equipment. 3. Conducting Transportation. 4. General Expenses. 1. Under Maintenance of Way and Structures fall expenses for the repairs and renewals of machinery and tools, for repairs of roadway and track, for ballast- ing, for repairs and renewals of switches, frogs, ties, fences, bridges, culverts, stations, shops, buildings, etc. 2. Under Maintenance of Equipment fall expenses for the repairs and renewals of locomotives, passenger cars, freight and other cars and of steamboats and for the maintenance of shop machinery, etc. 3. Under Conducting Transportation fall wages of agents, clerks, yardmen, flagmen, watchmen, engine- men and trainmen, expenses for telegraph and station service, cost of fuel and supplies for locomotives, expenses for water supply, agencies, car mileage, etc. 4. Under General Expenses fall salaries of gen- eral officers and office clerks, expenses for legal service, insurance, etc. It appears at once from the nature of the expenses OP RAILROADS. I 3 which fall under these heads that the extent of the expenditures under i and 2 is to a considerable degree within the discretion of, and, other things being equal, reflects the conservatism or lack of conservatism in the road's management. On the other hand, under 3 and 4 fall expenditures which are wholly obligatory in that while they fluctuate each year with the volume of business, train mileage, etc., they are outlays which are altogether incident to the present conduct of the road's traffic. These subdivisions of the operating expenses may then be divided into two classes: A. Maintenance Expenses. B. Conducting Transportation and General Ex- penses. 14 THE EARNING POWER CHAPTER III. A. MAINTENANCE EXPENSES. There are many railroads in the United States where the maintenance outlays have been and are clearly inadequate. There are many more examples where maintenance has been heavily surcharged each year. Too often investors are deceived by the general state- ment in the annual report that "the management is gratified to be able to say to the shareholders that the close of the fiscal year finds the property of the com- pany in as good condition as it was last year." This is not sufficient. Keen competition and the teaching of the numerous reorganizations have forced upon the managers the necessity of charging to expenses items which were formerly charged, and often might prop- erly be charged, to capital account. So the manage- ment should be able to say, in lieu of the above, that the improvement work has so progressed during the fiscal period as to keep the property in all respects abreast of its competitors. There are few roads in the United States which cannot, with earnings as they have averaged in the past three or four years, fully maintain their property and pay their fixed charges. There are many which cannot do this and, in addition, pay dividends. Analysis of the yearly expenses for Maintenance of Way and for Maintenance of Equipment will show distinctly whether or not a road is becoming more liberal in that regard. OF RAILROADS. 15 Comparison of the maintenance expenses of different roads operating under like conditions will tend to establish the relative policy pursued by each. l6 THE EARNING POWER CHAPTER IV. MAINTENANCE OF WAY. Taken, two roads in good condition, traversing the same territory and meeting with like conditions of traffic, etc., a cursory study into their maintenance will establish which of the two is following the more conservative policy. The best standard to be fol- lowed by the average student of railroad reports is to reduce the Maintenance of Way expenses to a "per mile" basis. Take the total expenses under this head, and divide it by the average number of miles operated for the period under review. A certain amount must be appropriated each year for the maintenance of the roadway and structures, whether the business of the road is large or small. While these expenses must of necessity vary somewhat with the density of the traffic, yet it by no means follows that a road with a density of i, 000,000 ton miles per mile of road should spend for Maintenance of Way ten times as much as another road which has a density of but 100,000 ton miles per mile of road. So it cannot be said that a road whose gross earnings per mile are $10,000 should spend ten time? as much for Maintenance of Way as a road which earns but $1,000 per mile. It follows that one road may appropiiate 25 per cent, of its gross for a given period for Maintenance of Way, and yet not spend so much relatively as the road which so appropriates but 10 per cent, of its gross. Neither the density of the traffic nor the extent of gross earnings determines the fair requirement for OP RAILROADS. 1 7 Maintenance of Way. Conditions peculiar to each road will mar the comparison between the amounts per mile expended by different roads. One road has a regular profile, as the Northern Pacific; another traverses a mountainous country, as the Atchison; another obtains its ballast from its own gravel pits conveniently located; another its ties with advantage; yet another has many and expensive bridges and tunnels to maintain, etc., etc. One road may expend but $800 per mile for Maintenance of Way, and )'et better maintain the standard of its property than another road which expends an average of $ 1,000 per mile. Some roads have branch lines where it would be wasteful under existing conditions of traffic to expend more than $500 per mile. The small expen- ditures on these branch lines would reduce considerably the average outlay for the system, yet it would not follow that this relatively small average outlay was working to the disadvantage of this system with ref- erence to competitive business. Obviously the road with a considerable mileage of second and third tracks should require a larger expen- diture "per mile of road" for Maintenance of Way than a road with little or no additional main tracks. Where the roads to be compared have double tracks, com- parison should be made of the Maintenance of Way "per mile of single main track," although it should be borne in mind that it costs more under like con- ditions to maintain two miles of single track than one mile of double track. Another modification arises from the fact that the nature and extent of the business of certain roads necessitate the maintenance l8 THE EARNING POWER of a relatively large percentage of side and passing tracks. It is safe to say that when a railroad's Maintenance of Way expenses average below $800 per mile of road these expenses should receive careful scrutiny by the intending investor. It is commonly said that under present conditions an average of $goo per mile on Southern and Western roads represents ample main- tenance. This, it is believed, is the fact. Perhaps $1,200 or $1,300 per mile of single main track is suffi- cient for average requirements on the Trunk lines. OF RAILROADS. I9 CHAPTER V. MAINTENANCE OF EQUIPMENT. Comparison of the Maintenance of Equipment expenses "per mile of road" avails little. The best basis for testing the sufficiency of these is to ascertain the average amount expended on equipment per unit of service rendered by the equipment; that is, the average .outlay per locomotive per mile run, per freight car per mile run, and per passenger car per mile run. "Maintenance of Equipment" depends not alone upon the amount of equipment to be maintained, but also upon the service rendered by the equipment. It stands to reason that the Erie Railroad, for example, with a freight density, as of last year, of 2,314,277 ton miles and a passenger density of 217,843 passenger miles per mile of road, must expend more "per mile of' road" for Maintenance of Equipment than the Atchison, with a freight density, as of last year, of 496,579 ton miles and a passenger density of 65,843 passenger miles per mile of road. The relatively larger volume of business done or work performed by the Erie requires a relatively larger amount of equip- ment and a greater service to be rendered by its equip- ment. It will be found that Maintenance of Equipment expenses have usually a direct relation to the road's freight and passenger density, this relatiot. being affected to a considerable degree by train and car loading and other essential factors. An example v/ill tend to establish that equipment maintenance has necessarily no relation to gross earnings. Suppose the 20 THE EARNING POWER tonnage of one road consists altogether of low class freight, as coal or iron ores, and the tonnage of another road wholly of high class freight. Each road earns $20,000 per mile. The density of the first road's tonnage and, as a consequence, the service rendered by its equipment, must be far greater than that of the second road. The business of the one road might be successfully conducted with one-third the equipment and power required by the other. Ergo, an outlay of $2,000 per mile for equi^^ment maintenance on the road with the low class tonnage might be no greater relatively than $1,000 per mile on the other road. Experience has shown that about 5?^ to 6}4 cents per locomotive per mile run, 5 to 7 mills per freight car per mile run and i}( cents per passenger car per mile run represent liberal average annual outlays for equip- ment maintenance. This means that an average of $1,600 to $1,800 per annun^ per locomotive, $45 to $55 per annum per freight car, and $550 per annum per passenger car exceed normal maintenance require- ments. All this depends much upon the character of equipment required in the service. It usually costs less, for example, to purchase and maintain coal cars and flat cars than box cars and refrigerator cars. No argument is necessary to show that it rnust cost more per unit to maintain a .small equipment than a large one. Among other important considerations which bear upon the cost of maintaining a road's locomotives and cars may be mentioned the location and equipment of its shops. There are many roads where, although maintenance, OF RAILROADS. 21 both for roadway and equipment, is clearly surcharged, the extent of the excess of maintenance over normal requirements cannot be taken as present earning power. Take again, for example, the Erie or Atchison as distinct from the Pennsylvania or New York, New Haven & Hartford. While the Pennsylvania and New York, New Haven & Hartford do not report a surplus much in excess of present dividends, yet the dividends appear secure for the reason that should there come a bad year there is and for years has been abundant opportunity for curtailment in maintenance expenses. After reorganization, the properties of the Erie and Atchison were turned over to the new man- agers in a deplorable physical condition. Here the needs were so unusual as to make imperative extraordinary charges to operating expenses for main- tenance. The excess of these expenses over normal requirements could be considered only as offering opportunity for future retrenchment. It could in no way be taken as an immediate margin of safety. 2J THE EARNING POWER CHAPTER VI. B. CONDUCTING TRANSPORTATION AND GENERAL EXPENSES. As previously suggested, under these sub-divisions of the Operating expenses fall those expenses which, as distinct from Maintenance of Way and Maintenance of Equipment, must be taken as wholly in the nature of a fixed or obligatory charge. They relate and are incident to the immediate conduct of the road's business, and, like those commonly called "fixed charges." interest, taxes and rentals, their payment cannot be long delayed. If a road is hard pressed, means may be found whereby the payment of a portion of these expenses can be postponed, but only for a short time. In the discussion as to maintenance expenses it was made clear that those expenses are under necessity or in the discretion of the management capable of retrench- ment. It will be found that the amount per mile of the Conducting Transportation expenses has a general relation to the traffic density. This results from the fact that these expenses depend largely upon the train mileage; engine mileage also is an important factor. As density increases, other things, as train-load and car-load, being equal, the train mileage increases. To the average investor the essential thing to consider is the percentage of gross earnings required for Con- ducting Transportation and General expenses. Where this and the percentage of gross required for fixed charges is given, it is seen what remains for mainte- OF RAILROADS. 23 nance and dividends. The questions of train and engine mileage, train and car loading, ton and train mile cost and earnings, etc., are of extreme interest and should be carefully dealt with. These will be passed over here in favor of the more vital considera- tion which reflects all these — the bearing of operating expenses (other than maintenance) upon gross earn- ings. It is believed that it is not far from the truth to say that for all the railroads in the United States these expenses did not require for the year 1 900-1 more than 38 per cent of the total gross earnings. General expenses have no such relation to traffic density as have the Conducting Transportation ex- penses. They tend to constancy, and vary but little with the amount of business done. These General expenses are often relatively greater on a small than on a large road. As General expenses make up but a small part of the operating expenses, and as they partake of the nature of Conducting Transportation, as distinct from Maintenance expenses, it is right here to class them with the Conducting Transportation expenses. Where, in the comparison of two roads with like character of business, it is found that these expenses of one reqtiire a relatively larger percentage of gross than in the case of the other, it means one or both of two things: either that with relatively like rates for the work performed the one road is not conducting its business with the same degree of economy as the other, or that, with like relative economy in the con- duct of its business, the rates received by it for work performed are relatively smaller. In the use here of 24 THE EARNING POWER the word "economy" it is understood that the measure of economy is net results. To show the significance of this percentage to the investor, take, for example, the Chicago Great Western and the Chicago, Milwaukee & St. Paul. The character of the tonnage of these two roads is very similar. For the year ending June 30, 190T, Conducting Transportation and General ex- penses consumed 46.2 per cent, of Great Western's gross earnings against 34.5 per cent, for St. Paul. These expenses have required about the same per- centage of Great Western's gross earnings each year for the last six years, and their ratio to gross earnings has shown no tendency to become less, while the percentage for St. Paul has shown a decline with almost every year during this period. When it is recollected that these expenses partake of the nature of a fixed charge upon gross, the full significance is apparent. The gross earnings per mile last year were about the same for each road. Suppose the annual interest, taxes and rentals required 20 per cent, of the gross for 1900-1 for both Great Western and St. Paul. Of Great Western's gross, then, 66.2 per cent, would have been consumed by these " fixed" charges, leaving 33.8 per cent, formain- tenance and dividends. Of St. Paul's gross but 54.5 per cent, would have been consumed by "fixed" charges, and 45.5 per cent, would have been left for mainte- nance and dividends. It is clear that the margin of safety for dividends would have _ been far- greater for St. Paul than for Great Western. The actual margin of safety for Great Western was really less than as given above, because interest, taxes and rentals required 22 per cent, of last year's gross against 18 per cent, for St, Paul. OF RAILROADS. 25 Wbile the larger percentage of gross required for the Conducting Transportation and General expenses in the case of one road reflects what has been called "relatively less economy" in operation, yet this by no means implies a relative lack of efficiency in the management. A railroad might be operated with the highest degree of efficiency, yet the average rates received, and consequently the gross earnings, might be so small as to make these expenses bear a very high ratio to the gross. When rates, train-load, etc., tend to constancy, the ratio of Conducting Transportation expenses vary inversely with gross earnings. It is shown in what follows that the margin for maintenance and dividends may be greater on the road with large gross earnings per mile, where Con- ducting Transportation and General expenses require, say, 42 per cent, of the gross, than on the road with small gross earnings per mile, where Conducting Trans- portation and General expenses require but 35 per cent, of the gross. For the first road 20 per cent, of the gross might be ample for maintenance, while 35 per cent, of its gross might be an insufficient allow- ance for the second road. The fact remains after all that, other things being equal, where these expenses are relatively larger, the margin of safety is relatively less. 26 THE EARNING POWER CHAPTER VII. THE OPERATING RATIO. What has gone before leads naturally to the dis- cussion of the Operating Ratio in its bearing upon this question of Earning Power. It is with great difficulty that many investors are dissuaded from the belief that the Operating Ratio counts for all. Where a road is reported as operating at 50 per cent, it is not uncommon to hear it said that "it cannot be done." Another road reports operating at 75 per cent., and it is said that because of this high Operating Ratio there is manifestly "abundant opportunity for retrenchment in expenses." It may be stated at once that the Operating Ratio, or the ratio which operat- ing expenses bear to gross earnings, has of itself no significance whatever. A few examples will tend to establish this fact. The gross earnings and operating expenses of roads A, B, C, D and E may be taken as given in the table on page 27. For the sake of argument, it is assumed that it requires for normal maintenance of road and equipment no more "per mile of road" for one of these roads than for another. o o «1 o o o p. s ... *o Oi m H o o .J o o o c o -< o o o o o ^ s 6S s ° lO o to ^ " 6? SS ^ 6? ^ Si feS s? 6? O nl 01'^ - c o ^< Is"" u CO CO rt ^ 6 s grt o, ■ g H c c g Oot5 W^; o CO- j3 5 B O B a - QJ 0) a: O O Bi Enrt g s Pi M H 28 THE EARNING POWER It is clear that road "A" operating at 55 per cent, makes more liberal outlay for maintenance than roads "B," "C" or "D," which operate at 60 per cent., 65 per cent, and 75 per cent., respectively. Consequently road "A" has greater room for curtailment in its main- tenance. Road "A" includes in its operating ex- penses sums in excess of normal requirements for maintenance, road " B " spends enough for mainte- nance, while "C" and "D" fall considerably below the average requirements. The $1,500,000, or 15 per cent, of its gross, expended by road "D" for Mainte- nance of Way on its 5,000 mile road is by far a rela- tively smaller outlay than that of road "A," where $1,250,000, or but 12^ per cent, of its gross, is so expended on 1,000 miles of road. Now, take road " E." It is seen that while Conducting Transportation and General expenses require the same per cent, of gross earnings, "E," operating at 50 per cent., spends for maintenance 140 per cent, more than "A," which is operated at 55 per cent. The table explains itself. It is unnecessary to give more examples (many more might be given) to show that the Operating Ratio of itself is of no significance. Wherever it may have significance it will be found to be wholly the result of accident. Were it not for the diverse conditions which affect peculiarly the question of maintenance in each indi- vidual road, it might be possible to arrive at certain definite rules as to the percentage of gross required for maintenance of different classes of railroads. One rule would suggest itself: that for average mainte- nance requirement on Southern and Western rgads OF RAILROADS. 29 where gross earnings amount to, say, $6,500 per mile, an annual appropriation of 25 per cent, of the gross would under present conditions be ample. Another rule might be found to apply to such roads as the Boston & Albany, the New York, New Haven & Hartford, etc., to the effect that where gross earnings exceed $20,000 per mile an appropriation of 18 per cent, to 20 per cent. of gross would be more than sufficient for average maintenance requirements. The mere statement of any "rule" must of necessity be clothed with so many exceptions and modifications as to make one lose sight of the rule itself. 30 THE EAR^fING POWEft CHAPTER VIII. FIXED CHARGES. Under Fixed Charges fall interest on the funded and floating debt, rentals of leased lines, etc., taxes and, in some cases, sinking-fund payments. The investor should examine the annual report carefully to ascertain whether or not the full interest on all the bonds outstanding at the close of the fiscal period has been charged in the Income Account for the period under review. Another important suggestion which may be made here is that the investor look to ascertain what opportunity there may be attaching to this or that road for future saving in interest charges through refunding. The Chicago, Rock Island & Pacific, for example, has little opportunity for future refunding. The Chicago, Burlington & Quincy, the Chicago & Northwestern, and the Chicago, Milwaukee & St. Paul will each save through the refunding in the next ten years of high rate interest bearing bonds at least |i, 000,000 per annum in interest charges. Very few roads are required to-day to set aside each year from earnings specific amounts for sinking fund purposes. The Chicago, Burlington & Quincy's annual appropriation for sinking funds is, it is believed, rela- tively larger than that of any other railroad in this country. For the year ending June 30, 1901, these sinking-fund payments, including interest on bonds held alive in the sinking funds, amounted to about $1,000,000. As such appropriations are in their nature extraordinary, and are used for the retirement of OF RAILROADS 31 obligations of the company, they must be given due weight in the comparison of the respective earning power of different roads. As there is of itself little significance in the com- parison of the average train loads or average train miles, and as there is of itself no significance in the comparison of the Operating Ratio of different roads, so, from the investor's standpoint, there is necessarily no significance to be attached to the fact that one road has a bonded debt of $30,000 per mile, while the bonds outstanding on another road amount to but $15,000 per mile. Likewise, the fact alone that the fixed charges of one road amount to $2,000 per mile of road against $1,000 per mile on another shows b}' no means that the bonds of the latter are more secure. (Compare Cleveland, Lorain & Wheeling, page 79, and Rio Grande Southern, page 127.) The essential consideration here, as in the case of those quasi-fixed charges. Conducting Transportation and General ex- penses, is the ratio which these charges bear to gross earnings and the ability of the road to pay these charges. It stands to reason that the New York Central & Hudson River Railroad could, with $20,000 per mile gross earnings, more easily provide for the interest on bonds aggregating $60,000 per mile than could the Atchison with $7,000 per mile gross provide for the interest on a bonded debt of $30,000 per mile. It demands no proof to show that fixed charges of $600 per mile on one road might be a heavier burden on earnings than fixed charges of $1,000 per mile on another, although in each case the percentage of gross required for these charges is but 20 per cent. Take 32 THE EARNING POWER as gross earnings for the first road $3,000 per mile, and for the second $5,000 per mile. Let Conducting Transportation and General expenses require 35 per cent, of the gross for each road. Here is 55 per cent, of gross consumed by "fixed" charges in each case. The one road has 45 per cent, of $3,000 per mile, or ,$1,350 per mile for maintenance and surplus; the other has 45 per cent, of $5,000 per mile, or $2,250 per mile remaining for maintenance and surplus. As a rule, where, on the present basis of earnings, the fixed charges of any given road require less than 22 per cent, of gross income, and where the surplus after the paj'ment of all operating expenses (including liberal outlays for maintenance) amounts to about 20 per cent, of the gross income, the interest on the road's bonds may iDe considered absolutely secure. It should be noted that this is not the sanrie as saying that the interest is secure where the fixed charges require but 50 per cent, or less of the net income, for the reason that operating expenses (including proper outlay for maintenance) might in one case require 90 per cent, of the gross income against 60 per cent, in another case. The fixed charges in the first case might require but 50 per cent, of the net, or 5 per cent, of the gross, income; in the second case, they might require, likewise, 50 per cent, of the net, or 20 per cent, of the gross, income. Should the gross ineome show a proportional decrease of, say, 15 per cent, for each road, other things being equal, one road would show a deficit after fixed charges, while the other road would show a surplus. (Compare Cleveland & Marietta, page 76, and Illinois Central, page 84.) OF RAILROADS. 33 The percentage of fixed charges varies in an inverse ratio with gross earnings. TABLE X. A. B. Miles Operated ... . 1,000 1,000 Gross Earnings. .. .$10,000,000 $10,000 $10,000,000 i Operating Expenses 6,000,000 6,000 6,000,000 Net Earnings 4,000,000 4,000 4,000,000 Fixed Charges 2,000,000 2,000 3,000,000 Ratio Annual Charges to Gross 20 per cent. 30 per cent. Surplus 2,000,000 2,000 1,000,000 110,000 6,000 4,000 3,000 OPERATING EXPENSES. Maintenance of Way. .$1,250,000 $1,250 Maintenance of Equip. . . 1,250,000 1,250 Ratio of Maintenance to Gross 25 per cent. Conducting Transpor- tation 3,000,000 3,000 General Expenses 500,000 500 Ratio of Conducting Transportation and General Expenses to Gross 35 per cent. $1,250,000 $1,250 1,250,000 1,250 25 per cent. 3,000,000 500,000 35 per cent. 3,000 500 In the above comparison of the Income Accounts of roads "A" and "B" the operating expenses are in every respect similar. The fixed charges of road "A" require 20 per cent, of the gross and of road "B" 30 per cent, of the gross. The surplus of "A" amounts to $2,000,000, and that of "B" to $1,000,000. Assume that gross earnings decrease 25 per cent., and that roads "A" and "B" are operated as before at 60 per cent. The Income Accounts would appear somewhat as follows: 34 THE EARNING POWER TABLE ^. A. Miles Operated i,ooo Gross Earnings $7,500,000 $7,500 Operating Expenses. . . . 4,500,000 4,500 Net Earnings 3,000,000 3,000 Fixed Charges 2,000,000 2,000 Ratio Annual Charges to Gross 26.6 per cent. Siirplus , 1,000,000 1,000 B. 1,000 $7,500,000 $7,500 4,500,000 4,500 3,000,000 3,000 3,000,000 3,000 40 per cent. 0,000,000 0,000 OPERATING EXPENSES. Maintenance of Way. . . $950,000 $950 " of Equipment. 700,000 700 Ratio of Maintenance to Gross 22 per cent. Conducting Transporta- tion 2,350,000 2,350 General Expenses 500,000 500 Ratio of Conducting Transportation and General Expense.s to Gross 38 per cent. $950,000 700,000 22 per cent. 2,350,000 500,000 $950 700 2,350 500 38 per cent. Here Maintenance expenses are curtailed ; Conducting Transportation expenses, while requiring a greater percentage of gross, are smaller, due to less business handled; and General expenses remain the same. The fixed charges remain the same, and they require 26.6 per cent, of road "A's'' gross and 40 per cent, of road "B's" gross. The percentage of gross required for "B's" fixed charges is 10 per cent, greater than in the example given first above, while the percentage required for "A's'' fixed charges is but 6.6 per cent, greater than they were before the earnings decreased. Road "A" shows |i, 000,000 surplus, while "B's" surplus is entirely wiped out. OP RAILROADS. 35 CHAPTER IX. STOCK OUTSTANDING IN ITS RELATION TO EARNING POWER. What has gone before shows that a railroad's earning power cannot be measured by the surplus alone. Anal- ysis of the maintenance expenses indicates the integrity of the net earnings, and consequently the integrity of the surplus. Where raaintenance is found to be insufficient the investor knows that earnings must be drawn upon to a greater extent, and that if the gross is not large enough to allow of a greater appropriation, future increases in earnings must be used so far as they may be to bring the maintenance outlay up to fair re- quirements. Where maintenance is found to be ample or to exceed normal requirements the investor knows that future increases in earnings may rightly be reflected in a larger surplus. A comparison of the results of the Missouri, Kansas & Texas Railway and of the St. Louis Southwestern Railway is instructive as illustrating this point. The maintenance expenses of the former road for years prior to 1 900-1 were far below normal requirements, while the St. Louis Southwestern has for years charged its expenses very fairly. Owing to its large annual fixed charges, the Missouri, Kansas & Texas found it impossible to appropriate a greater percentage of its gross for maintenance. For the year 1 900-1 both the Missouri, Kansas & Texas and the St. Louis South- western showed phenomenal increase in earnings. The greater part of this increase of the Missouri, . Kansas 36 THE EARNING POWER & Texas was diverted to the maintenance accounts, while the increase in the earnings of the St. Louis Southwestern was for the most part represented in the net earnings. It has been demonstrated also in the foregoing chapters that where Conducting Transportation and General expenses or fixed charges are a relatively heavy burden on gross earnings, the margin of safety represented in the surplus is relatively small. For exactly those reasons that make greater or less the margin of safety represented in a road's surplus, it follows that the margin of safety for dividends for one road which earns 10 per cent, on its capital stock is necessarily by no means so great as that for another road which also earns 10 per cent, on its stock. The capital stock of road "A," the Income Account of which was given on page ^^ (Table i), is, let us say, $20,000,000, and that of "B" |io,ooo,ooo. While each road earned 10 per cent, on its stock, yet it is shown in Table 2, page 34, that with like decreases in gross earnings "A" earned 5 per cent, on its stock and "B " earned nothing at all. So the amount earned on the stock of one road might equal 15 per cent., and yet the margin of safety might not be so great as in the case of another road where but 10 per cent, was earned. An earning power of 10 per cent, on Minneapolis, St. Paul & Sault Ste. Marie preferred stock, or an earning power of 10 per cent, on Mobile & Ohio stock, or on Evansville & Terra Haute preferred, means far less as to the margin of safety for dividends than does an earning power of 10 per cent, on either Chicago, Rock OF RAILROADS. 37 Island & Pacific, Chicago, Burlington & Quincy or Louisville & Nashville stock. In any compaiison of the earning power of two roads it is important to note, in connection with other essential facts, what percentage of the gross earnings is required to pay i per cent, on the stock of each. The capital stock of the New York, Ontario & Western, which operates 480 miles of road, is about as large as that of the Chesapeake & Ohio, which operates 1,500 miles of road. The gross earnings of each road were about $10,000 per mile for the year ending June 30, 1901. Inasmuch as the total gross earnings of the New York, Ontario & Western for that year did not equal 10 per cent, on its capital stock, it must be a long time before the earning power of the road will warrant much higher prices for its stock. That the rate of dividends paid on a road's stock does not determine the value of that stock is evidenced as well by the market value of such stocks as " Lake Shore," " New York Central " or " Pennsylvania" as by the market value of such a stock as St. Joseph & Grand Island preferred. The value of a stock is usually determined by the earning power or the ability of the road to pay dividends. This earning power is deter- mined not only by the margin of safety represented in the surplus, but also by the stability or lack of stability of the gross earnings. The character of the tonnage and the natural resources and development of the territory traversed are to be considered in their bearing upon the stability of the road's traffic. Certainly the earnings for any one year cannot be 38 THE EARNING POWER taken as demonstrating a road's ability to pay its interest or to pay dividends The investor must con- sider the course of earnings for a series of years, as well as the prospects for the future. Finally, it must be said (as has been suggested in what has gone before) that absolute knowledge concerning the value of railroad securities can be gained only by a careful and personal examination of the physical condition of each property, as well as of the traffic relations and advantages and the conditions attaching to the same. In this way knowledge can be gained as to the opportunities presented in each case, both for the better handling of business already secured and for the securing of new business, OP RAILROADS. 39 CHAPTER X. TABLES. Following there are given tables, showing, so far as it is possible, for one hundred railroads in the United States and Canada: 1. The Average Mileage Operated, the Gross Earnings and the Surplus for a series of years. Where the road has been reorganized, the figures given are, excepting where stated to the contrary, those of the reorganized property. Wherever an appropriation of an extraordinary nattu-e (for equipment, betterments and additions) has been deducted from the net earnings as reported by any road, such an appropriation is considered as having been deducted from the surplus earnings. All interest paid on Income Bonds and all dividends paid on stock are also considered as having been appro- priated from the surplus earnings. 2. The total Capital Stock and Bonds out- standing and' the Stock and Bonds "per mile of road- operated." Under Capital Stock are included all Income Bonds outstanding. So far as it is possible, there is given under Capital Stock the amount outstanding as of January i, 1902. Under Bonds there is given, with but" few excep- tions, the amount of bonds outstanding at the close of the last fiscal year for which an official report has been issued. Bonds outstanding include in most 40 THE EARNING POWER cases bonds held alive in Sinking Funds and bonds held among Treasury Assets. The Bonds and Capital Stock are given " per mile of road operated," as it is believed that general comparisons can be made more readily on that basis than is possible where tJie capitalization is reduced to a basis "per mile of road owned." 3. The Income Account for the last fiscal year for which an official report has been issued. Included in Miscellaneous Receipts are all dividends on stocks owned, interest on bonds owned, rentals received, profits of water lines and, except where stated to the contrary, profits of coal companies. Under Fixed Charges are included interest on funded and floating debt, rentals, taxes, sinking-fund payments, etc. The amounts paid for rentals and included in Fixed Chai-ges are stated, as are the amounts paid on account of sinking funds. 4. The Operating Expenses are stated, subdivided as follows: (a) Maintenance of Way; (b) Maintenance of Equipment; (c) Conducting Transportation, and (d) General Expenses. As in the table showing the earn- ings and disbursements, these expenses are given reduced to a "per mile" basis. The ratio which the operating expenses bear to the gross earnings for the year given is also stated. 5. The proportion of the Gross Income represented in (a) Maintenance Expenses, (h) Conducting Trans- portation and General Expenses, (c) Fixed Charges and (d) Surplus. 6. The "ton miles per mile of road " and the " passen- ger miles per mile of road," In arriving at these OF RAILROADS. 41 figures, an effort has been made to disregard the tons of company's freight carried one mile. 7. The miles of second and additional main tracks, and the miles of yards and sidings. In conclusion it may be said that an earnest effort has been made in the compilation of the following tables to arrange the same so that trustworthy com- parisons can be made respecting the earning power of the different roads. 42 THE EARNING "POWER BANGOR & AROOSTOOK R. B. AVER. MILES YEAH OPEBATED GROSS EARNINGS SUHPLUS 1895-6 284 $699,662 $27,197 1896-7 306 764,781 18,957 1897-8 313 774,207 31,982 1898-9 321 929,264 48,867 1899-0 364 1,230,423 132,141 1900-1 370 1,449,454 129,608 STOCK OUTSTANDING June 30, 1901. Common $1,050,000 Preferred (5%) 1,248,884 BONDS OUTSTANDING June 30, 1901. Fixed Interest $6,410,000 Equipment 1,190,000 CAPITALIZATION . PER MILE $6,213 20,540 26,753 Stock $2,298,884 Bonds 7,600,000 Total ■ 9,898,884 The Bangor & Aroostook paid an 1900-1 $23,001 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 370. TOTAL Gross Earnings $1,449,454 Operating Expenses 908,422 Net Earnings 541,032 Fixed Charges 411,424 Surplus 129,608 OPERATING EXPENSES. TOTAL Maintenance of Waj; $285,379 Maintenance of Equipment 98,530 Conducting Transportation 455,873 General Expenses 68,640 Ratio of operating expenses to gross earnings, 62.7 per cent. PER MILE $3,908 2,453 1,455 1,111 344 PER MILE $771 266 1,232 185 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses.. .26.5% 25.2% 24.4% 22.5% 23.8% For Conducting Transpoitation and General Expenses 36.3% 35.1% 37.1% 35.3% 37.1% For Fixed Charges 28.4% 28.9% 33.1% 37.7% 36.3% ForSurplus 8.8% 10.8% 5.4% 4.5% 2.8% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 201,272 Passenger miles per mile of road 39,077 Miles yards and sidings 60 See page 142, OP RAILROADS. 43 BOSTON & MAINE R. R. AVER. MILES TEAB OPERATED GROSS EARNINGS SURPLUS 1896-6 1,717 820,460,091 Jl, 305,468 1896-7 1,718 19,556,687 1,269,296 1897-8 1,715 19,742,945 1,263,422 1898-9 1,715 19,890,607 1,279,415 1899-0 1.752 22,148,602 1,687,321 1900-1 2,257 30,406,907 1,690,413 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 823,367,171 Fixed Interest $29,389,715 Preferred (6%) ' 3,149,800 Per mile of road operated . . . 11,748 The Boston & Maine paid in 1900-1 $5,199,234 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 2,257. TOTAL PER MILE Gross Earnings $30,406,907 S13,472 Operating Expenses 21,518,785 9,534 Net Earnings 8,888, 122 3,938 Miscellaneous Receipts 968,713 429 Total Net Income 9,866,835 4,367 Fixed Charges 8,166,422 3,618 Surplus 1,690,413 749 OPERATING EXPENSES (ESTIMATED). TOTAL PER MILE Maintenance of Way $3,414,718 $1,613 Maintenance of Equipment 3,276,541 1,438 Conducting Transportation 14,108,067 6,250 General Expenses 719,469 318 Ratio of operating expenses to gross earnings, 70.8 per cent. Fixed charges above include $151,285 payments account Sinking Fund. APPROPRIATION OF GROSS INCOME (ESTIMATED). 1900-1 1899-0 1898-9 For Maintenance Expenses 21.2% 21.6% 21.0% For Conducting Transportation and General Expenses 47.2% 46.6% 45.7% For Fixed Charges 26.0% 24.3% 27.0% ForSurplus 6.6% 7.6% 6.3% 100.0% 100.0% 100.0% 1897-8 22 .7% 44 26 6 .0% 100.0% TEAR 1900-1. Ton miles per mile of road 686,006 Passenger miles per mile of road 280,228 Miles second and additional main track 512 Miles yards and sidings , . . , 1.187 See page 142. 44 THE EARNING POWER CENTRAL VERMONT KY. YEAR 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED GROSS EARNINGS SURPLUS 611 511 511 513 83,217,518 3,151,719 3,382,724 3,262,134 $305,309 336,103 128,851 2,804 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902 June 30, 1901. Common $3,000,000 Fixed Interest $11,000,000 CAPITALIZATION . TOTAL PER MILE Stock $3,000,000 $5,847 Bonds 11,000,000 21,442 Total 14,000,000 27,289 The Central Vermont paid in 1900-1 $223,692 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 513. TOTAL Gross Earnings $3,262, 134 Operating Expenses 2,495, 134 Net Earnings 767,000 Miscellaneous Receipts 10,400 Total Net Income 777,400 Fixed Charges 774,596 Surplus 2,804 OPERATING EXPENSES. TOTAL Maintenance of Way $512,722 Maintenance of Equipment 253,598 Conducting Transportation 1,628,755 General Expenses 100,059 Ratio of operating expenses to gross earnings, 76.4 per cent. PER MILE $6,358 4,863 1,495 20 1,515 1,509 6 PER MILE $1,000 494 3,174 195 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 23 . 4% 29 . 5% For Conducting Transportation and General Expenses 52.8% 44.0% For Fixed Charges 23.6% 22.6% For Surplus 2% 3.9% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 485, 178 Passenger miles per mile of road 83,030 Miles second and additional main track 6 Miles yards and sidings 151 See page 143. OF RAILROADS. 45 NEW YORK, NEW liA AVER. MILES TEAR OPERATED 1895-6 1,464 1896-7 1,464 1897-8 1,464 1898-9 2,047 1899-0 2,038 1900-1 2,027 NEW HAVEN & HARTFORD R. R. GROSS EARNINGS $30,345,630 29,623.333 30,322,738 37,143,917 40,325,151 40,132,311 SURPLUS 83,666,889 3,878,245 3,919,639 4,365,970 4,622,613 4,658,288 STOCK OUTSTANDING January 1, 1902. Common 853,614,600 Per mile of road operated . 26,450 BONDS OUTSTANDING June 30, 1901. Fixed Interest $32,536,200 The New York, New Haven & Hartford paid in 1900-1 $4,451,634 in rentals (included m Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 2,027. TOTAL Gross Earnings $40,132,311 Operating Expenses 28,048 479 Net Earnings 12,083,832 Miscellaneous Receipts 562,561 Total Net Income 12,646,393 Fixed Charges 7,988,105 Surplus 4,658,288 OPERATING EXPENSES. TOTAL Maintenance of Way $5,476,465 Maintenance of Equipment 4,448,075 Conducting Transportation 17,163,880 General Expenses 960,060 Ratio of operating expenses to gross earnings, 69.8 per cent. PER MILE $19,796 13,837 5,959 280 6,239 3,940 2,299 PER MILE $2,701 2,194 8,467 474 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses .... 24 . 3 % 24 . 7 % 23 . 9 % For Conducting Transportation and General Expenses 44.5% 44.3% 43.7% For Fixed Charges 19.6% 19.6% 20.7% ForSurplus 11.6% 11.4% 11.7% 100.0% 100.0% 100.0% 1896-7 22.7% 43.6% 20.8% 12.9% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 637,581 Passenger miles per mile of road 468,219 Miles second and additional main track 842 Miles yards and sidings 1,160 See page 143. 46 THE EARNING POWER PORTLAND & RUMFORD FALLS RY. 1897-8 1898-9 1899-0 1900-1 .VER. MILES OPERATED GROSS EARNINGS SURPLUS 68 68 68 68 $289,858 300,808 356,480 440,108 848,509 88,899 112,603 99,049 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $1,500,000 Fixed Interest $1,342,000 CAPITALIZATION. TOTAL PER MILE Stock $1,500,000 $22,058 Bonds 1,342,000 19,735 Total 2,842,000 41,793 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 68. TOTAL PER MILE Gross Earnings $440, 108 $6,472 Operating Expenses 286,297 4,210 Net Earnings 153,811 2,262 Miscellaneous Receipts 21,385 314 Total Net Income 175,196 2,576 Fixed Charges 76,047 1,119 Surplus 99,049 1,457 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $108,698 $1,598 Maintenance of Equipment 37,430 550 Conducting Transportation 120,555 1,773 General Expenses 19,616 288 Ratio of operating expenses to gross earnings, 65.1 per cent. Fixed Charges above include $11,667 paid account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses 31.6% 20.9% 25.0% 25.3% For Conducting Transportation and Gen- eral Expenses 30.3% 33.4% 30.1% 33.2% For Fixed Charges 16.4% 15.6% 18.4% 22.0% ForSurplus 21.7% 30.1% 26.5% 19.5% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Miles yards and sidings . Seepage 143. 18 OF RAILROADS. 47 RUTLAND R. R. YEAR 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED QROaS EARNINGS SURPLUS 135 135 135 297 336 $713,514 738,853 803,520 1,837,155 1,862,236 $89,158 85,805 152,388 347,834 201,369 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $208,400 Fixed Interest $10,250,000 Preferred (cumulative 7%) 5,767,000 Equipment 445,000 CAPITALIZATION. TOTAL PER MILE Stock $5,975,400 $17,784 Bonds 10,695,000 31,830 Total 16,670,400 49,614 The Rutland paid in 1900-1 $15,000 in rentals (included in Fixed Charges below) . INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 336. TOTAL PER MILE Gross Earnings $1,862,236 $5,542 Operating Expenses 1,208.428 3,596 Net Earnmgs 653,808 1,948 MiseeUaneous Receipts 20,810 60 Total Net Income 674,619 2,008 Fixed Charges 473,250 1,408 Surplus 201,369 600 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $212,453 $632 Maintenance of Equipment 174,891 520 Conducting Transportation 767,936 2,285 General Expenses 63,148 158 Ratio of operating expenses to gross earnings, 64.8 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 20.5% 21-8% 16.1% 25.0% 20.4% For Conducting Transportation and General Expenses 43.6% 36.0% 33.4% 34.2% 38,5% For Fixed Charges 25.1% 24.2% 32.4% 29.4% 29.0% ForSurplus... 10.8% 18.0% 18.1% 11.4% 12.1% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 406,730 Passenger miles per mile of road 79,427 Miles yards and sidings (about) 90 See page 144. 48 THE EARNING POWER SOMERSET RY. YEAR 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED QROSB EARNINGS simPLUs 42 884,281 $4,519 42 78,688 Def. 788 42 67,134 Def. 3,656 42 80,195 10,356 42 103,908 16,090 42 109,123 12,660 STOCK OUTSTANDING January 1, 1902. Common 8736,649 BONDS OUTSTANDING June 30, 1901. Fixed Interest $397,500 CAPITALIZATION. TOTAL Stock 8736,645 Bonda 397,500 Total 1,134,145 PER MILE 817,539 9,464 27,003 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 42. TOTAL Gross earnings 8109, 123 Operating Expenses 77,549 Net Earnings 31,574 Fixed Charges 18,914 Surplus 12,660 OPERATING EXPENSES. TOTAL Maintenance of Way 824,719 Maintenance of Equipment 10,506 Conducting Transportation 34,570 General Expenses 7,754 Ratio of operating expenses to gross earnings, 71.0 per cent. PER MILE $2,598 1,846 762 450 302 PER MILE 8588 25 J 823 184 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses.... 32. 2% 29.0% 29.7% 43.2% 33.1% For Conducting Transportation and General Expenses 38.7% 40.0% 37.7% 36.5% 48.3% For Fixed Charges 17.3% 15.3% 19.5% 25.1% 19.4% For Surplus ..11.8% 15.7% 13.1% Deficit Deficit 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 70,919 Passenger miles per mile of road 17,416 Miles sidings 5 OF RAILROADS. 49 BALTIMORE & OHIO R. R, YEAR 1899-0 1900-1 AVER. MILEa OPERATED GROSS EARNINGS SURPLUS 3,200 3,216 842,117,405 47,114,430 86,907,056 7,637,613 STOCK OUTSTANDING January 15, 1902, Conunon *872,000,000 Preferred (4%) 60,000,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest (about) . . .8220,000,000 ♦Includes about $22,000,000 issued at par in December, 1901. CAPITALIZATION. TOTAL PER MILE Stock $132,000,000 41,042 Bonds 220,000,000 68,408 Total 352, 000,000 109,450 The Baltimore & Ohio paid in 1900-1 8168,365 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 3,216. TOTAL Gross Earnings 847,114,430 Operating Expenses 31,046,231 Net Earnings 16,068,199 Miscellaneous Receipts 856,794 Total Net Income 16,924,993 Fixed Charges 9,287,381 Surplus 7,637,613 OPERATING EXPENSES. TOTAL Maintenance of Waj; 85,721,695 Maintenance of Equipment 6,104,310 Conducting Transportation 16,609,911 General Expenses 2,610,315 Ratio of operating expenses to gross earnings, 64.7 per cent. PER MILE 814,649 9,653 4,996 266 6,262 2,887 2,375 PER MILE 81,779 1,898 5,164 811 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 24.6% 22.8% For Conducting Transportation and General Expenses. 40.0% 41.3% For Fixed Charges 19.3% 19.8% For Surplus 16.1% 16.1% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 2,220,614 Passenger miles per mile of road 142,504 Miles second and additional main traclc 810 Miles yards and sidings 1,491 See page 144. so THE EARNING POWER BUFFALO & SUSQUEHANNA R. R. AVSR. MILES TEAR OPERATED GROSS EARNINGS *STmPLUS 1896-6 155 8487,844 8149,407 1896-7 155 579,798 219,633 1897-8 160 625,692 189,293 1898-9 162 767,319 157,417 1899-0 162 732,992 261,245 1900-1 165 721,966 213,550 ♦Sinking Fund payments not deducted. STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 83,518,500 Fixed Interest $3,650,000 CAPITALIZATION. TOTAL PER MILE Stock 83,518,500 821.324 Bonds 3,650,000 22, 121 Total 7,168,500 43,445 The Buffalo & Susquehanna paid in 1900-1 824,712 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 165. TOTAL PER MILE Gross Earnings 8721,966 $4,384 Operating Expenses 409,407 2,481 Net Earnings 312,559 1,903 Miscellaneous Receipts 6,428 30 Total Net Income 318,987 1,933 Fixed Charges 105,550 639 Surplus 213,550 1,294 OPERATING EXPENSES. TOTAL PER MILK Maintenance of Wajr $97,627 8591 Maintenance of Equipment 79,668 482 Conducting Transportation 174,231 1,056 General Expenses 57,882 352 Ratio of operating expenses to gross earnings, 56.5 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses. . .24.3% 21.9% 37.9% 29.0% 20.1% For Conducting Transportation and General Expenses 31.9% 29.8% 27.5% 25.6% 27.3% For Fixed Charges* 14.4% 12.6% 15.1% 15.1% 14.5% ForSurplus 29.4% 35.7% 19.5% 30.3% 38.1% 100.0% 100.0% 100.0% 100.0% 100.0% *Not including Sinking Fund payments. YEAR 1900-1. Ton miles per mile of road 195,599 Passenger miles per mile of road 21,833 Miles yards and sidings (about) 37 See page 145, OP RAILROADS. SI BUFFALO, ROCHESTER & PITTSBURGH RY. AVER. MILES TEAR OPERATED GROSS EARNINGS S URPLUS 1895-6 340 $3,141,889 $138,197 1896-7 339 3,311,766 250,970 1897-8 336 3,683,590 485,174 1898-9 338 3,788,456 493,670 1899-0 405 4,992,147 1,012,962 1900-1 472 5,803,692 1,215,470 STOCK OUTSTANDING January 1, 1902. Common $6,000,000 Preferred (6%) 6,000,000 Per mile of road operated . . 25,423 The Buffalo, Rochester & Pittsburgh paid in (included in Fixed Charges below). BONDS OUTSTANDING June 30, 1901. Fixed Interest $11,303,000 Equipment 2,033,000 1900-1 $473,726 in rentals INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. A-verage miles operated, 472. TOTAL PER MILE Gross Earnings $5,803,692 $12,296 Operating Expenses 3,277,177 6,943 Net Earnings 2,526,615 5,363 Miscellaneous Receipts 26,926 56 Total Net Income 2,553,441 6,409 Fixed Charges 1,337,971 2,834 Surplus 1,215,470 2,566 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $570,836 $1,209 Maintenance of Equipment 694,546 1,472 Conducting Transportation 1,877,422 3,977 General Expenses 134,372 284 Ratio of operating expenses to gross earnings, 56.4 per cent. Fixed Charges above include $127,400 account of "Depreciation of Securities." APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses. . .21.7% 23.0% 26.4% 27.7% 30.1% For Conducting Transportation and General Expenses 34.4% 34.6% 38.6% 36.6% 37.1% For Fixed Charges 22.9% 22.1% 22.7% 23.0% 24.2% ForSurplus 21.0% 20.3% 13.3% 12.7% 8.6% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 1,866, 184 Passenger miles per mile of road 72,797 Miles second and additional n.a.n track 14 Miles yards and sidings 186 See page 145, 52 THE EARNING POWER DELAWARE, LACKAWANNA & WESTERN R. R. AVER. MILES YEAR OPERATED GROSS EARNINGS 1896 771 «21,403,506 1897 771 21,002,017 1898 771 22,168,344 1899 771 21,325,122 1900 771 20,887,763 STOCK OUTSTANDtNG BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common S26,200,000 Fixed Interest 83,067,000 Per mile of road operated . 33,981 (maturing 1907) The Delaware, Lackawanna & Western paid in 1900 $5,150,322 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 771. TOTAL PER MILE Gross Earnings $20,887,763 $27,091 Operating Expenses 13,753,142 17,838 Net Earnings 7,134,621 9,153 Miscellaneous Receipts 1,672,625 2,270 Total Net Income 8,80", 246 11,423 Fixed Charges 6,246,415 8,101 Surplus 2,560,831 3,322 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $3,081,203 $3,996 Maintenance of Equipment 2,775,827 3,601 Conducting Transportation 7,569,490 9,817 General Expenses 326,621 423 Ratio of operating expenses to gross earnings, 65.8 per cent. Under Miscellaneous Receipts above is included $1,200,082 net profits of the Coal Department. APPROPRIATION OP GROSS INCOME. 1900 1899 For Maintenance Expenses 25.8% 20.1% For Conducting Transportation and General Expenses .. 34,8% 31.9% For Fixed Charges 27.5% 27.6% For Surplus 11 .9% 20.4% 100.0% 100.0% YEAR 1900. Ton miles per mile of road 2,445,032 Passenger miles per mile ot road 366,335 Miles second and additional main track 517 Miles yards and sidings 735 See page 146, OF RAILROADS. 53 TEAR 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 ERIE R. R. AVER. MILES OPER.ATED GROSS EARNIN< 2,098 2,125 2,124 2,109 2,109 2,156 S31, 645,487 31,495,031 33,740 860 33,752,703 38,293,032 39,102,302 STOCK OUTSTANDING January 1, 1902. Ctommon $112,378,900 Preferred (4%) 47,882,800 (4%1 16,000,000 SURPLUS i 352,6i9 633,917 653,798 1,663,431 2,823,157 BONDS OUTSTANDING June 30 1901 Fixed Interest *S175,904.100 Equipment 5,897,510 ♦Bonds include "Leased Lines." CAPITALIZATION . TOTAL PER MILE Stock $176,261,700 S81.754 Bond 181,801,610 84,323 Tota' 358,063,310 166,077 The Erie paid in 1900-1 81,362,892 ii rentals (included in Fixed Charges below) INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles ooerated, 2,156. TOTAL PER MILE Gross Earnings 839,102,302 $18,136 Operating Expenses 27,337,579 12,679 Net Earnings 11,764,723 5,4S7 Miscellaneous Receipts 1,496,077 693 Total Net Income 13,260,800 6,1.50 Fixed Charges 10,437,645 4,841 Surplus 2,823,157 1,309 OPERATING EXPENSES TOTAL PER MILE Maintenance of Way $4,288,895 81,989 Maintenance of Equipment 6.057,250 2,809 Conducting Transportation 16,138,787 7,485 General Expenses 852,647 3m5 Ratio of operating expenses to gross earnings, 69.9 per cent. Under Fixed Charges above is included but 5 months' interest on the 832,000,000 Pennsylvania Collateral 4% Bonds; profits of the Pennsylvania Coal Co. for 5i months are included above. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses .. .25.4% 28.0% 24.0% For ConductingTransportation and General Expenses 41.8% 43. S% 46.4% For Fixed Charges 25.7% 24.8% 27.6% ForSurplus 7.1% 3.4% 2.0% 1897-8 1896-7 25.6% 23.5% 46.3% 26.5% 1.6% 47.0% 28.3% 1.2% 100.0% YEAR 1900-1 Tou miles per mile of road Passenger miles per mile of road_. 100.0% 100.0% 100.0% 100 0% Miles second and additional main track Miles yards and sidings See page 146. .2,314,277 217,843 702 1,254 54 THE EARNING POWER LONG ISLAND R. R. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLCB 1896-7 379 $3,954,864 $41,050 1897-8 379 4,333,194 213,570 1898-9 379 4,622,475 211,555 1899-0 379 4,557,259 159,494 1900-1 380 4,862,347 206,164 STOCK OUTSTANDING BONDS OUTSTANDING January 1. 1902 June 30, 1901. Common $12,000,000 Fixed Interest *$26,439,941 *Include3 outstanding securities of ' easehold Estates. CAPITALIZATION. TOTAL PER MILE Stock $12,000,000 $31, .579 Bonds 26,439,941 69,578 Total 38,439,941 101,157 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 380. TOTAL Gross Earnings $4,862,347 Operating Expenses 3,516,705 Net Earnings 1.345,642 Miscellaneous Receipts 285,910 Total Net Income 1,631,552 Fixed Charges 1,425,388 Surplus 206,164 OPERATING EXPENSES. TOTAL Maintenance of Way $621,073 Maintenance of Equipment 467,352 Conducting Transportation 2,298,627 General Expenses 129,653 Ratio of operating expenses to gross earnings, 72.3 per cent. PER MILE $12,793 9,254 3,541 752 4,293 3,751 542 PER MILE $1,634 1,229 6,049 341 APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses . . .21.1% For Conducting Transportation and General Expenses 47 . 1 % For Fixed Charges 27.6% For Surplus 4.2% 1899-0 19.2% 48.5% 29.0% 3.3% 1898-9 20.1% 49.0% 26.3% 4.6% 1897-8 18.7% 48.2% 28.2% 4.9% 1896-7 18.2% 48.8% 100.0% 100.0% 100.0% 100.0% 100.0% YEAH 1900-1. Ton miles per mile of road 111,287 Passenger miles per mile of road 523,141 Miles second and additional main track 1 10 See page 147. OF RAILROADS. SS NEW YORK CENTRAL & HUDSON RIVER R. R. AVER. MILES TEAR OPERATED GROaa EARNINGS SURPLUS 1895-6 2,395 S44,479,840 84,043,793 1896-7 2,395 43,614,405 4,051,866 1897-8 2,395 45,774,240 4,654,471 1898-9 2,395 46,184,657 6,615,051 1899-0 2,817 54,562,952 7,979,028 1900-1 *3,223 66,333,111 7,742,183 ♦Includes Boston & Albany R. R. Co. STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $115,000,000 Fixed Interest. . .' $193,929,940 'Per mile of road operated 35,681 Not including bonds of leased lines. As rental, the New York Central paid in 1900-1 dividends and interest aggregating $9,204,619 on its "leased lines" securities. INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 3,223. TOTAL PER MILE Gross Earnings $66,333,111 $20,581 Operating Expenses 42,588,216 13,213 Net Earnings 23,744,895 7,368 Miscellaneous Receipts 4,530,294 1,404 Total Net Income 28,275,189 8,772 Fixed Charges 20,533,006 6,370 Surplus 7,742,183 2,402 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $7,818,966 $2,426 Maintenance of Equipment 7,832,939 2,430 Conducting Transportation 25,377,972 7,873 General Expenses 1,558,339 483 Ratio of operating expenses to gross earnings, 64.2 per cent. Fixed Charges above include $300,000 paid account Reserve for Bond Redemption. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .22.0% 21.5% 19.2% 20.0% 20.9% For Conducting Transportation and General Expenses 38.0% 35.8% 38.4% 41.3% 41.3% For Fixed Charges 28.9% 29.9% 31.2% 28.8% 28.5% ForSurplus 11.1% 12.8% 11.2% 9.9% 9.3% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 2,049,919 Passenger miles per mile of road 355,482 Miles second and additional main track 1,836 Miles yards and sidings ^ 1.940 See page 148. S6 THE EARNING POWER NEW YORK, ONTARIO & WESTERN RY. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 480 83,779,336 $376,942 1896-7 480 3,894,403 404,389 1897-8 480 3,914,635 402,460 1898-9 480 4,346,163 686,364 1899-0 480 4,963,483 859,024 1900-1 480 5,322,884 879,233 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $58,113,983 Fixed Interest $22,762,000 Preferred 5,000 Equipment 482,000 CAPITALIZATION. TOTAL PER MILE Stock $58,118,983 $121,081 Bonds 23,244,000 48,416 Total 81,362,983 169,497 The New York, Ontario & Western paid in 1900-1 $197,533 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 480. TOTAL Gross Earnings $5,322,884 Operating Expenses 3,638,341 Net Earnings 1,684,543 Miscellaneous Receipts 417,244 Total Net Income 2,101,787 Fixed Charges 1,222,554 Surplus 879,233 OPERATING EXPENSES. TOTAL Maintenance of Way $759,915 Maintenance of Equipment 686,724 Conducting Transportation 2,046,278 General Expenses 145,423 Ratio of operating expenses to gross earnings, 68.3 per cent. PER MILE $11,089 7,679 3,510 868 4,378 2,647 1,831 PER MILE $1,683 1,430 4,263 303 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .26.2% 25.2% 22.7% 25.5% 25.2% For Conducting Transportation and General Expenses 38.1% 37.4% 40.1% 42.8% 41.5% For Fixed Charges 21.3% 20.9% 21.9% 22.7% 23.0% ForSiuplus 15.4% 16.5% 15.3% 9.0% 10.3% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 1,075,281 Passenger miles per mile of road 97,257 Miles yards and sidings 186 See page 149. OF RAILROADS. 57 NEW YORK, SUSQUEHANNA & WESTERN R. R. AVER MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 228 82,240,190 $79,243 1896-7 228 2,265,880 88,438 1897-8 238 2,329,119 119,716 1898-9 238 2,446,653 166,789 1899-0 238 2,582,116 205,073 1900-1 238 2,504,889 146,581 STOCK OUTSTANDING Jaauary 1, 1902. Commoii $13,000,000 Preferred 13,000,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $16,189,000 CAPITALIZATION. TOTAL PER MILE Stock $26,000,000 $109,243 Bonds 16,189,000 68,021 Total 42,189,000 177,264 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 238. TOTAL PER MILE Gross Earnings $2,504,887 $10,624 Operating Expenses .' 1,377,771 5,789 Net Earnings 1,127,116 4,735 Miscellaneous Receipts 29,570 125 Total Net Income 1,156,686 4,860 Fixed Charges 1,010,105 4.429 Surplus 146,581 431 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $232,299 $976 Maintenance of Equipment 277,532 1,166 Conducting Transportation 843,484 3,544 General Expenses 24,456 102 Ratio of operating ex_penses to gross earnings, 54.3 per cent. Fixed Charges above mclude over $50,000 paid account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .20.1% 20.9% 19.0% 15.0% 17.2% For Conducting Transportation and General Expenses 34.2% 33.3% 33.7% 38.2% 38.4% For Fixed Charges 41.5% 37.7% 40.4% 41.5% 40.4%, ForSurplus 4.2% 8.1% 6.9% 5.3% 4.0% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Miles second and additional main track 23 Miles yards and sidings 79 See page 149. S8 THE EARNING POWER NORTHERN CENTRAL RY. TEAR 1896 1897 1898 1899 1900 AVER. MILES OPERATED GROSS EARNINGS BCHPLUB 380 $6,286,602 8603,858 380 6,732,703 922,870 380 6,664,028 1,005,370 380 7,233,417 1,143,615 381 7,845,412 1,695,484 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common 911,462,000 Fixed Interest $9,690,386 CAPITALIZATION . TOTAL PER MILE Stock $11,462,000 $30,084 Bonds 9,690,386 25,486 Total 21,152,386 55,570 The Northern Central paid in 1900 $509,036 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 381. TOTAL PER MILE Gross Earnings $7,846,412 $20,591 Operating Expenses 5,497,538 14,429 Net Earnings 2,347,874 6,162 Miscellaneous Receipts 632,194 1,659 Total Net Income 2,980,068 7,821 Fixed Charges 1,284,584 3,372 Surplus 1,695,484 4,449 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $1,033,776 $2,713 Maintenance of Equipment 1,321,593 3,469 Conducting Transportation 3,015,600 7,914 General Expenses 126,569 332 Ratio of operating expenses to gross earnings, 70.1 per cent. APPROPRIATION OF GROSS INCOME. 1900 1899 1898 1897 For Maintenance Expenses 27.7% 28.1% 26.5% 27.4% For Conducting Transportation and Gen- eral Expenses 37.0% 39.8% 40.7% 40.1% For Fixed Charges 15.1% 17.2% 18.8% 19.4% ForSurplu? 20.2% 14.9% 14.0% 13.1% 100.0% 100.0% 100.0% 100.0% TEAR 1900. Ton miles per mile of road 2,874,790 Passenger miles per m'le of road 156,222 M^les second and additional main track 135 Miles yards and sidings 227 See page 149. TEAR 189& 1897 1898 1899 1900 OF RJ LILROADS. 59 PENNSYLVANIA R. R. iVER. MILES OPERATED GROSa EARNINGS SURPLUS 2,787 2,813 2,821 2,847 3,243 862,096,503 64,223,113 65,603.738 72,922,985 88,539,827 88,748,722 10,413,943 10,210.794 11,047,885 16,771,499 STOCK OUTSTANDING January 1, 1902. Common *$202,200,800 Per mile of road operated 62,349 *Includes 850,500,250 issued at 8120 a share, in April, 1901. BONDS OUTSTANDING December 31, 1900. Fixed Interest 888,633,536 Not including bonds of leased and operated roads. The Pennsylvania paid in 1900 as rentals 812,224,520 (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING DECEMBER 31, 1900. Average miles operated, 3,243. TOTAL PER MILE Gross Earnings 888,539,827 826,716 Operating Expenses 58,099,206 17,531 Net Earnings 30,440,621 9,185 Miscellaneous Receipts 6,491,145 1,954 Total Net Income 36,931,766 11,149 Fixed Charges 20,160,267 6,083 Surplus 16,771,499 5,059 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Wajr $11,291,549 83,407 Maintenance of Equipment 13,495,997 4,072 Conducting Transportation 31,346,711 9,459 General Expenses 1,964,947 593 Ratio of operating expenses to gross earnings, 65.6 per cent. Fixed Charges above include $642,431 paid account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1900 For Maintenance Expenses 26.0% For Conducting Transportation and Gen'l Expenses 35 . 0% For Fixed Charges 21 .2% For Surplus 17 .8% 100.0% 1899 1898 25.5% 38.6% 21.7% 14.2% 23.7% 38.8% 23.0% 14.5% 100.0% 100.0% YEAR 1900. Ton miles per mile of road 3,676,432 Passenger miles per mile of road 283, 132 Miles second and additional main track 1,549 Miles yards and sidings 2,264 See page ISO. 6o THE EARNING POWER PHILADELPHIA, WILMINGTON & BALTIMORE E. R. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 1896-7 1897-8 1898-9 1899-0 669 669 669 669 670 89,047,131 8,791,436 9.601,563 10,392,806 11,324,532 Jl,231,473 1,298,107 1,271,603 1,574,584 1,896,997 STOCK OUTSTANDING January 1, 1902. Common $11,819,350 Per mile of road operated . . 17,640 BONDS OUTSTANDING October 31, 1900. Fixed Interest $5,093,765 The Philadelphia, Wilmington & Baltimore paid in 1900 $1,752,895 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING OCTOBER 31, 1900. Average miles operated, 670. TOTAL PER MILE Gross Earnings $11,324,532 $16,895 Operating Expenses 7,788,900 11,625 Net Earnings 3,535,632 5,270 Miscellaneous Receipts 569,492 842 Total Net Income 4,095,124 6,112 Fixed Charges 2,198,127 3,280 Surplus 1,896,997 2,832 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $1,863,403 $2,781 Maintenance of Equipment 1,327,145 1,980 Conducting Transportation 4,406,972 6,577 General Expenses 191,380 286 Ratio of. operating expenses to gross earnings, 68.8 per cent. Fixed Charges above include $36,000 payments account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses , 26.8% 26.0% 28.9% 25.0% For Conducting Transportation and Gen- eral Expenses 38.7% 40.6% 42.0% 44.1% For Fixed Charges 18.5% 18.8% 16.3% 16.7% ForSurplus 16.0% 14.6% 12.8% 14.2% 100.0% 100.0% 100.0% 100.070 TEAR 1899-0. Ton miles per mile of road 705,829 Passenger miles per mile of road 356,853 Miles second and additional main track 208 Miles yards and sidings 252 See page 151. OF RAILROADS. 6l PITTSBURGH & LAKE ERIE R. R. 1896 1897 1898 1899 1900 AVER. MILES OPERATED GROSS EARNINGS SURPLUS 177 177 180 180 180 S4,501,421 4,666,686 5,071,376 5,875,270 7,122,814 8712,032 738,031 707,289 901,348 880,924 STOCK OUTSTANDING January 1, 1902. Common 84,000,000 BONDS OUTSTANDING December 31, 1900. Fixed Interest $4,000,000 Equipment 187,500 CAPITALIZATION. TOTAL Stock 84,000,000 Bonds 4,187,500 Total 8, 187,500 The Pittsburgh & Lake Erie paid in 1900 8472,373 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 180. TOTAL Gross Earnings 87,122,814 Operating Expenses 5,445,513 Net Earnings 1,677,301 Miscellaneous Receipts 22,208 Total Net Income 1,699,609 Fixed Charges 818,585 Surplus 880,924 OPERATING EXPENSES. TOTAL Maintenance of Way 81,987,957 Maintenance of Equipment 1,278,227 Conducting Transportation 2,053,954 General Expenses 125,374 Ratio of operating expenses to gross earnings, 76.4 per cent. PER MILE 822,222 23,264 45,486 PER MILE $39,571 30,262 9,319 122 9,441 4,547 4,894 PER MILE $11,044 7,101 11,410 696 APPROPRIATION OF GROSS INCOME. 1900 1899 1898 1897 For Maintenance Expenses 45.7% 36.4% 34.6% 30.0% For Conducting Transportation and Gen- eral Expenses 30.5% 34.5% 35.8% 16.9% For Fixed Charges 11.4% 13.7% 15.6% 17.1% For Surplus 12.4% 15.4% 14.0% 16.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900. Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track Miles yards and sidings See page 152. 5,582,270 209,171 109 267 62 THE EARNING POWER WEST JERSEY & SEASHORE R. R. AVER. MILES YEAR OPERATED GROSS EARNINGS SURPLUS 1896 310 12,554,920 8263,224 1897 310 2,550,940 286,996 1898 310 2,682,124 332,854 1899 332 3,114,192 566,405 1900 332 3,490,457 653,946 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. ComDion 84,951,350 Fixed Interest 84,988,900 CAPITALIZATION . TOTAL PER MILE Stock 84,951,350 - 814,914 Bonds 4,988,900 15,024 Total 9,940,250 29,938 The West Jersey & Seashore paid in 1900 $15,816 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 332. TOTAL Gross Earnings 83,490,457 Operating Expenses 2,556, 181 Net Earnmgs 934,276 Miscellaneous Receipts 23,394 Total Net Income 957,672 Fixed Charges 303,726 Surplus 653,946 OPERATING EXPENSES. TOTAL Maintenance of Way 8633,614 Maintenance of Equipment 456,068 Conducting Transportation 1,415,036 General Expenses 51,463 Ratio of operating expenses to gross earnings, 73.2 per cent. PER MILE $10,513 7,699 2,814 70 2,884 915 1,969 PER MILE $1,908 1,373 4,262 155 APPROPRIATION OF GROSS INCOME. 1900 1899 1898 1897 For Maintenance Expenses 31.0% 29.7% 30.0% 30.5% For Conducting Transportation and Gen- eral Expenses 41.7% 41.6% 44.3% 46.1% For Fixed Charges 8.6% 10.5% 12.9% 12.2% ForSurplus 18.7% 18.2% 12.8% 11.2% 100.0% 100.0% 100.0% 100.0% YEAR 1900. Ton miles per mile of road 132,820 Passenger miles per mile of road 406,636 Miles second and additional main track 98 Miles yards and sidings 90 See page 152, OP RAILROADS. 63 ANN ARBOR R. R. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1897- 1898- 1899- 1900- -8 -9 -0 -1 292 292 292 292 81,415,559 1,519,334 1,721,453 1,754,148 $62,592 17,986 67,024 113,921 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 83,250,000 Fixed Interest $7,000,000 Preferred (5%) 4,000,000 CAPITALIZATION . TOTAL PER MILE Stock $7,250,000 $24,828 Bonds 7,000,000 23,972 Total 14,250,000 48,800 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 292. TOTAL Gross Earnings $1,754,148 Operating Expenses 1,309, 163 Net Earnings 444,985 Total Net Income 444,985 Fixed Charges .- 331,064 Surplus 113,921 OPERATING EXPENSES. TOTAL Maintenance of Way $348,692 Maintenance of Equipment 304,702 Conducting Transportation 602,842 General Expenses 52,927 Ratio of operating expenses to gross earnings, 74.5 per cent. PER MILE $6,007 4,483 1,524 1,524 1,133 391 PER MILE $1,194 1,043 2,064 181 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses 37.2% 40.6% 38.8% 32.0% For Conducting Transportation and Gen- eral Expenses 37.3% 36.2% 38.3% 40.1% For Fixed Charges 18.8% 19.1% 21.6% 23.1% ForSurplus 6.7% 4.1% 1.3% 4.8% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1 Ton miles per mile of road 654,966 Passenger miles per mile of road 52,002 Miles yards and sidings 87 See page 152. 64 THE EARNING POWER CHICAGO & ALTON RY. AVER. MILES TEAR OPERATED GROSS EARNINGS 1899-0 *856 $7,796,449 1900-1 919 9,036,655 ♦Chicago & Alton R. R. STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $20,000,000 Fixed Interest $54,000,000 Preferred (4%) 20,000,000 Includes $32,000,000 C. & A, R. R. 3s. Cash is deposited to retire all old underlying bonds. CAPITALIZATION . TOTAL PER MILE Stock $40,000,000 $43,526 Bonds 54,000,000 58,759 Total 94,000,000 102,285 Under "Fixed Charges" below is included $237,027, representing dividends paid as rental. INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. (Revised from official statement.) Average miles operated, 919. TOTAL PER MILE Gross Earnings $9,036,655 $9,833 Operating Expenses 5,596,668 6,088 Net Earnings 3,440,987 3,745 Miscellaneous Receipts 5,759 5 Total Net Income 3,446,746 3,750 Fixed Charges 2,297,004 2,499 Surplus 1,149,742 1,251 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $1,109,513 $1,207 Maintenance of Equipment 879,412 956 Conducting Transportation 3,384,636 3,682 General Expenses 222,105 242 Ratio of operating expenses to gross earnings, 61.9 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 22.0% 19.1% For Conducting Transportation and Genera! Expenses. .39.9% 39.0% For Fixed Charges 25.4% *29.5% For Surplus 12.7% 12.4% 100.0% 100.0% *The Fixed Charges of 1900-1 are applied against the earnings of 1899-0 for the sake of comparison. YEAH 1900-1. Ton miles per mile of road 895,614 Passenger miles per mile of road 144,600 Miles second and additional main track 105 Miles yards and sidings 242 See page 153. OF RAILROADS. 6S CHICAGO & EASTERN ILLINOIS R. R. AVER. MILES YEAK OPERATED 0R08B EARNINGS anRPLUa 1895-6 521 $4,014,623 1531,906 1896-7 590 3,927,610 417,697 1897-8 648 4,221,438 455,387 1898-9 648 4,581,561 767,364 1899-0 674 5,148,897 990,372 1900-1 719 5,659,446 1,067,966 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $7,197,800 Fixed Interest $23,919,000 Preferred (6%) 6,830,700 Equipment 155,548 CAPITALIZATION . TOTAL PER MILE Stock $14,028,500 $19,511 Bonds 24,074,548 33,483 Total 38, 103,048 52,994 The Chicago & Eastern Illinois paid in 1900-1 $137,578 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 719. TOTAL PER MILE Gross Earnings $5,659,446 $7,871 Operating Expenses 3,245,760 4,514 Net Earnings 2,413,686 3,367 Miscellaneous Receipts 219,063 304 Total Net Income 2,632,749 3,661 Fixed Charges 1,564,783 2,176 Surplus 1,067,966 1,484 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $625,618 $870 Maintenance of Equipment 605,602 842 Conducting Transportation 1,854,968 2,580 General Expenses 169,572 221 Ratio of operating expenses to gross e.irnings, 57.3 per cent. APPROPRIATION OP GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .20.9% 19.5% 18.4% 19.8% 18.6% For Conducting Transportation and General Expenses 34.2% 33.7% 33.7% 35.0% 36.1% For Fixed Charges 26.6% 28.2% 31.7% 34.8% 34.8% ForSurplus 18.3% 18.6% 16.2% 10.4% 10.6% 100.0% 100,0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track Miles yards and sidings See page 153, 1,275,619 82,747 106 291 66 THE EARNING POWER CHICAGO & NORTHWESTERN RY. AVER. MILES TEAR OPERATED GROSS EARNINGS StTRPLUS 189S-6 5,031 833.488,761 85,368,082 1896-7 5 031 30,977.243 4,690,621 1897-8 5,071 36,050,561 5,755,147 1898-9 5,077 38,016,314 7,168,595 1899-0 5,219 42,950,805 10,061,556 1900-1 5,507 43,098,587 9,821,287 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. May 31, 1901. Common 839,114,678 Fixed Interest 8145,264,000 Preferred (7%) 22,395,120 Includes $3,885,500 in Sinking Funds. CAPITALIZATION. TOTAL PER MILE Stock $61,509,798 811,167 Bonds 145,264,000 26,378 Total 206,773,798 37,545 INCOME ACCOUNT TEAR ENDING MAT 31, 1901. Average miles operated, 5,507. TOTAL PER MILE Gross Earnings 843,098,587 87,826 Operating Expenses 25,851,689 4,694 Net Earnings 17,246,898 3,132 Miscellaneous Receipts 1,419,680 257 Total Net Income 18,666,578 3,389 Fixed Charges 8,845,291 1,606 Surplus 9,821,287 1.783 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way 85,640,098 $1,006 Maintenance of Equipment 3,856,974 700 Conducting Transportation 16,691,535 2,831 General Expenses 864,082 166 Ratio of operating expenses to gross earnings, 59.9 per cent. Fixed Charges above include $225,000 paid account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .21.1% 22.4% 24.7% 24.7% 22.5% For ConductingTransportation and General Expenses 36.9% 35.7% 35.2% 36.3% 36.8% For Fixed Charges 19.8% 19.1% 21.6% 23.3% 26.1% ForSurplus 22.2% 22.8% 18.6% 15.7% 14.6% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 672, 129 Passenger miles per mile of road 87,756 Miles second and additional main track 714 Miles yards and sidings 1,976 See page 1C4. Of railroads. 67 CHICAGO, BURLINGTON & QUINCY R. R. YEAR 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED 7,180 7,180 7,249 7,546 7,753 GROSS EARNINGS 835,526,186 42,800,162 43,389,425 47,535,420 50,051,989 SURPLUS «3, 807,847 6,082,792 6,728,299 7,928,761 8,125,408 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Conimon S110,577,700 Fixed Interest $147,204,300 Includes $9,804,600 issued at par in Includes over $14,000,000 in Sinking January, 1901. Funds. CAPITALIZATION. TOTAL Stock $110,577,700 Bonds 147,204,300 Total 257,782,000 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 7,753. TOTAL Gross Earnings $50,051,989 Operating Expenses 32,441,891 Net Earnings 17,610,098 Miscellaneous Receipts 380,798 Total Net Income 17,990,896 Fixed Charges 9,865,488 Surplus 8,125,408 OPERATING EXPENSES. TOTAL Maintenance of Wajr $8,676,029 Maintenance of Equipment 6,094.873 Conducting Transportation 16,1 79,511 General Expenses 1,491,478 Ratio of operating expenses to gross earnings, 64.8 per cent. Fixed Charges above include $1,223,879 paid into Sinking Funds APPROPRIAT ON OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 29.2% 28.3% For Conducting Transportation and Gen- eral Expenses 35.0% 33.8% For Fixed Charges 19.5% 21.0% ForSurplus 16.3% 16.9% 100.0% 100.0% PER MILE $14,262 18,986 33,248 PER MILE $6,455 4,184 2,271 . 49 2,320 1,272 1,048 PER MILE $1,119 784 2,087 193 1898-9 25.3% 35.1% 24.1% 15.5% 100.0% 100.0% 1897-8 27.1% 33.4% 25.3% 14.2% TEAR 1900-1. Ton miles per mile of road 499,229 Passenger miles per mile of road 68,771 Miles second and additional main track 423 Miles yards and sidi .gs (about) ._. 1,750 See page 165. 68 THE EARNING POWER CHICAGO GIIEAT WESTERN RY. AVER. MILES YEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 927 S4,709,821 S161,994 Deficit, 27;638 1896-7 928 4,680,860 1897-8 930 5,386,044 242,435 1898-9 930 5,867,739 464,050 1899-0 930 6,721,037 712,404 1900-1 930 7,013,862 559,513 STOCK OUTSTANDING BONDS OUTSTANDING January 1. 1902. June 30, 1901. Common $21,315,545 Debenture Stock $24,708,998 Preferred (A) (6%) 11,304,500 Equipment 366,476 (B) (4%) 7,468,090 CAPITALIZATION. TOTAL PER MILE Stock $40,088,135 $43,105 Bonds 25,075,474 26,962 Total 65,163,609 70,067 The Chicago Great Western paid in 1900-1 $384,816 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 930. TOTAL Gross Earnings $7,013,862 Operating Expenses 4,831,515 Net Earnings 2,182,346 Total Net Income 2,182,346 Fixed Charges 1,622,833 Surplus 559,513 OPERATING EXPENSES. TOTAL Maintenance of Way $929,364 Maintenance of Equipment 654,503 Conducting Transportation 2,838,929 General Expenses 408,718 Ratio of operating expenses to gross earnings, 67.2 per cent. PER MILE $7,541 •6,195 2,346 2,346 1,745 601 PER MILE $999 704 3,052 439 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses ... 22 . 5% 21 . 3% 21.5% 23 . 2% 24 . 4% For Conducting Transportation- and General Expenses 46.2% 45.4% 45.7% 46.8% 48.8% For Fixed Charges 23.1% 22.6% 24.8% 25.3% 27.3% For Surplus 8.2% 10.8% 8.0% 4.7% Deficit 100.0% 100.0% 100.0% 100.0% „ „ YEAR 1900-1. Ion miles per mile of road 896,558 Passenger miles per mile of road 61,346 See page 156. OF RAILROADS. 69 CHICAGO, INDIANAPOLIS & LOUISVILLE RY. AVER. MILES YEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 537 83,291,972 J162.898 1896-7 535 2,902,760 Deficit, 75,062 1897-8 535 3,323,671 89,129 1898-9 535 3,501,121 274,748 1899-0 635 4,177,888 685,680 1900-1 535 4,150,471 652,775 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $10,500,000 Fixed Interest $13,542,000 Preferred (4%) 5,000,000 Equipment 160,318 CAPITALIZATION. TOTAL PER MILE Stock 815,500,000 828,971 Bonds 13,702,318 25,611 Total 29,202,318 54,582 The Chicago, Indianapolis & Louisville paid in 1900-1 $208,636 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 535. TOTAL PER MILE Gross Earnings $4,150,471 $7,757 Operating Expenses 2,462,802 4,602 Net Earnings 1,687,669 3,155 Miscellaneous Receipts 135,776 253 Total Net Income 1,823,445 3,408 Fixed Charges 1,170,670 2,188 Surplus 652,775 1,220 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $523,868 $979 Maintenance of Equipment 515,705 963 Conducting Transportation 1,137,358 2,125 General Expenses 285,871 534 Ratio of operating expenses to gross earnings, 59.3 per cent. APPROPRIATION OF GR03S INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .24.2% 24.4% 24.3% 26.0% 22.9% For Conducting Transportation and General Expenses 33 . 1% 32 . 5% 36 . 2% 38 . 2% 40 . 0% For Fixed Charges 27.3% 27.0% 31.8% 33.2% 39.5% ForSurplus 15.4% 16.1% 7.7% 2.6% Deficit 100.0% 100.0% 100.0%, 100.0% YEAR 1900-1. Ton miles per mile of road 668,237 Passenger miles per mile of road , 98,680 Miles yards and sidings - 163 See page 156. 70 THE EARNING POWER CHICAGO, MILWAUKEE & ST. PAUL RY. AVER. MILES YEAH OPERATED GROSS EARNINGS SURPLUS 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 6,188 6,191 6,191 6,191 6,347 6,512 832.681,829 30,486.768 34,189,664 38,310,632 41,884,692 42,369,013 85,750,390 4,783,306 7,053,684 9,500,086 9,940,745 10,479,414 1 3TOOK OUTSTANDING January 1, 1902. BONDS OUTSTANDING June 30, 1901. Common *S55,821,800 Fixed Interest 8126,941,500 Preferred (7%) 44,658,400 ♦Includes $8,673,200 issued at par in April, 1901. CAPITALIZATION. TOTAL PER MILE Stock 8100,480,200 $15,352 Bonds 126,941,500 19,493 Total 227,421,700 34,845 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 6,512. TOTAL PER MILE Gross Earnings $42,369,013 $6,506 Operating Expenses 24,277,604 3,728 Net Earnings 18,091,409 2,778 Miscellaneous Receipts 174,683 26 Total Net Income 18,266,092 2,804 Fixed Charges 7,786,678 1,195 Surplus 10,479,414 1,609 OPERATING EXPENSES. TOTAL PER MILE ♦Maintenance of Way $6,505,864 $999 ♦Maintenance of Equipment 3,024,725 464 Conducting Transportation 13,932,064 2,139 General Expenses 814,951 125 Ratio of operating expenses to gross earnings, 57.3 per cent. ♦Maintenance expenses do not include special appropriations for better- ments, etc. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .22.4% 25.2% 22.1% 22.0% 22.2% For Conducting Transportation and General Expenses 34 . 6% 32 . 1% 32 . 0% 33 . 1% 33 . 8% For Fixed Charges 18.2% 19,0% 21.0% 24.2% 28.2% For Surplus 24.8% 23.7% 24.9% 20.7%, 15.8% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track Miles yards and sidings See page 156. 558,965 51,695 302 1,676 OF RAILROADS. 71 CHICAGO, ROCK ISLAND & PACIFIC RY. AVER. MILES YEAR OPERATED GROSS EARNINGS SUBPLUfl 1895-6 3,571 J17,359,653 81,423,708 1896-7 3,571 17,146,653 1,443,597 1897-8 3,568 19,548,584 3,321,853 1898-9 3,619 20,667,915 3,773,118 1899-0 3,647 22,650,605 4,462,061 1900-1 3,819 25,364,695 5,097,018 STOCK OUTSTANDING BONDS OUTSTANDING JaDuary 1, 1902. March 31, 1901. Common 860,000,000 Fixed Interest 868,081,000 Includes $10,000,000 issued since close of year. CAPITALIZATION. TOTAL PER MILE Stock $60,000,000 S15,710 Bonds 68,081,000 17,827 Total 128,081,000 33,537 The Chicago, Rock Island & Pacific paid in 1900-1 $891,984 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING MARCH 31, 1901. Average miles operated, 3,819. TOTAL PER MILE Gross Earnings $25,364,695 $6,641 Operating Expenses 16,224,064 4,248 Net Earnings 9,140,631 2,393 Miscellaneous Receipts 701.379 184 Total Net Income 9,842,010 2,577 Fixed Charges 4,744,992 1,242 Surplus 5,097,018 1,335 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Wajf $4,697,294 $1,203 Maintenance of Equipment 2,981,190 780 Conducting Transportation 8,055,311 2,109 General Expenses 590,269 154 Ratio of operating expenses to gross earnings, 63.9 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses . . . 29 . 0% For Conducting Transportation and General Expenses 33. 1% For Fixed Charges 18. 1% For Surplus 19.8% 1899-0 26.6% 33.6% 20.5% 19.3% 1898-9 24.7% 34.9% 22.6% 17.8% 1397-8 23.4% 35.3% 24.8% 16.5% 1896-7 24.1% 38.6% 28.9% 8.6% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 468,471 Passenger miles per mile of road 77,494 Miles second and additional main track 249 See page 157, 72 THE EARNING POWER CHICAGO, ST. PAUL, MINNEAPOLIS & OMAHA RY. AVER. MILES YEAR OPERATED GROSS EARNINGS SURPLUS 1896 1,492 $8,156,192 81,499,859 1897 1,492 8,662,793 1,389,251 1898 1,492 9,590,993 1,994,054 1899 1,498 10,488,815 2,491,335 1900 1,544 10,342,000 2,398,124 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common $15,714,813 Fixed Interest 825,831,324 Preferred (7%) 9,872,992 CAPITALIZATION. TOTAL PER MILE Stock $25,587,805 $16,572 Bonds 25,831,324 16,730 Total 51,419,129 33,302 The "Omaha" paid in 1900 $110,243 in rentals (included in Fixed Charges below) . INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 1,544. TOTAL PER MILE Gross Earnings $10,342,000 $6,698 Operating Expenses 6,094, 136 3,944 Net Earnings 4,247,864 2,746 Total Net Income 4,247,864 2,746 Fixed Charges 1,849,740 1,198 Surplus 2,398,124 1,548 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Waj; 81,896,898 $1,228 Maintenance of Equipment 915,283 592 Conducting Transportation 3,040,878 1,968 General Expenses 241,077 156 Ratio of operating expenses to gross earnings, 58.9 per cent. APPROPRIATION OF GROSS INCOME. 1900 1899 1898 For Maintenance Expenses 27.1% 27.4% 29.7% For Conducting Transportation and General Expenses 31.7% 30.9% 30.0% For Fixed Charges 17.8% 17.8% 19.3% ForSurplus 23.4% 23.9% 21.0% 100.0% 100.0% 100.0% YEAH 1900. Ton miles per mile of road 489,466 Passenger miles per mile of road. 65,122 Miles second and additional main track 33 Miles yards and sidings 459 See page 157, OF RAILROADS. 73 CHICAGO TERMINAL TRANSFER R. R. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1897-8 1898-9 1899-0 1900-1 100 100 103 108 81,119,261 1,221,107 1,265,961 1,430,990 8101,600 106,961 92,027 11,422 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 813,000,000 Fixed Interest $14,629,000 Preferred (4%) 17,000,000 CAPITALIZATION. TOTAL PER MILE Stock 830,000,000 $277,777 Bonds 14,629,000 134,713 Total 44,629,000 412,490 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 108. TOTAL Gross Earnings $1,430,990 Operating Expenses 738,778 Net Earnings 692,212 Fixed Charges 680,790 Surplus 11,422 OPERATING EXPENSES. TOTAL Maintenance of Way $97,016 Maintenance of Equipment 127 429 Conducting Transportation 432 657 General Expenses 81,675 Ratio of operating expense.s to gross earnings, 51.6 per cent. Gross Earnings above include all receipts from tenants. PER MILE 813,249 6,840 6,409 6,303 106 PER MILE $898 1,179 4,006 756 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 15.7% 10. 7% For Conducting Transportation and Gen- oral Expenses 35 . 9% 29 . 5% For Fixed Charges 47.5% 62.5% For Surplus 9% 7.3% 100.0% 100.0% 1898-9 1897-8 10.1% 8.7% 27.8% 25.0% 53.2% 57.1% 8.9% 9.2% 100.0% 100.0% TEAJR 1900-1. Ton miles per mile of road not reported. Passenger miles per mile of road "_ " Miles second and additional main track 54 Miles yards and hidings, , , . , 111 See page 158, 74 THE EARNING POWER CINCINNATI & MUSKINGUM VALLEY R. R. YEAR 1896 1897 1898 1899 1900 AVER. MILES OPERATED GE088 EARNINGS SUHPLTJB 148 148 148 148 148 $410,634 446,458 491.977 513,227 641,628 Deficit, $39,985 Deficit, 71,279 29,711 62,847 43,441 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common $2,000,000 Fixed Interest $1,500,000 CAPITALIZATION. TOTAL PER MILE Stock $2,000,000 $13,514 Bonds , 1,500,000 10,134 Total 3,500,000 23,648 INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 148. TOTAL Gross Earnings $541,628 Operating Expenses 416,584 Net Earnings 125,044 Fixed Charges 81,603 Surplus 43,441 OPERATING EXPENSES. TOTAL Maintenance of Way; $142,177 Maintenance of Equipment 64,613 Conducting Transportation 205,327 General Expenses 4,467 Ratio of operating expenses to gross earnings, 76.6 per cent. $3,673 2,815 858 S5i 307 PER MILE $960 436 1,397 31 APPROPRIATION OF GROSS INCOME. 1900 1899 1898 1897 For Maintenance Expenses 38 0% 33.0% 36.7% 44.9% For Conducting Transportation and Gen- eral Expenses 38.8% 38.8% 40.0% 41.9% For Fixed Charges 15 . 0% 15.8% 17 1% 17 . 8% ForSurplus 8.2% 12.4% 6,2% Deficit 100.0% 100.0% 100.0% YEAR 1900 Ton miles per mile of road 239,113 Passenger miles per mile of road 40,852 Miles yards and sidings 46 See page 158. OF RAILROADS. 75 CINCINNATI, HAMILTON & DAYTON RY. AVER. MILES TEAR OPERATED GROSS EARNINGS euRPLtrs 1895-6 652 $5,147,562 8580,022 1896-7 652 4,627,352 370,693 1897-8 652 4,908,563 456,028 1898-9 652 5,241,503 550,700 1899-0 652 5,735,531 697,691 1900-1 652 5,837,916 756,363 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $8,000,000 Fixed Interest $12,295,000 Preferred (5% and 4%) 8,000,000 CAPITALIZATION. TOTAL PER MILE Stock - . . . . .$16,000,000 $24,615 Bonds 12.295.000 18,857 Total 28,295,000 43,472 Guaranteed stocks and bonds (interest and dividends as rentals), $8,141,150. INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated. 652. • TOTAL Gross Earnings $5,837,916 Operating Expenses 3,844,946 Net Earnings 1,992,970 Total Net Income 1,992,970 Fixed Charges 1,236,607 Surplus 766,363 OPERATING EXPENSES. TOTAL Maintenance of Way $567,201 Maintenance of Equipment 615,805 Conducting Transportation 2.509,324 General Expenses 152,616 Ratio of operating expenses to gross earnings, 65. S per cent. PER MILE $8,953 5,896 3.057 3,057 1,896 1,161 PER MILE $870 944 3,S48 234 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses ... 20 . 2% 19.4% 18.8% For Conducting Transportation and General Expenses 45 . 6% 46 . 0% 47 . 4% For Fixed Charges 21.1% 21.2% 23.1% ForSurplus 13.1% 13.4% 10.7% 1897-8 19.0% 47.1% 24 5% 9.4% 1896-7 18.7% 47.0% 26.1% 8.2% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900- Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track .... Miles yards and sidings .,,.,. See page 158, 954,371 1.30,265 32 220 76 THE EARNING POWER CLEVELAND & MARIETTA RY. YEAR 1896 1897 1898 1899 1900 AVER. MILEB OPERATED GROSS EARNINGS SUHPLCB 110 $360,308 S126 110 355,721 Deficit. 46,884 110 421,988 10,572 110 607,980 Deficit, 9,568 110 693,735 78,070 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common $2,000,000 Fixed Interest $1,250,000 CAPITALIZATION. TOTAL PER MILE Bonds $2,000,000 $18,181 Stocks 1,250,000 11,363 Total 3,250,000 29,544 INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 110. TOTAL Gross Earnings $593,735 Operating Expenses 447,175 Net Earnings 146, 560 Miscellaneous Receipts 1,480 Total Net Income 148,040 Fixed Charges 69,970 Surplus 78,070 OPERATING EXPENSES. TOTAL Maintenance of Way $144,104 Maintenance of Equipment 89,731 Conducting Transportation 200,923 General Expenses 12,417 Ratio of operating expenses to gross earnings, 75.3 per cent. PER MILE $5,397 4,065 1,332 13 1.345 636 709 PER MILE $1,310 815 1,826 113 APPROPRIATION OF GROSS INCOME. 1900 1899 For Maintenance Expenses 39.2% 43.1% For Conducting Transportation and Gen- eral Expenses 35.8% 44.8% For Fixed Charges ll-7% 13.8% For Surplus 13,3% Deficit 100.0% 100.0% 1897 47.8% 45.8% 19.4% Deficit YEAR 1900. Ton miles per mile of road 481,336 Passenger miles per mile of road 43,051 Miles yards and sidings 32 See page 159. OF RAILROADS. 77 CLEVELAND, AKRON & COLUMBUS RY. AVER. MILES TEAK OPERATED GROSS EARNINGS SDRPLDS 1895-6 233 8874,920 862,567 1896-7 232 718,051 Deficit, 39,060 1897-8 232 869,002 43,726 1898-9 205 891,972 77,771 1899-0 204 1,066,279 61,093 1900-1 214 1,111,312 133,372 STOCK OTrrSTANDINO BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 84,000,000 Fixed Interest 83,600,000 CAPITALIZATION. TOTAL PER MILE Stock 84,000,000 818,691 Bonds 3,600,000 16,822 Total 7,600,000 35,513 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 214. TOTAL Gross Earnings 81,111,312 Operating Expenses 788,339 Net Earmngs 322,973 Miscellaneoxis Receipts 4,484 Total Net Income 327,457 Fixed Charges 194,085 Surplus 133,372 OPERATING EXPENSES. TOTAL Maintenance of Way 8134,210 Maintenance of Equipment 186,241 Conducting Transportation 445,380 General Expenses 22,508 Ratio of operating expens&s to gross earnings, 70.9 per cent. The fiscal year now ends December 31. PER MILE 85,193 3,683 1,510 20 1.530 906 624 PER MILE 8627 870 2,081 105 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .. .28.7% 34.6% 21.4% 23.2% 23.4% J^'or Conducting Transportation and General Expenses 41 . 7% 41 . 4% 46 . 9% 52 . 0% 56 . 9% For Fixed Charges 17.3% 18.1% 22.8% 19.6% 25.0% ForSurplus 12.3% 5.9% 8.9% 5.2% Deficit 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road (-^b ut) 480,000 Passenger miles per mile of road (about) 70,000 Miles yards and sidings 48 See page 159. 78 THE EARNING POWER CLEVELAND, CINCINNATL CHICAGO & ST. LOUIS RY. AVER. MILES YEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 1,838 1896-7 1,838 1897-8 1,838 1898-9 1,838 1899-0 1,891 1900-1 1,891 813,704,535 13,117,111 14,320,094 14,719,363 16,806,851 17,877,489 JS74,115 328,307 481,890 1,223,690 2,273,982 2,332,542 STOCK OUTSTANDING January 1, 1902. June 30, 1901. Common £27,987,835 Fixed Interest .$57,162,730 Preferred (5%) 10,000,000 CAPITALIZATION. TOTAL PER MILE stock $37 987 835 $20,088 30,088 57,162,730 Total 95,150,565 50,176 The "Big Four" paid in 1900-1 $231,907 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 1,891. TOTAL Gross Earnings $17,877,489 Operating Expenses 12,142,693 Net Earnings 5,734,796 Miscellaneous Receipts 127,654 Total Net Income 5,862,450 Fixed Charges 3,532,540 Surplus 2,332,542 OPERATING EXPENSES. TOTAL Maintenance of Way $2,263,379 Maintenance of Equipment 2,589,564 Conducting Transportation 6,930,663 General Expenses 369,086 Ratio of operating expenses to gross earnings, 59.3 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 l'99-O 1 98-9 For Maintenance Expenses 26.9% 26.0% 25.7% For Conducting Transportation and General Expenses 40.4% 39.7% 42.5% For Fixed Charges 19.6% 20.4% 23.4% For Surplus 13.1% 13.9% 8.4% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 1,009,564 Passenger miles per mile of road 137,101 Miles second and additional main track 80 Miles yards and sidings 817 See page 159. PER MILE $9,454 6,421 3,033 67 3,100 1,866 1,234 PER MILE $1,197 1,369 3,665 189 1896-7 24.7% 45.3% 27.2% 2.8% OF RAILROADS. 79 CLEVELAND, LORAIN & WHEELING RY. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 192 $1,586,918 S145,479 1896-7 192 1,206,151 Deficit, 33,503 1897-8 192 1,501,431 144,793 1898-9 192 1,621,981 194,515 1899-0 192 2,092,574 342,200 1900-1 192 2,063,653 310,469 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 88,000,000 Fixed Interest $6,943,000 Preferred 1,5%) 5,000,000 Equipment 98,8"i2 CAPITALIZATION. TOTAL PER MILE Stock $13,000,000 $67,708 Bonds 7,041,852 36,676 Total 20,041,852 104,384 The Cleveland, Lorain & Wheeling paid in 1900-1 $31,616 in rentals (included in Fixed Charges below) . INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 192. TOTAL PER MILE Gross Earnings $2,063,653 $10,748 Operating Expenses 1,321,994 6,885 Net Earnings 741,659 3,863 Total Net Income 741,659 3,863 Fixed Charges 431,190 2,246 Surplus 310,469 1,617 OPERATING EXPENSES. TOTAL PER MILE Maintenance of w.ny $404,820 $2,108 Maintenance of Equipment 242,430 1,262 Conducting Transportation 596,163 3,105 General Expenses 78,582 409 Ratio of operating expenses to gross earnings, 64 1 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 31 . 3% 30 . 5% 25 . 7% 24 . 6% 23 . 3% For Conducting Transportation and General Expenses 32.6% 36.7% 41.2% 42.8% 41.5% For Fixed Charges 20.9% 16.2% 21.1% 22.9% 29.0% ForSurplus 15.2% 16.6% 12 0% 9.7% 6.2% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 19j0-1. Ton miles per mile of road 1,800,266 Passenger mUes per mile of road 68,176 Miles yards and sidings 116 See page 160. 8o THE EARNING POWER DETROIT & MACKINAC RY. AVEB. MILES YEAR OPERATED GROSS EARNINGS SURPLUS 1896-7 285 $406,682 Deficit, 821,974 1897-S 294 481,468 50,655 1898-9 312 601,441 72,630 1899-0 325 833,619 131,464 1900-1 321 865,747 114,444 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 82,000,000 Fixed Interest $3,050,000 Preferred 165,000 CAPITALIZATION. TOTAL PER MILE Stock 82,165,000 $6,744 Bonds 3,050,000 9,501 Total 5,215,000 16,245 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 321. TOTAL Gross Earnings $865,747 Operating Expenses 590,384 Net Earnings 275,363 Fixed Cliarges 160,919 Surplus 114,444 OPERATING EXPENSES. TOTAL Maintenance of Way $243,157 Maintenance of Equipment 73,676 Conducting Transportation 252,837 General Expenses 20,715 Ratio of operating expenses to gross earnings, 68.1 per cent. PER inLE $2,697 1,839 858 501 357 PER MILE $757 229 787 65 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses .... 36 . 5% 36 . 9% 32 . 8% 27 . 5% 35 . 4% For Conducting Transportation and General Expenses 31.1% 29.6% 33.2% 35.7% 39.4% For Fixed Cliarges 18.5% 17.9% 21.7% 26.2% 30.3% For Surplus 13.9% 15.6% 12.3% 10.6% Deficit 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 175,537 Passenger miles per mile of road 27,728 See page 160. OF RAILROADS. EVANSVILLE & TERRE HAUTE R. R. AVER. MILES YEAR OPERATED QKOSS EARNINl 1895-6 168 81,122,797 1896-7 167 1,003,430 1897-8 168 1,218,132 1868-9 168 1,259 435 1899-0 162 1,392,760 1900-1 162 1,393,943 Deficit, SURPLUS J25,639 27,185 51,336 151 ,077 196,632 145,749 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $3,996,683 Fixed Interest 86,078,000 Preferred (5%) 1,282,417 CAPITALIZATION, TOTAL PER MILE Stock $5,279,100 $32,587 Bonds 6,078,000 37,518 Total 11,357,100 70,105 The Evansville & Terre Haute guarantees $2,500,000 Evansville & Indian- apolis bonds. INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 162. TOTAL PER MILE Gross Earnings $1,393,943 $8,604 Operating Expenses 792,303 4,890 Net Earnings 601,640 3,714 Miscellaneous Receipts 45,917 283 Total Net Income 647,557 3,997 Fixed Charges 501,808 3,097 Surplus 145,749 900 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $164,244 $1,013 Maintenance of Equipment 210,550 1,300 Conducting Transportation 367,077 2,265 General Expenses 50,432 312 Ratio of operating expenses to gross earnings, 56.8 per cent. Fixed Charges above include $86,605 account deficit of the Evansville & Indianapolis Railroad. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 26.0% 27.1% 25.1% 28.0% 21.8% For Conducting Transportation and General Expenses 28.9% 26.7% 28.0% 30.8% 32.5% For Fixed Charges 34.8% 32.3% 35.1% 37.1% 48.2% ForSurplus 10.3% 13.9% 11.8% 4.1% Deficit 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 624,672 Passenger miles per mile of road 81,153 Miles yards and sidings 58 See page 160. 82 THE EARNING PdWER GRAND RAPIDS & INDIANA RY. AVIOR. MILES YEAR OPERATED GROSS EARNINGS 1896 582 $2,460,026 1897 590 , 2,542,087 1898 692 2,784,845 1899 588 3,146,165 1900 581 3,376,182 Gkand Rapids & Indiana Proper. Grand Rapids & Indiana Proper. stock outstanding bonds outstanding January 1, 1902. December 31, 1901. Common $5,780,700 Fixed Interest $9,487,000 CAPITALIZATION. TOTAL PER MILE Stock $5,780,700 $9,949 Bonds 9,487,000 16,328 Total 15,267,700 26,277 INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. (All Lines.) Average miles operated, 681. TOTAL PER MILE Gross Earnings $3,376,182 $5,806 Operating Expenses 2,501,933 4,306 Net Earnings 873,249 1,499 Fixed Charges 684,717 1,178 Surplus 188,532 321 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $632,044 $1,088 Maintenance of Equipment 480,861 827 Conducting Transportation 1,299,574 2,237 General Expenses 89,454 154 Ratio of operating expenses to gross earnings, 74.1 per cent. APPROPRIATION OF GROSS INCOME. 1900 For Maintenance Expenses 33.0% For Conducting Transportation and General Kxpenses 41.1% For Fixed Charges 20.2% For Surplus 5.7% 100.0% YEAR 1900. Ton miles per mile of road 399,603 Passenger miles per mile of road 91,792 Miles second and additional main track ^ 9 Miles yards and sidinga ' 166 See page 161. OF RAILROADS. 83 HOCKING VALLEY RY. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1899-0 1900-1 346 347 $4,417,267 4,653,258 $1,168,549 1,354,177 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. . June 30, 1901. Common $10,421,625 Fixed Interest $15,722,000 Preferred (4%) 14,000,000 Equipment 1,634,290 CAPITALIZATION. TOTAL PER MILE Stock $24,421,625 $70,379 Bonds 17,356,290 50,018 Total 41,777,915 120,397 The Hocking Valley paid in 1900-1 $24,428 in rentals and account deficits of Subsidiary Co.'s $81,645. These payments are included in Fixed Charges below. INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 347. TOTAL PER MILE Gross Earnings $4,653,258 $13,409 Operating Expenses 2,655,503 7,652 Net Earnings 1,997,755 5,767 Miscellaneous Receipts 474,084 1,366 Total Net Income 2,471,839 7,123 Fixed Charges 1,117,662 3,220 Surplus 1,354,177 3,903 OPERATING EXPENSES. TOTAL Maintenance of Way $516,802 Maintenance of Equipment 747,463 Conducting Transportation 1,284,292 General Expenses 106,946 Ratio of operating expenses to gross earnings, 57.0 per cent. PER MILE $1,489 2,154 3,701 308 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 24 . 6% 22 . 1% For Conducting Transportation and General Expenses . . 27 . 1 % 30 . 7% For Fixed Charges 21.8% 21.6% For Surplus , 26.5% 25.6% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 2,437,218 Passenger miles per mile of road 93,103 Miles second and additional main track 25 Miles yards and sidings 189 See page 161. 84 THE EARNING POWER ILLINOIS CENTRAL RY. TEAR 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED 3,067 3,130 3,775 3,671 3,845 4,215 GROSS E-VRNINGS $22,002,842 22,110,938 27:317,820 28,114,690 32,611,967 36,900,460 »3,08S,725 2,778,553 4,388,655 4,331,501 5,757,274 6,967,659 STOCK OTJT8TANDING Jariu-.ry 2, 1902. Common $79,200,000 Includes $19,200,000 issued at par in 1901. BONDS OUTSTANDING June 30, 1901. Fixed Interest $128,797,925 Leased Line Stock 10,000,000 Bonds outstanding include bonds of the C, St. L. & N. O. R. R. Co. and bonds of St. Louis Division. CAPITALIZATION. TOTAL Stock $79,200,000 Bonds 138,797,925 Total 217,997,925 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 4,215. TOTAL Gross Earnings $36,900,460 Operating Expenses 24,251,678 Net Earnings 12,648,782 Miscellaneous Receipts 2,505,183 Total Net Income 15,153,965 Fixed Charges 8,186,306 Surplus 6,967,659 OPERATING EXPENSES. TOTAL Maintenance of Way $5,860,818 Maintenance of Equipment 4,371,242 Conducting Transportation 13,222,859 General Expenses 796,759 Ratio of operating expenses to gross earnings, 65.7 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 PER MILE $18,790 32,929 51,719 PER MILE $8,754 5,753 3,001 S94 3,595 1,942 1,653 PER MILE $1,390 1,037 3,137 189 For Maintenance Expenses . . . . 25 . 9% For Conducting Transportation and General Expenses 35 . 5% For Fixed Charges 20.7% For Surplus 17,9% 26.3% 24.3% 24.9% 33.7% 26.3% 15.1% 34.6% 34.9% 26.5% 22.5% 16.6% 14.3% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track Miles yards and sidings See page 161. 952,808 88,711 338 1,333 OF RAILROADS. 8S INDIANA, ILLINOIS & IOWA BY. AVER. MILES TEAR OPERATED GBOBB EARNINOa BURFLUB 1895-8 158 8786,131 $125,715 1896-7 155 738,289 86,679 1897-8 190 820,384 140,600 1898-9 190 902,305 176,433 1899-0 208 1,226,150 261,795 1900-1 266 1,419,117 297,428 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 85,000,000 Fixed Interest 84,500,000 CAPITALIZATION. TOTAL PER MILE Stock $5,000,000 818,797 Bonds 4,600,000 16,954 Total 9,500,000 35,751 The Indiana, Illinois & Iowa paid in 1900-1 838,879 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 266. TOTAL PER MILE Gross Earnings $1,419,117 $5,335 Operating Expenses 859,835 3,233 Net Earnings 559,282 2,102 Miscellaneous Receipts 2,862 11 Total Net Income 562,144 2,113 Fixed Charges 264,716 995 Surplus 297,428 1,118 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way 8158,459 $596 Maintenance of Equipment 95,635 359 Conducting Transportation 552,277 2,076 General Expenses 63,164 199 Ratio of operating expenses to gross earnings, 60.6 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 17.8% 20.3% 16.5% 24.2% 26.4% For Conducting Transportation and General Expenses 42 . 5% 41.5% 46 . 5% 43 . 4% 47 . 3% For Fixed Charges 18.6% 16.8% 18.1% 17.2% 14.7% ForSurplus 21,1% 214% 18.9% 15.2% 11.6% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 692,932 Passenger miles per mile of road 24,160 Miles yards and sidings 79 See page 162. 86 THE EARNING POWER KANAWHA & MICHIGAN RY. AVER. MILES TEAR OPERATED GROSS EAHNIl 1896-7 172 8479,490 1897-8 172 558,343 1898-9 172 634,064 1899-0 172 769,069 1900-1 173 924,624 SURPLUS Deficit, $3,144 14,294 34,661 52,878 75,047 STOCK OUTSTANDING January 1, 1902. Common $10,000,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $2,469,000 Loan 160,000 Equipment 327,746 CAPITALIZATION. TOTAL Stock $10,000,000 Bonds 2,956,746 Total 12,956,746 PER MILE $57,803 17,091 74,894 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 173. TOTAL PER MILE Gross Earnings 5924,624 $5,344 Operating Expenses 697,324 4,030 Net Earnings 227,300 1,314 Miscellaneous Receipts 6,800 39 Total Net Income 234,100 1,353 Fixed Charges 159,053 919 Surplus 75,047 434 OPERATING EXPENSES. TOTAL Maintenance of Way $168,845 Maintenance of Equipment 146,680 Conducting Transportation 357,407 General Expenses 24,392 Ratio of operating expenses to gross earnings, 75.4 per cent. PER MILE $976 848 2,065 141 APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses . 33 . 9% For Conducting Transportation and General Expenses. . .40.9% For Fixed Charges 17.0% For Surplus 8.2% 1899-0 34.5% 41.6% 17.1% 6.8% 100.0% 100.0% YEAH 1900-1. Ton miles per mile of road 890,148 Passenger miles per mile or road 38,912 Miles yards and sidings 39 See page 163. OF RAILROADS. LAKE ERIE & WESTERN R.R. 87 TEAR 1897 1898 1899 1900 AVER. MILES OPERATED 725 725 725 725 GEOSH EARNINGS S3, 326, 587 3,353,162 3,787,301 4,284,780 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common $11,840,000 Fixed Interest 810,875,000 Preferred (6%) 11,840,000 CAPITALIZATION. TOTAL PER MILE Stock S23,680,000 832,662 Bonds 10,875,000 15,000 Total 34,555,000 47,662 Included in Lake Erie & Western's Fixed Charges below for 1900-1 is $100,000 for deficiency in interest on Northern Ohio bonds. INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 725. TOTAL Gross Earnings $4,284,780 Operating Expenses 2,737,793 Net Earnings 1,546,987 Fixed Charges 830,819 Surplus 716,168 OPERATING EXPENSES. TOTAL Maintenance of Way $807,453 Maintenance of Equipment 417,355 Conducting Transportation 1,328,440 General Expenses 184,545 Ratio of operating expenses to gross earnings, 63.9 per cent. PER MILE $5,910 3,776 2,134 1,146 988 PER MILE 81,113 575 1,832 255 APPROPRIATION OF GROSS INCOME. 1900 1899 For Maintenance Expenses 28 . 5% 22 . 6% For Conducting Transportation and General Expenses. . . .35.3% 35.4% For Fixed Charges 19.3% 22.3% For Surplus 16.9% 19.7% 100.0% 100.0% YEAR 1900. Ton miles per mile of road 660,843 Passenger miles per mile of road 72,110 Miles yards and sidings 199 Seepage 163. 88 THE EARNING POWER LAKE SHORE & MICHIGAN SOUTHERN RY. TEAR 1896 1897 1898 1899 1900 AVER. MILES OPERATED GHOS8 EARNINGS stmpLDa 1,440 1,437 1,413 1,413 1,411 $20,193,958 20,297,722 20,753,683 23,013,946 26,466,514 $3,022,400 3,745,259 4,023,225 5,057,261 6,658,431 STOCK OUTSTANDING January 1, 1902. Common $49,466,500 Guaranteed (10%) 533,500 BONDS OUTSTANDING December 31, 1900. Fixed Interest $50,725,000 CAPITALIZATION. TOTAL PER MILE Stock $50,000,000 $35,435 Bonds 50,725,000 36,949 Total 100,725,000 71,384 The Lake Shore paid in 1900 $923,247 in rentals, and $53,350, the dividends of 10 per cent, on the guaranteed stock. These payments are included in Fixed Charges below. INCOME ACCOUNT TEAR ENDING DECEMBER 31, 1900. Average miles operated, 1,411. TOTAL Gross Earnings $26,466,514 Operating Expenses 16,598,661 Net Earnings 9,867,853 Miscellaneous Receipts 749,621 Total Net Income 10,617,474 Fixed Charges 3,958,042 Surplus 6,658,431 OPERATING EXPENSES. TOTAL Maintenance of Way $3,089,831 Maintenance of Equipment 4,055,945 Conducting Transportation 9,090,305 General Expenses 362,679 Ratio of operating expenses to grcos earnings, 62.6 per cent. PER MILE $18,757 11,763 6,994 530 7,524 2,805 4,719 PER MILE $2,190 2,874 6,442 256 APPROPRIATION OF GROSS INCOME. 1900 1899 1898 For Maintenance Expenses 26 . 2% 26.2% 23 . 2% For Conducting Transportation and General Expenses 34 . 7% 38 . 3% 39 . 5% For Fixed Charges 14.6% 16.2% 18.2% For Surplus 24.6% 19.3% 19.1% 100.0% 100.0% 100.0% 1897 1896 22.4% 24.2% 39.7% 19.7% 18.2% 38.8% 22.2% 14.8% 100.0% 100.0% YEAR 1900. Ton miles per mile of road 2,566, 144 Passenger miles per mile of road 187,500 Miles second and additional main track 522 Miles yards and sidings 799 See page 163. OF RAILROADS. 89 MICHIGAN CENTRAL R.R. TEAR 1896 1897 1898 1899 1900 AVER. MILEB OPERATED 1,642 1,658 1,658 1,658 1,635 GROSS EARNINGS 813,821,614 13,697,239 14,046,149 15,504,062 16,730,131 BTJBPLTJ8 8777,910 794,922 824,253 839,765 840,666 STOCK OUTSTANDING January 1, 1902. Common $18,738,000 BONDS OUTSTANDING December 31, 1900. Fixed Interest S41,987,000 Includes Canada Southern, leased line and guaranteed bonds. CAPITALIZATION. TOTAL PER MILE Stock $18,738,000 $11,460 Bonds 41,987,000 25,680 Total 60,725,000 37,140 The Michigan Central paid in 1900, in addition to interest on above bonds $485,162 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING DECEMBER 31, 1900. Average miles operated, 1,635. TOTAL PER MILE Gross Earnings $16,730,131 $10,232 Operating Expenses 12,762,285 7,805 Net Earnings 3,967,846 2.427 Miscellaneous Receipts 45.095 27 Total Net Income 4,012,941 2.454 Fixed Charges 3,172,275 1,940 Surplus 840,666 514 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $2,643,617 $1,616 Maintenance of Equipment 2,406.880 1,472 Conducting Transportation 7,368,609 4,506 General Expenses 343, 178 209 Ratio of operating expenses to gross earnings, 76.3 per cent. 1897 25.0% 1896 25.0% 47.0% 47.5% 20.0% 21.7% 8.0% 6.8% APPROPRIATION OF GROSS INCOME. 1900 1899 1898 For Maintenance Expenses .... 30 . 1 % 28 . 9% 24 . 8% For Conducting Transportation and General Expenses 45 . 9% 45 . 5% 47 . 1 % For Fixed Charges 18.9% 20. 1% 22. 1% ForSurplus 5.1% 5.5% 6.0% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900. Ton miles per mile of road 1,226,974 Passenger miles per mile of road 108,459 Miles second and additional main track 262 Miles yards and sidings 969 See page 164. 90 THE EARNING POWER NEW YORK, CHICAGO & ST. LOUIS RY. TEAR 1896 1897 1898 1899 1900 AVER. MILES OPERATED GROSS EARNINGS SUHPLUS 523 523 523 523 523 S5,587,766 5,815,217 6,391,421 6,919,985 7,023,359 $3,086 107,655 58,463 328,644 476,724 STOCK OTTTSTANDINQ BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common $14,000,000 Fixed Interest $19,425,000 Preferred— 1st (5%) 5,000,000 Equipment 39,167 —2d (6%) 11,000,000 CAPITAIilZATION. TOTAL PER MILE Stock $30,000,000 $57,361 Bonds 19,464,167 37,216 Total 49,464,167 94,577 The "Nickel Plate" paid in 1900 $96,231 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 523. TOTAL PER MILE Gross Earnings $7,023,359 $13,428 Operating Expei oes 5,365,548 10,259 Net Earnings 1,657,811 3,169 Miscellaneous Receipts 26,722 51 Total Net Income 1,684,633 3,220 Fixed Charges 1,207,809 2,309 Surplus 476,724 911 OPERATING EXPENSES (ESTIMATED). TOTAL PER MILE Maintenance of Way $866,315 $1,656 Maintenance of Equipment 657,787 1,255 Conducting Transportation 3,719,836 7,113 General Expenses 121,610 233 Ratio of operating expenses to gross earnings, 76.4 per cent. Fixed Charges above include $83,000 account payment of principal of equipment trust certificates. APPROPRIATION OF GROSS INCOME. 1900 For Maintenance Expenses 21 . 6% For Conducting Transportation and General Expenses 54 . 5% For Fixed Charges 17 . 0% For Surplus 6.9% 100.0% TEAR 1900. Ton miles per mile of road 2,313,905 Passenger miles per mile of road 127,243 Miles second and additional main track 15 Miles yards and sidings 197 See page 165. OF RAILROADS. 91 PEORIA & EASTERN RY. AVEB. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 352 Jl, 902,325 816,280 1896-7 352 1,631,103 Deficit, 98,773 1897-8 352 1,883,107 15,162 1898-9 352 1,903,218 12,470 1899-0 352 2,356,416 345,656 1900-1 352 2,488,304 417,875 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 810,000,000 Fixed Interest S9,985,200 Income Bonds (4%) 4,000,000 CAPITALIZATION. TOTAL PER MILE Stock 814,000,000 839,772 Bonds 9,985,200 28,367 Total 23,985,200 68,139 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 352. TOTAL Gross Earnings $2,488,304 Operating Expenses 1,561,469 Net Earnings 926,835 Total Net Income 926,835 Fixed Charges 508,959 Surplus 417,875 OPERATING EXPENSES. TOTAL Maintenance of Way $379,850 Maintenance of Equipment 419,475 Conducting Transportation ( «g2 144 General Expenses ( Ratio of operating expenses to gross earnings, 62.7 per cent. PER MILE $7,069 4,435 2,634 2,634 1,445 1,189 PER MILE $1,079 1,191 2,165 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 32 . 1 % 32 . 6% 36 . 6% 34 . 8% 33.6% For Conducting Transportation and General Expenses 30.6% 30.5% 35.1% 36.5% 40.2% For Fixed Charges 20.4% 22.1% 27.5% 27.7% 32.1% For Surplus 16.9% 14.8% .8% 1.0% Deficit 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Miles yards and sidings. See page 165. 117 92 THE EARNING POWER PERE MARQUETTE R.R. STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common S16,000,000 Fixed Interest »26,793,071 Preferred (4%) 12,000,000 CAPITALIZATION. TOTAL PER MILE Stock J28,000,000 $15,376 Bonds 26,793,071 14,713 Total .• 54,793,071 30,089 INCOME ACCOUNT YEAH ENDING DECEMBER 31, 1900. Average miles operated, 1,821. TOTAL Gross Earnings $8,296,111 Operating Expenses 6,068,701 Net Earnings 2,227,410 Fixed Charges 1,581,221 Surplus 646,189 OPERATING EXPENSES. TOTAL Maintenance of Way $1,360,227 Maintenance of Equipment 1,048,127 Conducting Transportation 3,457,443 General Expenses 202,904 Ratio of operating expenses to gross earnings, 73.1 per cent. $4,555 3,332 1,223 868 355 $747 575 1,897 112 APPROPRIATION OF GROSS INCOME. 1900 For Maintenance Expenses 29.0% For Conducting Transportation and General Expenses 44. 1% For Fixed Charges 19.0% For Surplus 7.9% 100.0% TEAR 1900. Ton miles per mile of road 351,089 Passenger miles per mile of road 58,078 Miles yards and sidings 530 See page 166. OF RAILROADS. 93 PITTSBURGH, CINCINNATI, CHICAGO & ST. LOUIS RY. YEAR 1896 1S97 1898 1899 1900 AVER. MILEB OPERATED 1,403 1,403 1,403 1,403 1,407 GROSS EARNINGS $16,738,812 17,683,947 18,942,651 21,196,817 22,264,924 STOCK OUTSTANDING January 1, 1902. Common $24,740,857 Preferred 22,697,341 BONDS OUTSTANDING December 31, 1900. Fixed Interest $46,715,000 CAPITALIZATION. TOTAL Stock $47,438,198 Bonds 46,715,000 Total 94,153,198 PER MILE $33,687 33,201 66,888 paid in 1900 $1,105,961 in rentals (included in Fixed The "Pan Handle'' Charges below). INCOME ACCOUNT TEAR ENDING DECEMBER 31, 1900. (Includes all lines directly operated by the Pittsburgh, Cincinnati, Chicago & St. Louis Ry. Co.) Average miles operated, 1,407. TOTAL Gross Earnings $22,264,924 Operating Expenses 15,664,844 Net Earnings 6,600,080 Miscellaneous Receipts 241,170 Total Net Income 6,841,250 Fixed Charges 4,458,899 Surplus 2,382,351 OPERATING EXPENSES. TOTAL Maintenance of Way $3,154,658 Maintenance of Equipment "... 3,943,726 (Conducting Transportation 8,193,445 General Expenses 373,014 Ratio of operating expenses to gross earnings, 70.3 per cent. PER MILE $15,824 11,133 4,691 169 4,862 3,168 1,694 PER MILE $2,242 2,803 5,823 265 APPROPRIATION OF GROSS INCOME. 1900 1899 For Maintenance Expenses 31 . 5% 28 . 9% For Conducting Transportation and General Expenses .... 38 . 7% 38 . 7% For Fixed Charges 19.8% 20.7% For Surplus 10.0% 11.7% 100.0% 100.0% TEAR 1900. Ton miles per mile of road 1,727,714 Passenger miles per mile of road 173,565 Miles second and additional main track 317 Miles yards and sidings 705 See page 166. 94 THE EARNING POWER TERRE HAUTE & LOGANSPORT RY. TEAR 1899 1900 AVER. MILES OPERATED QR0B3 EABNIN08 BUHPLU8 182 182 J766,564 817,467 t65,122 70.861 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. December 31, 1900. Common 82,000,000 Fixed Interest $1,742,500 CAPITALIZATION. TOTAL PER MILE Stock $2,000,000 $10,989 Bonds 1,742,500 9,574 Total 3,742,500 20,563 INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 182. TOTAL PER MILE Gross Earnings $817,457 $4,485 Operating Expenses 619,545 3,401 Net Earnings 197,912 1,084 Fixed Cliarges 127.051 698 Surplus 70,861 388 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $110,036 $604 Maintenance of Equipment 121,424 667 Conducting Transportation 369,063 2,026 General Expenses 19,022 104 Ratio of operating expenses to gross earnings, 75.8 per cent. APPROPRIATION OF GROSS INCOME. 1900 1899 For Maintenance Expenses 28 . 4% 27 . 5% For Conducting Transportation and General Expenses. . . .47.4% 47.5% For Fixed Charges 15.5% 16.4% For Surplus 8.7% 8.6% 100.0% 100.0% TEAR 1900. Ton miles per mile of road 562,316 Passenger miles per mile of road 49,151 Miles yards and sidings 36 See page 167. OF RAILROADS. 95 TOLEDO & OHIO CENTRAL RY. AVER. MILES YEAB OPERATED GROSS EARNINGS StTRPLUS 1895-6 371 11,944.503 8157,815 1896-7 371 1,750,979 6,438 1897-8 371 1,779,614 79.637 1898-9 371 1.897.867 128,312 1899-0 371 2.368,971 361,556 1900-1 390 2,571,722 210,356 STOCK OUTSTANDING January 1, 1902. CJommon $6,500,000 Preferred (5%) 3,708,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $8,500,000 Special Loan 711,880 Equipment 1,091,249 CAPITALIZATION. TOTAL PER MILE Stock $10,208,000 $26,174 Bonds 10,303,129 26,418 Total 20,511,129 62,592 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 390, TOTAL PER MILE Gross Earnings $2,571,722 $6,594 Operating Expenses 1,851,140 4,746 Net Earnings 720,582 1,848 Miscellaneous Receipts 7,424 19 Total Net Income 728,006 1,867 Fixed Charges 517,651 1,327 Surplus 210,356 540 OPERATING EXPENSES. TOTAL Maintenance of Way $363,032 Maintenance of Equipment 465,963 Conducting Transportation 957,835 General Expenses 64,310 Ratio of operating expenses to gross earnings, 71.9 per cent. PER MILE $930 1,194 2,456 165 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 32 , 1 % 26 . 8% 24 . 7% 24 . 4% 27 . 0% For Conducting Transportation and General Expenses 39 . 4% 37 . 6% 42 . 6% 45 . 1 % 46 . 1 % For Fixed Charges 20.0% 20.3% 25,9% 25.9% 26.5% ForSurplus 8.5% 15.3% 6.8% 4.6% .4% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 1,117,594 Passenger miles per mile of road 57,458 Miles yards and sidings 144 See page 167. 96 THE EARNING POWER TOLEDO, PEORIA & WESTERN RY. AVER. MILES YEAH OPERATED GROSS EARNINGS SURPLCa 1895-6 247 81,010,270 $9,0S9 1896-7 247 888,881 DeHcit 37,197 1897-8 247 982,650 5,567 1898-9 247 976,658 350 1899-0 247 1,077,904 746 1900-1 247 1,157,079 1,263 STOCK OUTSTANDING January 1, 1902. Common S4,076,900 BONDS OUTSTANDING June 30, 1901. Fixed Interest $4,895,000 Scrip 220,275 Equipment 468,902 CAPITALIZATION. TOTAL Stock 84,076,900 Bonds 6,684,177 Total 9,661,077 PF.B MILE $16,506 22,608 39,114 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 247. TOTAL PER MILE Gross Earnings $1,157,079 $4,684 Operating Expenses 878,635 3,557 Net Earnings 278,444 1,127 Fixed Charges 277,181 1,122 Surplus 1,263 6 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $256,488 $1,038 Maintenance of Equipment 142,924 578 Conducting Transportation 448,559 1,816 General Expenses 30,664 124 Ratio of operating expenses to gross earnings, 75 . 9 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 34 . 5% 32 . 7% 28 . 6% 27 . 1 % 25 . 8% For Conducting Transportation and General Expenses 41.2% 42.0% 43.6% 45.3% 48.1% For Fixed Charges 23.9% 25.1% 27.6% 27.2% 30.1% For Surplus 4% .2% .3% .4% Deficit 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 234.016 Passenger miles per mile of road 51,404 Miles yards and sidings 38 See page 167, OF railroads; TOLEDO, ST. LOUIS & WESTERN RY. 97 YEAB 1899-0 1900-1 AVEB. MILEB OPERATED 451 451 OBOSS EABHINOS Jl,940,378 2,490,566 STOCK OtITBTANDINQ BONDS OUTBTANDINO January 1, 1902. June 30, 1901. Common $10,000,000 Fixed Interest $15,500,000 Preferred (4%) 10,000,000 CAPITALIZATION. TOTAL PEB MILE Stock $20,000,000 844,390 Bonda 16,500,000 34,479 Total 35,500,000 78,869 INCOME ACCOUNT TEAS ENDING JUNE 30, 1901. Average miles operated, 451. TOTAL Gross Earnings $2,490,566 Operating Expenses 1,799,951 Net Earnings 690,615 Miscellaneous Receipts 6,341 Total Net Income 696,965 Fixed Charges 614,400 Surplus 82,665 OPEBATINQ EXPENSES. TOTAL Maintenance of Way $361,933 Maintenance of Equipment 320,488 Conducting Transportation 1,040,000 General Expenses 77,630 Ratio of operating expenses to gross earnings, 72 2 per cent. PER MILE 85,625 3,993 1,632 13 1,545 1,362 183 8803 710 2,306 172 APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses 27 . 3% For Conducting Transportation and General Expenses 44.7% For Fixed Charges 24.5% For Surplus 3.5% 100.0% TEAR 1900-1. Ton miles per mile of road 773,934 Passenger miles per mile of road 51,825 Miles yards and sidings 107 See page 167. 98 THE EARNING POWER SOUTHERN INDIANA RY. TEAR 1899-0 1900-1 AVER. MILES OPERATED 14S 145 GROSS EARNINGS $363,895 439,828 STOCK OUTSTANDING Januiry 1, 1902. Common 83,000,000 Preferred 500,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest (4%) $2,545,000 Equipment 307,906 CAPITALIZATION. TOTAL PER MILE Stock 83,500,000 $24,134 Bonds 2,852,906 19,661 Total 6,352,906 43,795 INCOME ACCOUNT YEAR ENDING JUNE 30, x901. Average miles operated, 145. TOTAL Gross Earnings $439,828 Operating Expenses 294,087 Net Earnings 145,741 Fixed Charges 112,411 Surplus 33,330 OPERATING EXPENSES. TOTAL Maintenance of Way $57,491 Maintenance of Equipment 59,821 Conducting Transportation 141,593 General Expenses 35, 183 Rates of operating expenses to gross earnings, 66.8 per cent. PER MILE $3,033 2,028 1,005 775 230 $396 412 976 243 APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses 26. 6% For Conducting Transportation and General Expenses . . 40.1% For Fixed Charges 25.5% For Surplus 7.8% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 135,953 Passenger miles per mile of road 30,162 Miles yards and sidings 32 See page 168. OF RAILROADS. 99 WABASH R. R. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 1,936 812,807,143 $25,557 1896-7 1,936 11,526,787 Deficit, 1,676 1897-8 2,061 13,207,862 375,350 1898-9 2,278 14,393,974 131,582 1899-0 2,340 16,440,990 643,764 1900-1 2,360 17,554,465 847,262 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $28,000,000 Fixed Interest $55,081,000 Preferred (7%) 24,000,000 Equipment 645,861 Income Bonds (6%) 30,000,000 CAPITALIZATION. TOTAL PER MILE Income Bonds and Stock $82,000,000 $34,745 Bonds 55,726,861 23,613 Total 137,726,861 63,358 The Wabash paid in 1900-1 over $900,000 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 2.360. TOTAL Gross Earnings $17,554,465 Operating Expenses 12,752,045 Net Earnings 4,802,420 Miscellaneous Receipts 343,836 Total Net Income 5,146,256 Fixed Charges 4,298,994 Svu-plus 847,262 OPERATING EXPENSES. TOTAL Maintenance of Waj; $2,465,710 Maintenance of Equipment 2,517,643 Conducting Transportation 7,484,484 General Expenses 284,208 Ratio of operating expenses to gross earnings, 72.6 per cent. Fixed Charges above include $53,085 paid account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses.. . .27.8% 26.3% 24.2% For Conducting Transportation and General Expenses 43 . 4% 44 . 8% 46 . 8% For Fixed Charges 24.0% 24.9% 27.9% For Surplus 4.8% 4.0% 1.1% PER MILE $7,438 5,403 2,035 145 2,180 1,821 359 PER MILE $1,044 1,066 3,171 121 1897-8 23.8% 45.0% 28.2% 3.0% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 838,539 Passenger miles per mile of road 111,978 Miles side and double track 886 See page 168. 100 THE EARNING POWER WHEELING & LAKE ERIE R. R. AVER. MILES TEAH OPERATED GROSS EARNINGS SDHPLrS 1899-0 393 $2,670,025 $206,237 1900-1 442 2,954,105 146,950 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $20,000,000 Fixed Interest $13,267,000 Preferred— 1st (4%) 4,135,800 lucome 921,129 —2d (4%) 11,567,900 CAPITALIZATION. TOTAL PER MILE Stock $35,703,700 $80,777 Bonds 14,188,129 32,099 Total 49,891,829 112,877 The Wheeling & Lake Erie paid in 1900-1 $99,624 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 442. TOTAL Gross Earnings $2,954,105 Operating Expenses 2,076,514 Net Earmngs 877,691 Miscellaneous Receipts 3,085 Total Net Income 880,676 Fixed Charges 733,726 Surplus 146,950 OPERATING EXPENSES. TOTAL Maintenance of Way $335,281 Maintenance of Equipment 393,181 Conducting Transportation 1,237,603 General Expenses 110,449 Ratio of operating expenses to gross earnings, 70.3 per cent. FEB MILE $6,683 4,698 1,985 7 1,992 1,660 332 $758 8S9 2,800 249 APPROPRIATION OP GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 24.6% ^■^% For Conducting Transportation and General Expenses. . 45.5% 42.5% For Fixed Charges 24.8% 25.2% For Surplus 5.1% 7.7% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 963,094 Passenger miles per mile of road 45-651 Miles second and additional main track 4 Miles yards and sidings 193 See page 169. OF RAILROADS. lOI WISCONSIN CENTRAL RY. TEAR 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILEB OPERATED GROSS EARNINGS 934 934 939 945 955 84,179,971 4,939,725 5,118,019 5,637,416 5,324,274 $492,915 246,117 STOCK OtFTSTANDINQ BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $17,500,000 Fixed Interest $27,634,500 Preferred (4%) 12,500,000 Equipment 122,938 CAPITALIZATION. TOTAL PER MILE Stock $30,000,000 $31,413 Bonds 27,757,438 29,171 Total 57,757,438 60,684 The Wisconsin Central paid in 1900-1 $332,829 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDtNQ JUNE 30, 1901. Average miles operated, 955. TOTAL Gross Earnings $5 324,274 Operating Expenses 3,466,463 Net Earnings 1,857,811 Miscellaneous Receipts 20,919 Total Net Income 1,878,730 Fixed Charges 1,632,613 Surplus 246,117 OPERATING EXPENSES. TOTAL Maintenance of Way $630,100 Maintenance of Equipment 478,313 Conducting Transportation 2,112,734 General Expenses 245,316 Ratio of operating expenses to gross earnings, 65 . 1 per cent. PER MILE 85,575 3,629 1,946 21 1,967 1,709 258 ER MILE $659 600 2,212 257 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 20 . 7% 22 . 2% For Conducting Transportation and General Expenses . . 44.1% 41.1% For Fixed Charges 30.5% 27.8% For Surplus 4.7% 8.9% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road -.- ;- r^ .- 647,505 Passenger miles per mile of road 66,683 Miles yards and sidings -. .^ 223 See page 169, 102 THE EARNING POWER ATLANTA & WEST POINT R.R. AVEK. MILES YEAR OPERATED GR0B3 EARNINGB UUKFLUS 1895-6 86 8534,115 $128,483 1896-7 86 554,447 140,209 1897-8 86 575,259 148,703 1898-9 86 606,664 1)0.568 1899-0 86 702,472 171,184 1900-1 86 740,689 140,045 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 81,232,200 Debentures 81,232,200 CAPITALIZATION . TOTAL PER MILE Stock $1,232,200 $14,327 Bonds 1,232.200 14,327 Total 2,464,400 28,654 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 86. TOTAL Gross Earnings $740,689 Operating Expenses 485,679 Net Earnings 255,010 Miscellaneous Receipts 3*832 Total Net Income 258,842 Fixed Charges 118,797 Surplus 140,045 OPERATING EXPENSES. TOTAL Maintenance of Way $97,619 Maintenance of Equipment 133, 368 Conducting Transportation 217,012 General Expenses 37,680 Ratio of operating expenses to gross earnings, 65.6 per cent. PER MILE $8,612 5,647 2,965 44 3,009 1,381 1,628 PER MILE $1,135 1,550 2,523 438 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 31.0% 25 . 8% 24 . 8% 25 . 6% 24 . 7% For Conducting Transportation and General Expenses ....34.2% 35.0% 35.1% 33.0% 34.2% For Fixed Charges 15.9% 15.0% 15.5% 16.1% 16.3% .For Surplus 18.!/% 24.2% 24.6% 25.3% 24.8% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 358,484 Passenger miles per mile of road 131,796 Miles second and additional main track 2 Miles sidings 15 See page 170. OF RAILROADS. ATLANTA, KNOXVILLE & NORTHERN RYi 103 TEAB 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED 228 228 228 228 OROSS EARNINGS $328,092 352,952 418,354 482,595 STOCK 0T3TSTANDING BONDS OUTSTANDING June 30, 1901. June 30, 1901. Common $3,000,000 Fixed Interest $1,000,000 Income Bonds 1,600,000 Certificates of Indebted- ness 117,901 CAPITALIZATION. TOTAL PER MILE Income Bonds and Stock. $4,500,000 $19,737 Bonds 1,117,901 4,903 Total 5,617.901 24,640 INCOME ACCOUNT YEAH ENDING JUNE 30, 1901. Average miles operated, 228. TOTAL Gross Earnings $482,595 Operating Expenses 331,838 Net Earnings 160,757 Fixed Charges 85,903 Surplus 64,854 OPERATING EXPENSES. TOTAL Maintenance of Way $85,582 Maintenance of Equipment 64,210 Conducting Transportation 151,336 General Expenses 30,711 Ratio of operating expenses to gross earnings, 68.7 per cent. PER MILE $2,116 1,455 661 376 285 $375 281 663 135 APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses 31 . 0% For Conducting Transportation and General Expenses 37 . 7% For Fixed Charges 17 , 7% For Surplus 13.6% 100.0% TEAR 1900-1. Miles yards and sidings 21 See page 170. I04 THE EARNING POWER ATLANTIC COAST LINE R. R. TEAR AVER. MILES OPERATED GROSS EARNINGS srrapLDS 1899-0 1900-1 1,759 1,756 87,586,746 7,916,099 J2, 152,406 1,755,980 STOCK OUTSTANDING January 1, 1902. Common $15,890,200 Preferred (5%) 18,850,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $24,526,500 Including $5,880,000 certificates of indebtedness, on which interest is paid if earned. CAPITALIZATION. TOTAL PER MILE Stock $34,740,200 $19,783 Bonds 24,526,500 13,967 Total 59,266,700 33,750 The Atlantic Coast Line paid in 1900-1 $37,276 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 1,756. TOTAL PER MILE. Gross Earnings $7,915,099 $4,507 Operating Expenses 4,644,829 2,645 Net Earnings 3,270,270 1,862 Miscellaneous Receipts 62,916 36 Total Net Income 3,333,186 1,898 Fixed Charges 1,577,206 898 Surplus 1,755,980 1,000 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Waj; $1,087,005 $619 Maintenance of Equipment 1,069,067 60S Conducting Transportation 2,289,832 1,304 General Expenses 198,925 113_ Ratio of operating expenses to gross earnings, 58.6 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 27 . 0% 26 . 9% For Conducting Transportation and General Expenses. .31 . 1% 28.8% For Fixed Charges 19.7% *16.2% For Surplus 22.27„ 28.1% 100.0% 100.0% *In 1899-0 full interest was not paid on the certificates of indebtedness. YEAR 1900-1. Ton miles per mile of road 213,685 Passenger miles per mile of road 39,049 Miles yards and sidings 272 See page 170. OF RAILROADS. 105 CENTRAL OF GEORGIA RY. YEAK 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED 1,456 1,491 1.524 1,524 1,539 1,678 GROSS EARNINGS SUBPLCa «5,429,082 5,280,696 5,507,070 5,767,345 6,086,263 6,920,715 $315,963 73,143 58,889 130,96' 201,35 BONDS OUTSTANDING June 30, 1901. Fixed Interest .$33,646,000 STOCK OUTSTANDING January, 1, 1901. Common $5,000,000 Income Bonds — 1st (5%) . . 4,000,000 " —2d (5%).. 7,000,000 " t' —3d (5%).. 4,000,000 CAPITALIZATION. TOTAL PER MILE Stock $20,000,000 $11,919 Bonds 33,646,000 20,051 Total ..., 53,646,000 31,970 The Central of Georgia paid in 1900-1 $347,902 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average mUes operated, 1,678. TOTAL Gross Earnings $6,920,715 Operating Expenses 4,778,148 Net Earnings 2,142,657 Miscellaneous Receipts 187,359 Total Net Income 2,329,926 Fixed Charges 2,128,575 Surplus 201,352 OPERATING EXPENSES. TOTAL Maintenance of Way $1,242,231 Maintenance of Equipment 831,796 Conducting Transportation 2,443,462 General Expenses 260,659 Ratio of operating expenses to gross earnings, 69.0 per cent. PER MILS $4,124 2,846 1,278 110 1,388 1,270 118 PER MILE $740 495 1,456 155 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 29.1% 25. 4% For Conducting Transportation and Gen- eral Expenses 38.0% 37.0% For Fixed Charges 30.0% 34.6% For Surplus 2.9% 3.0% 1898-9 24.0% 38.7% 36.1% 1.2% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 260,468 Passenger miles per mile of road 42,001 Miles yards and sidings 351 See page 171. io6 THE EARNING POWER CHESAPEAKE & OHIO RY. AVER. MILES YEAH OPERATED GROSS EARNINGS HtmPLTJS 1895-6 1,360 $10,221,131 $147,341 1896-7 1,360 10,708,183 302,542 1897-8 1,360 11,788,557 672,643 1898-9 1,445 12,009,839 706,132 1899-0 1,476 13,402,070 1,156,582 1900-1 1,506 15,371,541 2,001,897 STOCK OT3T3TANDING January 1, 1902. Common 860,529,500 Preferred (1st) 11,700 (2d ) 900 BONDS OUTSTANDING June 30, 1901. Fixed Interest. $69,894,354 Equipment 2,161,145 CAPITALIZATION. TOTAL PER MILE Stock $60,542,100 $40,199 Bonds ". 72,055,499 47,845 Total 132,697,599 88,044 The Chesapeake & Ohio paid in 1900-1 $117,593 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 1,506. TOTAL PER MILE Gross Earnings $15,371,541 $10,206 Operating Expenses 9,448,287 6,273 Net Earnings 5,923,254 3,933 Miscellaneous Receipts 149,925 99 Total Net Income 6,073,179 4,032 Fixed Charges 4,071,282 2,703 Surplus 2,001,897 1,329 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $2,217,760 $1,472 Maintenance of Equipment 2,253,307 1,496 Conducting Transportation 4,726,782 3,138 General Expenses 250,437 166 Ratio of operating expenses to gross earnings, 61.4 per cent. Fixed Charges above include $48,552 paid account purchase of bonds. APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses 28 . 8% For Conducting Transportation and General Expenses 32.0% For Fixed Charges ... r^ ^ .- 26.2% For Surplus ^ r-. i 13 . 0% 100.0% 1899-0 27.8% 35.5% 28.0% 8.7% 100.0% 1898-9 27.4% 35.8% 30.9% 5.9% 100.0% YEAR 1900-1. Ton miles per mile of road 2,026,013 Passenger miles per mile of road 94,617 Miles second and additional main track 129 Miles yards and sidings 551 See page 171. OF RAILROADS. 107 GEORGIA SOUTHERN & FLORIDA RY. AVEB. MILES TEAB OPERATED GROSS EARNINGS BUEPHJS 1895-6 285 $869 115 $79,586 1896-7 285 863.542 92,960 1897-8 285 949,627 122,326 1898-9 285 953,798 80,135 1899-0 285 1,180,412 134,918 1900-1 285 1,203,811 123,406 STOCK OUTSTANDING January 1, 1902. Common $1,000,000 Preferred— 1st (5%) 684,000 " —2d (5%) 1,084,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $3,801,000 CAPITALIZATION. TOTAL PER MILE Stock $2,768,000 $9,712 Bonds 3,801.000 13,336 Total 6,569,000 23,048 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 285. TOTAL PER MILE Gross Earnings $1,203,811 $4,223 Operating Expenses 863, 146 3,028 Net Earnings 340,665 1,195 Miscellaneous Receipts 12,789 45 Total Net Income 353,454 1,240 Fixed Charges 230,048 807 Surplus 123,406 433 OPERATING EXPENSES. TOTAL Maintenance of Way $242,756 Maintenance of Equipment 211,808 Conducting Transportation 348,271 General Expenses 60,310 Ratio of operating expenses to gross earnings, 74.0 per cent. PER MILE $851 743 1,222 211 1897-8 30.2% 34.8% 22.1% 12.9% 1896-7 28.2% 36.5% 24,3% 11.0% APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses 37 . 3% 37 . 7% 32 . 9% For Conducting Transportation and General Expenses 33 .5% 32 . 2% 36 . 1 % For Fixed Charges 18.9% 18.7% 22.5% For Surplus 10.3% 11.4% 8.5% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road is^sisrr; 208,656 Passenger miles per mile of road - ac se rr. 49,696 Miles yards and sidings Tsssoiir* 32 See page 172. 100.0% 100.0% io8 THE EARNING POWER NORFOLK & WESTERN RY. TEAR AVER. MILES OPERATED GROSS EARNINGS SURPLUS 1896-7 1897-8 1898-9 1899-0 1900-1 1,560 1,565 1,655 1,552 1,660 $10,537,723 11,236,123 11,827,139 14,091,005 15,785,442 8i,l'43,S53 1,669,687 3,389,832 4,167,831 STOCK OUTSTANDING January 1, 1902. Common $64,469,200 Preferred (4%) 22,748,500 BONDS OUTSTANDING June 30, 1901. Fixed Interest $51,099,600 Equipment 184,000 CAPITALIZATION. TOTAL Stock $87,217,700 Bonds 51,283,500 Total 138,501,200 PER MILE $55,908 32,874 88,782 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 1,560. TOTAL PER MILE Gross Earnings $15,785,442 $10,118 Operating Expenses 9,037,608 5,793 Net Earnings 6,747,834 4,325 Miscellaneous Receipts 68,617 44 Total Net Income 6,816,461 4,369 Fixed Charges 2,668,620 1,704 Surplus 4,157,831 2,666 OPERATING EXPENSES. TOTAL Maintenance of Waj; $1,976,393 Maintenance of Equipment 2,324,226 Conducting Transportation 4,417,369 General Expenses 320,630 Ratio of operating expenses to gross earnings, 57.2 per cent. PER MILE $1,266 1,490 2,831 205 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 27 . 1% 25 . 3% For Conducting Transportation and Gen- eral Expenses 29.8% 31.8% For Fixed Charges 16.7% 18.7% For Surplus 26.4% 24.2% 100.0% 100.0% 100.0% 1897-8 29.0% 38.1% 22.8% 10.1 % 100.0% YEAR 1900-1. Ton miles per mile of road 1,836,135 Passenger miles per mile of road 65,103 Miles second and additional main track 83 Miles yards and sidings 498 See page 172, OP RAILROADS. 109 RICHMOND, FREDERICKSBURG & POTOMAC R. R. AVER. MILES TEAR OPERATED GROSS EARNINGS BURPLUS 1895-6 85 S739,368 $158,232 1896-7 85 680,760 146,656 1897-8 85 770,725 218,857 1898-9 85 898,260 260,069 1899-0 85 989,996 352,100 1900-1 85 1,069,758 309,258 STOCK OUTSTANDING June 30, 1901. Common $1,316,900 Dividend Obligations 1,072,000 BONDS OUTBTANDINQ June 30, 1901. Fixed Interest $916,829 Guaranteed Stock 500,000 On November 18, 1901, the bonded debt outstanding was $513,590. CAPITALIZATION. TOTAL Stock $2,388,900 Bonds 1,416,829 Total 3,805,729 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 85. TOTAL Gross Earnings $1,069,758 Operating Expenses 695,112 Net Earnings 374,646 Miscellaneous Receipts 23,420 Total Net Income 398,066 Fixed Charges 88,808 Surplus 309,258 OPERATING EXPENSES. TOTAL Maintenance of Way $96,683 Maintenance of Equipment 136,296 Conducting Transportation 430,880 General Expenses 31,255 Ratio of operating expenses to gross earnings, 64.9 per cent. PER MILE $28,104 16,551 44,655 PER MILE $12,585 8,177 4,408 175 4,683 1,044 3,639 PER MILE $1,137 1,603 6,069 367 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 21.4% 19.9% 27. 4% 21.3% 21. 0% For Conducting Transportation and General Expenses 42.6% 36.6% 34.7% 38.7% 43.8% For Fixed Charges 8.2% 8.6% 9.6% 11.8% 13.7% ForSurplus 27.8% 34.9% 28.3% 28.2% 21.5% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 726,613 Passenger miles per mile of road 189,634 Miles yards and sidings i 32 See page 173, lib The earning power SOUTHERN RY. AVER. MILES YEAH OPERATED OnOSB EARNINQB SURPLUS 1895-6 4,574 819,082,247 8556,479 1896-7 4,806 19,079,600 445,921 1897-8 4,938 21,095,839 1,007,013 1898-9 5,378 25,353,686 2,094,519 1899-0 6,365 31,388,015 2,964,211 1900-1 6,425 33,607,582 3,540,500 STOCK OUTSTANDING January 1, 1902. Common $120,000,000 Preferred (5%) 60,000,000 BONDS OUTSTANDING .Tune 30, 1901. Fixed Interest $159,210,800 Equipment 4,141,510 CAPITALIZATION . TOTAL PER MILE Stock $180,000,000 $28,015 Bonds 163,352,310 25,424 Total 343,352,310 63,439 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 6,425. TOTAL PER MILE Gross Earnings $33,607,582 $5,230 Operating Expenses 22,470,310 3,497 Net Earnings 11,137,272 1,733 Miscellaneous Receipts 685,533 107 Total Net Income 11,822,805 1,840 Fixed Charges 8,282,305 1,289 Surplus 3,540,500 551 OPERATING EXPENSES. TOTAL Maintenance of Way $5,436,748 Maintenance of Equipment 4,912,691 Conducting Transportation 11,015,859 General Expenses 1,105,112 Ratio of operating expenses to gross earnings, 66.8 per cent. PER MILE $846 764 1,714 172 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses 30 . 1% 29 . 5% 28 . 7% For Conducting Transportation and General Expenses 35 . 3% 36 . 4% 35 . 5% For Fixed Charges 24.1% 24.6% 27.6% For Surplus 10.5% 9.5% 8.2% 1897-8 1896-7 26.9% 26.7% 37.3% 31.0% 4.8% 38.3% 32.6% 2.4% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1 Ton miles per mile of road 364,833 Passenger miles per mile of road 57,570 Miles yards and sidings 1,260 See page 173. Ot' RAILROADS. tit WEST VIRGINIA CENTRAL & PITTSBURGH RY. CO. AVER. MILES SnRPLUS YEAR OPERATED GROSS EARNINGS (Inc. Coal Profits) 1895-6 152 $855,912 $150,430 1896-7 152 842,792 118,790 1897-8 152 888,296 119,167 1898-9 160 945,192 143,638 1899-0 160 1,108,393 501,127 1900-1 160 1,182,181 867,572 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $11,000,000 Fixed Interest $3,250,000 CAPITALIZATION. TOTAL PER MILE Stock $10,000,000 $69,305 Bonds 3,250,000 20,312 Total 13,250,000 89,617 The West Virginia Central & Pittsburgh paid in 1900-1 as rental of Pied- mont & Cumberland Ry. $44,005 (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. (*Railway Department.) Average miles operated, 160. TOTAL PER MILE Gross Earnings $1,182,181 $7,388 Operating Expenses 713,066 4,456 Net Earnings 469,115 2,932 Fixed Charges 205,941 1,287 Surplus 263,174 1,645 *Net Income 1900-1 "Coal and Real Estate Departments" $604,397 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $224,109 $1,400 Maintenance of Equipment 161,102 1,006 Conducting Transportation 282,998 1,768 General Expenses 44,856 281 Ratio of operating expenses to gross earnings, 60.2 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses 32 . 5% For Conducting Transportation and General Expenses 27 . 7% For Fixed Charges 17 . 4% For Surplus 22.4% 100.0% YEAR 1900-1. Ton miles per mile of road 826,065 Passenger miles per mile of road 39,647 Miles secondhand additional main track 5 Miles yards and sidings 6^ See page 174. 113 THE EARNING POWER WRIGHTSVILLE & TENNILLE R. R. AVER. MILES YEAR OPERATED GROSS EARNIl 1895-6 36 3 92,233 1896-7 36 87,166 1897-8 36 90,494 1898-9 48 114,260 1899-0 76 169,492 1900-1 77 159,857 «29,953 30,468 26,928 35,307 48,729 56,294 STOCK OTJTSTANDINO. January 1, 1902. Common $230,000 Preferred 70,000 CAPITALIZATION. TOTAL PER MILE Stock 8300,000 $3,896 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 77. TOTAL PER MILE Gross Earnings $159,857 $2,076 Operating Expenses 97,889 1,271 Net Earnings 61,968 805 Fixed Charges 5,674 73 Surplus 56,294 732 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $30,887 $401 Maintenance of Equipment 11,488 149 Conducting Transportation 44,474 577 General Expenses 11,039 143 Ratio of operating expenses to gross earnings, 61.2 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses ... 26.5% 33.7% 31.2% 30.7% 27.0% For Conducting Transportation and General Expenses 34 . 6% 33 . 5% 34 . 8% 36 . 3% 33 . 6% For Fixed Charges 3.5% 4.0% 2.9% 3.1% 4.2% For Surplus 35.4% 28.8% 31.1% 29.9% 35.2% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 52,940 Passenger miles per mile of road 21,623 Miles yards and sidings ". . . . 6 See page 174. OF RAILROADS. "3 ALABAMA GREAT SOUTHERN R. R. AVER. MILES TEAR OPERATED GROSS EARNINGS SUBPLnS 1895-6 310 SI, 634,093 8224,338 1896-7 310 1,605,546 209,919 1897-8 310 1,741,934 265,940 1898-9 310 1,816,623 275,174 1899-0 310 2,092,444 340,150 1900-1 310 2,198,739 346,169 STOCK OUTSTANDING January 1, 1902. Common — "B" $7,830,000 Preferred— "A" (6%) 3,380,350 BONDS OUTSTANDING June 30, 1901. Eixed Interest $4,976,360 Equipment 172,711 Funded Certificates 258,833 CAPITALIZATION. TOTAL PER MILE Stock $11,210,350 $36,162 Bonds 5,407,904 17,444 Total 16,618,254 53,606 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 310. TOTAL PER MILE Gross Earnings $2,198,739 $7,092 Operating Expenses 1,470,007 4,742 Net Earnings 728,732 2,350 Miscellaneous Receipts 13,389 43 Total Net Income 742,121 2,393 Fixed Charges 395,954 1,277 Surplus 346,167 1,116 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way; $293,081 $945 Maintenance of Equipment 421,246 1,358 Conducting Transportation 681,781 2,199 General Expenses 73,899 239 Ratio of operating expenses to gross earnings, 66.8 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses 32 . 2% 31.4% 30 . 0% For Conducting Transportation and General Expenses 34 . 1 % 34 . 0% 34 . 3% For Fixed Charges 17.8% 18.2% 20,5% ForSurplus 15.9% 16.4% 15.2% 1897-8 1896-7 30.0% 28.9% 33.0% 21.7% 15.3% 34.8% 23.2% 13.1% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 645,726 Passenger miles per mile of road 68,820 Miles yards and sidings 142 See page 175, 114 THE EARNING POWER CINCINNATI, NEW O YEAR AVEB. MILES OPERATED 1896-7 1897-8 1898-9 1899-0 1900-1 336 336 336 336 336 & TEXAS PACIFIC RY. GROSS EARNINGS SURPLUS S3,440,506 S5,682 4,128,118 274,278 4,691,232 483,224 6,124,241 322,725 5,045,596 179,132 STOCK OUTSTANDING JANUARY 1, 1902. Common $3,000,000 Per mile of road operated 8,928 The Cincinnati, New Orleans & Texas Pacific paid the city of Cincinnati in 1900-1 81,102,000 as rental of the Cincinnati Southern. INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 336. TOTAL Gross Earnings $5,045,596 Operating Expenses 3,543,769 Net Earnings 1,501,827 Miscellaneous Receipts 20,675 Total Net Income 1,522,502 Fixed Charges 1,343,370 Surplus 179,132 OPERATING EXPENSES. * TOTAL Maintenance of Way $1,003,998 Maintenance of Equipment 846,800 Conducting Transportation 1,574,441 General Expenses 118,529 Ratio of operating expenses to gross earnings, 70.2 per cent. PER MILE $15,016 10,547 4,469 62 4,531 3,998 533 PER MILE S2,988 2,520 4,685 353 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 r . ,r Maintenance Expenses 36 . 4% 35 . 0% 28 . 5% ''<'£ Conducting Transportation and General Expenses '. 33.4% 33.5% 34.3% For Fixed Charges 26.5% 25.0% 26.7% ForSurplus 3.7% 6.5% 10.5% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 1,508,059 Passenger miles per mile of road 135,639 Miles yards and sidings 151 See page 175. OP RAILROADS. "S LOUISVILLE & NASHVILLE R. R. AVEK. MILES TEAK OPERATED GHOSS EARNINGS BURPLUa 1895-6 2,965 820,390,711 $1,377,504 1896-7 2,981 20,372,308 979,181 1897-8 2,988 21,996,653 1,632,902 1898-9 2,988 23,759,485 2,626,900 1899-0 3,007 27,742,379 3,619,234 1900-1 3,169 29,215,725 4,281,112 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $55,000,000 Fixed Interest $90,284,660 CAPITALIZATION. TOTAL PER MILE Stock $55,000,000 $17,355 Bonds 90,284,660 28,489 Total 145,284,660 45,844 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 3,169. TOTAL PER MILE Gross Earnings* $29,215,725 $9,219 Operating Expenses* 19,426,552 6,129 Net Earnings 9,789,173 3,090 Miscellaneous Receipts 704,688 221 Total Net Income 10,493,861 3,311 Fixed Charges 6,212,749 1,960 Surplus 4,281,112 1,351 ♦Includes "freight on company's property." OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $4,356,127 $1,374 Maintenance of Equipment 3,995,476 1,260 Conducting Transportation 10,253,297 3,235 General Expenses 821,652 259 Ratio of operating exipenses to gross earnings, 66.4 per cent. Fixed Charges above include $128,900 paid account Sinking Funds. APPROPRIATION OF GROSS INCOME. 1900-1 #1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 27 . 9% 27 . 0% 24 . 7% 27 . 6% 27 . 5% For Conducting Transportation and General Expenses 37 . 0% 38 . 4% 40 . 0% 38 . 4% 39 . 0% For Fixed Charges 20.7% 21.7% 24.4% 26.7% 28.7% For Surplus 14.4% 12.9% 10.9% 7.3% 4.8% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 838,114 Passenger miles per mile of road 75,648 Miles second and additional main track 51 Miles yards and sidings 735 See page 176, ii6 THE EARNING POWER LOUISVILLE, HENDERSON & ST. LOUIS RY. AVER. MILES TEAR OPERATED GROSS EARNINGS stiHPLns 1896-7 186 $444,830 1897-8 186 525,468 *6,468 1898-9 186 532,220 35,885 1899-0 186 630,355 46,005 1900-1 186 668,484 76,354 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 82,000,000 Fixed Interest $2,200,000 Preferred (5%) 2,000,000 CAPITALIZATION. TOTAL PER MILE Stock $4,000,000 $21,505 Bonds 2,200,000 11,827 Total 6,200,000 33,332 INCOME ACCOUNT YEAH ENDING JUNE 30, 1901. Average miles operated, 186. TOTAL Gross Earnings $668,484 Operating Expenses 470,203 Net Earnings 198,281 Fixed Charges 121,926 Surplus 76,354 OPERATING EXPENSES. TOTAL Maintenance of Way $85,076 Maintenance of Equipment 59,366 Conducting Transportation 298,833 General Expenses 26,927 Ratio of operating expenses to gross earnings, 70.3 per cent. PER MILE $3,594 2,526 1,068 655 413 PER MILE $457 318 1,606 144 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses 21.5% 24.1% 20.2% 23.7% For Conducting Transportation and General Expenses 48.7% 49.7% 51.1% 52.7% For Fixed Charges 18.2% 18.6% 21.6% 22.2% For Surplus 11.6% 7.6% 7.1% 1.4% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 283,466 Passenger miles per mile of road 55,156 Miles sidings 18 See page 177. OF RAILROADS. 117 MOBILE & OHIO R.R. AVBB. MILES TEAS OPERATED GROSS EARNINGS SURPLUS 1895-6 688 $3,619,071 8234,236 1896-7 688 3,867,867 223,769 1897-8 688 4,207,318 225,863 1898-9 688 4,531,153 307,103 1899-0 876 5,996,731 337,630 1900-1 874 6,139,912 366,702 STOCK OUTSTANDING January 1, 1902. Common $5,320,600 BONDS OUTSTANDING June 30, 1901. Fixed Interest $23,972,000 Equipment 1,692,000 CAPITALIZATION. TOTAL PER MILE Stock $5,320,600 $6,087 Bonds 25,564,000 29,249 Total 30,884,600 35,336 The Mobile & Ohio paid in 1900-1 $295,615 as rental of the St. Louis & Cairo R. R. This payment is included in Fixed Charges below. INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 874. TOTAL Gross Earnings $6, 139,912 Operating Expenses 4,186,505 Net Earnings 1,953,407 Miscellaneous Receipts 114,951 Total Net Income 2,068,358 Fixed Charges 1,701,656 Surplus 366,702 PER MILE $7,023 4,790 2,233 133 2,366 1,947 418 OPERATING EXPENSES. TOTAL Maintenance of Way $805,950 Maintenance of Equipment 530,597 Conducting Transportation 2,619,386 General Expenses 230,572 Ratio of operating expenses to gross earnings, 68.2 per cent. PER MILE $922 607 2,997 264 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 21.3% 22 . 9% 24 . 0% 25 . 3% 23 . 3% For Conducting Transportation and General Expenses 45 . 6% 45 . 9% 41.3% 40 . 9% 40 . 7% For Fixed Charges 27.2% 25.6% 27.8% 28.2% 30.2% ForSurplus 6.0% 5.6% 6.9% 5.6% 5.8% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 907,121 Passenger miles per mile of road 42,718 Miles yards and sidings 216 See page 177. ii8 THE EARNING POWER NASHVILLE, CHATTANOOGA & ST. LOUIS RY. AVER. MILES TEAB OPERATED GB08B EAENING8 BUHPLU9 1895-6 90R 35,074,625 $452,795 1896-7 905 5,116,118 403,015 1897-8 905 5,646,549. 460,525 1898-9 935 6,081,766 354,535 1899-0 935 6,487,318 625,908 1900-1 1,195 ■ 7,620,128 619,379 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $10,000,000 Fixed Interest $16,021,000 Equipment 1,062,046 CAPITALIZATION. TOTAL PER MILE Stock $10,000,000 $8,368 Bonds 17,083,046 14,295 Total 27,083,046 22,663 The Nashville, Chattanooga & St. Louis paid in 1900-1 $625,878 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR EKDING JUNE 30, 1901. Average miles operated, 1,195. TOTAL PER MILE Gross Earnings $7,620, 128 $6,376 Operating Expenses 5,111,126 4,276 Net Earnings 2,509.002 2,100 Miscellaneous Receipts 22,253 19 Total Net Income 2,531,255 2,119 Fixed Charges 1,911,876 1,600 Surplus 619,379 619 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $1,270,770 $1,063 Maintenance of Equipment 678,046 567 Conducting Transportation 2,968,570 2,484 General Expenses 193,739 162 Ratio of operating expenses to gross earnings, 67.0 per cent. Fixed Charges above include $44,514 appropriated for Sinking Funds and tor Improvements. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 25.4% 26.2% 22.4% 21.9% 19.1% For Conducting Transportation and General Expenses 41.3% 39 . 8% 44 . 6% 43 . 7% 43 . 4% For Fixed Charges 25.0% 26.8% 27.1% 26.9% 29.4% ForSurplus 8.3% 8.2% 5.9% 7.5% 8.1% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 530,912 Passenger miles per mile of road 49,216 Miles yards and sidings ^ 288 Bee page 177. OF RAILROADS. 119 WESTERN RAILWAY OP ALABAMA. AVEE. MILES TEAR OPERATED QKOSS EARNINGS SURPLUS 1895-6 132 S579,804 3124,475 1896-7 132 636 533 166,311 1897-8 132 603,630 125,032 1898-9 132 668,335 176,594 1899-0 132 739,746 174,180 1900-1 132 824,910 195,700 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 83,000,000 Fixed Interest $1,543,000 CAPITALIZATION. TOTAL PER MILE Stock S3 000,000 822,727 Bonds 1,543,000 11,689 Total 4,543,000 34,416 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 132. TOTAL Gross Earnings .' $824,919 Operating Expenses 534,707 Net Earnings 290, 203 Miscellaneous Receipts 5 , 159 Total Net Income 29 j.362 Fixed Charges 99.662 Surplus 195,700 OPERATING EXPENSES. TOTAL Maintenance of Way $153,814 Maintenance of Equipment 102,863 Conducting Transportation 242,592 General Expenses .^5,438 Ratio of operating expenses to gross earnings, 64.8 per cent. PER MILE $6,249 4,050 2,199 38 2,237 755 1,482 PER MILE $1,165 779 1,837 268 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 30 . 9% 26 . 3% 25 . 1 % 26 . 5% 23 . 2% For Conducting Transportation and General Expenses 33.4% 39.0% 34.8% 37.3% 35.8% For Fixed Charges 12.0% 13.3% 13.8% 15.5% 14.7% For Surplus 23.7% 21.4% 26.3% 20.7% 26.3% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 277,349 Passenger miles per mile of road 78,678 Miles yards and sidings 33 See page 173. THE EARNING POWER ATCHISON, TOPEKA & SANTA FE RY. TEAB 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPERATED 6,479 6,936 7,033 7,341 7,807 GROSS EARNINGS $30,621,230 39,214,099 40,513,498 46,232,078 54,474,823 Deficit, SURPLUS 889,500 1,836,586 4,187,998 9,739,304 12,474,529 STOCK OUTSTANDING January 1, 1902. Common $102,000,000 Preferred (5%) 114,199,530 BONDS OUTSTANDING June 30,1901. Fixed Interest $199,035,710 Includes Adjustment Mortgage Bonds. CAPITALIZATION. TOTAL PER MILE Stock $216,199,530 $27,693 Bonds 199,035,710 25,494 Total 415,235,240 53,187 Included in Fixed Charges below is $359,093 paid by the Atchison in 1900-1 for rentals. INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 7,807. TOTAL Gross Earnings $54,474,823 Operating Expenses 32,262,945 Net Earnings 22,21 1,878 Miscellaneous Receipts 332,556 Total Net Income 22,544,434 Fixed Charges 10,069,905 Surplus 12,474,529 OPERATING EXPENSES. TOTAL Maintenance of Way* $7,333,840 Maintenance of Equipment 6,257,456 Conducting Transportation 17,309,000 General Expenses 1,362,647 *Includes $900,000 credited to Special Betterment Account. Ratio of operating expenses to gross earnings, 59.2 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses 24 . 7% 25 . 0% 30 . 6% 32 . 8% For Conducting Transportation and General Expenses 34.0% 34.1% 37.1% 39.5% For Fixed Charges 18.3% 19.8% 22.0% 22.9% For Surplus 23.0% 21.1% 10.3% 4.8% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 496,579 Passenger miles per mile of road 65,843 Miles second and additional main track 80 Miles yards and sidings 1,731 See page 178. PER MILE $6,977 4,132 2,845 42 2,887 1,289 1,598 PER MILE $939 801 2,217 174 1896-7 31.5% 42.5% 26.2% Deficit OF RAILROADS. 121 COLORADO & SOUTHERN RY. AVER. MILES TEAB OPEKATED GROSS EARNINGS SURPLUS 1899-0 1900-1 1,142 1,142 $4,237,743 4,794,649 $245,344 405,648 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902, June 30, 1901. Common $31,000,000 Fixed Interest $17,903,000 Preferred— 1st (4%) 8,500,000 Equipment 198,194 —2d (4%) 8,500,000 CAPITALIZATION. TOTAL PER MILE Stock .V-.-. $48,000,000 $42,031 Bonds s- 18,101,194 15,850 Total .7, 66,101,194 57,881 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 1,142. TOTAL Gross Earnings $4,794,649 Operating Expenses 3,507,869 Net Earnings 1,286,780 Miscellaneous Receipts 42, 175 Total Net Income 1,328,955 Fixed Charges 923,307 Surplus 405,648 OPERATING EXPENSES. TOTAL Maintenance of Way $697,843 Maintenance of Equipment 636,681 Conducting Transportation 2,017,882 General Expenses 155,463 Ratio of operating expenses to gross earnings, 73.1 per cent. PER MILE $4,198 3,071 1,127 36 1,163 808 355 PER MILE $611 557 1,767 136 APPROPRIATION OP GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 27.5% 26.6% For Conducting Transportation and General Expenses . . 44 , 9% 46 . 6% For Fixed Charges 19.0% 20.9% For Surplus 8.6% 5.9% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 269,859 Passenger miles per mile of road 27,452 Miles yards and sidings 217 See page 179. 122 THE EARNING POWER DENVER &-RIO GRANDE R.B. YEAR AVER. MILES OPERATED GROSS EARNINGS SnEPLTJS 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 1,663 1,666 1,666 1,670 1,674 1,668 87,551,187 6,945,114 8,342,926 9,270.248 10,246,080 11,452,403 8834,959 504,196 898,502 1,336.729 1,494,462 2,053,422 STOCK OtJTSTANDINQ June 30, 1901. BONDS ' June OUTSTANDING 30, 1901. .' (5%) ■ $38,000,000 23,650,000 Fixed Interest . .843,219,500 Preferred The preferred stock now outstanding, including amount issued to acquire the Rio Grande Western Ry., amounts to $41,784,750. CAPITALIZATION. TOTAL PER MILE Stock $61,650,000 $36,960 Bonds 43,219,500 25.910 Total 104,869,500 62,870 The Denver & Rio Grande paid in 1900-1 $132,346 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901 Average miles operated, 1,668. TOTAL PER MILE OroBS Earning* $11,452,403 $6,866 Operating Expenses 7,123,898 4.271 Net Earnings 4,328,505 2,595 Miscellaneous Receipts 111,374 66 Total Net Income 4,439,879 2,661 Fixed Charges 2,386,457 1,430 Surplus 2,053,422 1,231 OPERATING EXPENSES. Maintenance of Way $1,548,769 Maintenance of Equipment 1,087,898 Conducting Transportation 4,150,451 General Expenses 336,779 Ratio of operating expenses to gross earnings, 62.2 per cent. PER MILE $928 652 2,488 202 1897-8 21 . 3% 29.6% 10.8% 1896-7 20.1% 38.0% 34.6% 7.4% APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses .... 22 . 7% 22 . 3% 21 . 5% For Conducting Transportation and General Expenses 38 . 8% 40 . 0% 39 . 3% For Fixed Charges 20.6% 22.9% 24.8% For Surplus 17.9% 14.8% 14.4% 100.0% 100.0% 100.0% 100.0% 100.0% YEAH 1900-1. Ton miles per mile of road Not reported Passenger miles per mile of road Not reported Miles second and additional main track 36 Miles yards and sidings 350 See page 179. OF RAILROADS. 123 FT. WORTH & DENVER CITY RY. TEAB 1896 1897 1898 1899 1900 AVEE. MILES OPERATED 454 454 454 454 454 GROSS EARNINGS «1,010,880 1,319,831 1,479,435 1,610,852 1,807,090 STOCK OUTSTANDING January 1, 1902. Common $6,820,000 Preferred (4%) 2,555,000 BONDS OUTSTANDING December 31, 1900. Fixed Interest S8,176,000 Funded Interest 2,036,500 Equipment 160,000 CAPITALIZATION. TOTAL PER MILE Stock ]t9,376,000 )t20,649 Bonds 10,372,500 22,846 Total 19,747,600 43,495 Included in Fixed Cliarges below is $10,000 paid in rentals. INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 454. TOTAL PER MILE Gross Earnings $1,807,090 $3,980 Operating Expenses 1,420,071 3,127 Net Earnings 387,019 863 Miscellaneous Receipts 17,083 37 Total Net Income 404, 102 890 Fixed Charges 400,376 881 Surplus 3,726 9 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $506,219 $1,115 Maintenance of Equipment 176,277 386 Conducting Transportation 676,348 1,489 General Expenses 62,227 137 Ratio of operating expenses to gross earnings, 78.6 per cent. APPROPRIATION OF GROSS INCOME. 1900 1899 1898 1897 For Maintenance Expenses 37 . 3% 33.8% 29 . 9% 25 . 7% For Conducting Transportation and General Expenses 40.4% 41.3% 39.3% 39.2% For Fixed Charges 21.8% 24.6% 26.5% 28.6% For Surplus 5% .3% 6.3% 6.6% 100.0% 100.0% 100.0% 100.0% TEAK 1900-1. Ton miles per mile of road 266,447 Passenger miles per mile of road 36,309 Miles yards and sidings 42 See page 180. 124 THE EARNING POWER KANSAS CITY SOUTHERN RY. TEAR 1899-0 1900-1 AVER. MILES OPERATED 833 833 GROBB EARNINGS $4,118,763 4,753,066 STOCK OUTSTANDING Jamiary 1, 1902, Common 830,000,000 Preferred (4%) 21,000,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $26,197,S00 Not including obligations of K. C P. & G. R. R. Co. CAPITALIZATION. TOTAL PER MILE Stock J51,000,000 $61,224 Bonds 26,497,500 31,809 Total 77,497,500 93,033 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 833, TOTAL Gross Earnings $4,753,066 Operating Expenses 3,399,219 Net Earnings 1,353,847 Miscellaneous Receipts 523 Total Net Income 1,354,370 Fixed Charges 905,504 Surplus 448,866 OPERATING EXPENSES. TOTAL Maintenance of Way $703,552 Maintenance of Equipment 623,163 Conducting Transportation 1,835,819 General Expenses 236,686 Ratio of operating expenses to gross earnings, 71.5 per cent. PER MILE $5,705 4,080 1,625 1 1,626 1,087 539 PER MILE $844 748 2,203 284 APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expenses 27.9% For Conducting Transportation and General Expenses 43.5% For Fixed Charges 19.0% For Surplus 9.6% 100.0% TEAR 1900-1. Ton miles per mile of road 685,733 Passenger miles per mile of road 31,549 Miles yards and sidings 157 See page 181. OF RAILROADS. 125 MISSOURI, KANSAS & TEXAS RY. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 2,147 $11,036,987 $16,393 1896-7 2,197 11,478,315 Deficit, 149,353 1897-8 2,197 12,047,237 474,757 1898-9 2,209 11,930,334 548,683 1899-0 2,218 12,626,512 460,866 1900-1 2f265 15,403,083 799,916 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common S55,280,300 Fixed Interest 876,294,000 Preferred (4%) KfOOOfOOO Equipment 912,257 CAPITALIZATION. TOTAL PER MILE Stock $68,280,300 830,145 Bonds 77,206,257 34,086 Total 145,486,557 64,231 The Missouri, Kansas & Texas paid in 1900-1 $389,142 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 2,265. TOTAL PER MILE Gross Earnings $15,403,083 $6,800 Operating Expenses 10,824,014 4,778 Net Earnings 4,579,069 2,022 Miscellaneous Receipts 38,137 16 Total Net Income 4,617,206 2,038 Fixed Charges 3,817,290 1,683 Surplus 799,916 355 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $2,815,607 $1,243 Maintenance of Equipment 1,361,581 601 Conducting Transportation 5,922,286 2,614 General Expenses 724,539 319 Ratio of operating expenses to gross earnings, 70.2 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 27.0% 20.1% 18.8% 18.3% 20.2% For Conducting Transportation and General Expenses 43.1% 46.7% 45.7% 46.0% 49.3% For Fixed Charges 24.7% 29.5% 30.8% 31.0% 31.7% For Surplus S.2% 3.7% 4.7% 4.7% Deficit 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 676,023 Passenger miles per mile of road 51,817 Miles yards and sidings 425 See page ISl, 126 THE EARNING POWER MISSOURI PACIFIC STSTEM. AVER. MILES TEAB OPERATED GROSS EARNINGS 1896 4,938 822,011,961 1897 4,938 24,805,451 1898 4,938 26,744,823 1899 4,938 28,079,820 1900 4,938 30,511,313 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. January 1, 1902. Common $76,131,000 Fixed Interest $122,461,500 Includes $25,698,850 issued in 1901. CAPITALIZATION. TOTAL PER MILE Stock $76,131,000 $15,417 Bonds 122,461,500 24,799 Total 198,592,500 40,216 The Missouri Pacific paid in 1900 $327,192 account interest on debenture bonds, since converted into stock. The Missouri Pacific paid in 1900 $306,780 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING DECEMBER 31, 1900. Average miles operated, 4,938. TOTAL PER MILE Gross Earnings $30,511,313 $6,179 Operating Expenses 19,858,168 4,021 Net Earnings 10,653,147 2,158 Miscellaneous Receipts 963,411 194 Total Net Income 11,616,658 2,352 Fixed Charges 7,837,538 1,587 Surplus 3,779,020 765 The classification of operating expenses was not made in accordance with the rules prescribed by the Interstate Commerce Commission. Ratio of operating expenses to gross earnings, 65.07 per cent. APPROPRIATION OF GROSS INCOME. 19C0 For Maintenance Expenses I go Qm For Conducting Transportation and General Expenses j For Fixed Charges 24.9% For Surplus 12.1% 100.0% TEAR 1900. Ton miles per mile of road 532,291 Passenger miles per mile of roaH 48,170 Miles second and additional mam track 45 Miles yards and sidings ^ 1,020 See page 181, OF RAILROADS. t27 RIO GRANDE SOUTHERN R.R. AVER. MILES I-EAR OPERATED GROSS EARN] 1895-6 180 8489,234 1896-7 180 401,239 1897-8 180 427,264 1898-9 180 489,325 1899-0 180 525,137 1900-1 180 539,529 BCRPLUB 866,706 3,471 7,588 24,594 33,941 45,951 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902, June 30, 1901. Common 84,510,000 Fixed Interest 84,510,000 CAPITALIZATION. TOTAL PER MILE Stock 84,510,000 $25,055 Bonds 4,510,000 25,055 Total 9,020,000 50,110 INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 180. TOTAL Gross Earnings 8539,529 Operating Expenses 288,248 Net Earnings 251,281 Miscellaneous Receipts 6,696 Total Net Income 257,977 Fixed Charges 212,026 Surplus 45,951 OPERATING EXPENSES. TOTAL Maintenance of Way 8 95,448 Maintenance of Equipment 31,262 Conducting Transportation 142,504 General Expenses 19,034 Ratio of operating expenses to. gross earnings, 53.4 per cent. PER MILE 82,997 1,601 1,396 37 1,433 1,177 256 PER MILE 8530 173 791 106 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 23.1% 24,8% 21.8% 23.7% 24.4% For Conducting Transportation and General Expenses 29 . 5% 28 . 4% 29 . 8% 29 . 6% 32 . 3% For Fixed Charges 38.6% 40.3% 43.1% 44.8% 42.2% ForSurplus 8.8% 6.5% S.3% 1.9% 1.1% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road Not reported- Passenger miles per mile of road Not reported. Miles sidings 20 See page 182, 128 THE EARNING POWER RIO GRANDE WESTERN RY. AVER. MILES TEAR OPERATED GROSS EARNINGS SURPLUS 1895-6 518 82,457,359 8241,438 1896-7 546 2,468,504 131-,371 189Y-8 566 3,362,288 545,069 1898-9 584 3,352,988 486,845 1899-0 620 4,510,603 962,544 1900-1 662 4,907,207 761,954 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $10,000,000 Fixed Interest 825,200,000 Preferred (5%) 7,600,000 CAPITALIZATION. TOTAL PER MILE Stock $17,500,000 826,435 Bonds 25,200,000 38,066 Total 42,700,000 64,5C1 The Rio Grande Western paid in 1900-1 $48,383 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 662. TOTAL PER MILE Gross Earnings 84,907,207 $7,410 Operating Expenses 3,223,239 4,869 Net Earnings 1,683,968 2,541 Miscellaneous Receipts 50,400 78 Total Net Income 1,734,369 2,619 Fixed Charges 972,414 1,469 Surplus 761,954 1,150 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way 8833,395 $1,258 Maintenance of Equipment 623,861 942 Conducting Transportation 1,572,303 2,375 General Expenses 193,681 292 Ratio of operating expenses to gross earnings-, 65.7 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 29.3% 26.3% 22.7% 20.7% 22.7% For Condnctino; Transportation and General Expenses 35.6% 33.5% 39.3% 40.7% 42.2% For Fixed Charges 19.6% 18.8% 23.3% 22,2% 29.7% ForSurplus 15.5% 21.4% 14.7% 16.4% 5.4% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 509,878 Passenger miles per mile of road 76,980 Miles second and additional mam track 10 Miles yards and sidings 110 See page 182. OP RAILROADS. 129 St. JOSEPH & GRAND ISLAND RY. AVER. MILES YEAR OPERATED GROB9 EARNINGS SURPLUS 1897-8 ■ 251 81,232.508 »2fl8,651 1898-9 \ 308 1,261,060 174,156 1899-n ; 312 1,404,695 218,637 1900-1 , 312 1,399,955 400,284 STOCK OUTBTANDTNQ BONDS OUTSTANDING January ], 1902. June 30, 1901. Common S4,600,000 Fixed Interest $3,500,000 Preferred 1st (5%) 5,500,000 Preferred 2nd (4%) 3,500,000 CAPITALIZATION. TOTAL PER MILE Stock $13,600,000 843,589 Bonds 3,500,000 11,218 Total 17,100,000 54,807 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 312 TOTAL PER MILE Gross Earnings .■ 81,399,955 84,487 Operating Expenses 811,655 2,601 Net Earnings 588,300 1,886 Fixed Charges 188 016 602 Surplus 400,284 1,284 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way 8147,633 $473 Maintenance of Equipment. 82,978 266 Conducting Transportation 518,138 1,660 General Expenses 62,906 201 Ratio of operating expenses to gross earnings, 57.9 per cent. Fixed Charges above include but 3 per cent, on the company's bonds. Since January 1, 1902, the rate of interest on these bonds has been at the rate of 4 per cent, per annum. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses 16.4% 23.8% 24.4% 25.6% For Conducting Transportation and General Expenses 41.5% 47.3% 47.8% 35.0% For Fixed Charges 13.4% 13.1% 13.8% 16.0% For Surplus 28.7% 15.8% 14.0% 24.4% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 254,397 Passenger miles per mile of road 28,778 Miles yards and sidings 46 See page 183. 130 THE EARNING POWER ST. LOUIS & SAN FRANCISCO R.R. AVER. MILES TEAR OPERATED GROSS EARNINGS BTJRPLITS 1895-6 1,163 S6,059,372 1896-7 1,163 5,993,336 $356,379 1897-8 1,221 6,886,468 686,446 1898-9 1,334 7,226,662 584,800 1899-0 1,400 7,983,246 974,259 1900-1 1,687 10,173,697 1,809,856 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $29,000,000 Fixed Interest $46,471,125 Preferred 1st (4%) 5,000,000 See Note, page 183, as to Refund- , Preferred 2d (4%) 16,000,000 ing Bonds^ CAPITALIZATION. TOTAL PER MILE Stock $50,000,000 $29,638 Bonds 46,471,125 27,546 Total 96,471,125 57,184 The St. Louis & San Francisco paid in 1900-1 $75,097 in rentals (included in Fixed Charges below) . INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 1,687. TOTAL PER MILE Gross Earnings $10,173,697 $6,032 Operating Expenses 5,845.007 3,466 Net Earnings 4,328,690 2,666 Miscellaneous Receipts 111,170 65 Total Net Income 4,439,860 2,631 Fixed Charges 2,630,004 1,559 Surplus 1,809,856 1,072 OPERATING EXPENSES. TOTAL PER MILP Maintenance of Way $1,317,489 $781 Maintenance of Equipment 957,040 567 Conducting Transportation 3,269,171 1,938 General Expenses 301,308 179 Ratio of operating expenses to gross earnings, 57.4 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 22 . 1 % 20 . 5% 20 . 2% 19.9% 19.8% For Conducting Transportation and General Expenses 34.7% 37.3% 39.2% 37.9% 37.9% For Fixed Charges 25.5% 30.0% 32.5% 32.1% 36.2% ForSurplus 17.7% 12.2% .8.1% 10.1% 6.1% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 406,321 Passenger miles per mile of road 60,441 Miles yards and sidings 300 See page 183, OP RAILROADS. 131 ST. LOUIS SOUTHWESTERN RY. AVER, MILES TEAR GROSS EARNINGS SURPLnS 1895-6 1,223 $4,904,490 Deficit, 8177,850 1896-7 1,223 4,743,646 Deficit, 63,188 1897-8 1,223 5,279,333 157,293 1898-9 - 1,260 5,862,338 759,677 1899-0 1,258 5,908,284 835,182 1900-1 1,275 7,387,174 1,813,799 STOCK OUTSTANDING January 1, 1902. Common $16,600,000 Prcferwd (5%) 20,000,000 Income Bonds (4%) 10,000,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest 820,339,000 Equipment 924,636 CAPITALIZATION. TOTAL Stock 846,500,000 Bonds 21,263,538 Total 67,763,636 PER MILE 836,470 16,677 53,147 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 1,275. TOTAL PER MILS Gross Earnings 87,387,174 85,792 Operating Expenses 4,632,892 3,633 Net Earnings 2,754,282 2,169 Miscellaneous Receipts 82,195 65 Total Net Income 2,836,477 2,224 Fixed Caiarges 1,022,678 802 Surplus 1,813,799 1,422 OPERATING EXPENSES. TOTAL Maintenance of Wajr 81,080,320 Maintenance of Equipment 672,139 Conducting Transportation 2,499,143 General Expenses 381,289 Ratio of operating expenses to gross earnings, 62.7 per cent. PER MILE $847 627 1,960 299 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses.... 23. 4% 29.1% 29.4% 34.2% 37.5% For Conducting Transportation and General Expenses 38 . 5% 40 . 1 % 41,3% 44 . 6% 45 , 4% For Fixed Charges 13,7% 16,8% 16.4% 18.1% 20.1% For Surplus 24,4% 14,0% 12,9% 3,1% Deficit 100,0% 100,0% 100,0% 100,0% YEAR 1900-1, Ton miles per mile of road 367,571 Passenger miles per mile of road 45,477 Miles yards and sidings 248 See page 185. 13* THE EARNING POWEfe TEXAS & PACIFIC RY. YEAR 1896 1897 1898 1899 1900 AVER. MILES OPERATED 1,499 1,499 1,499 1,492 1,527 STOCK OUTSTANDlNa January 1, 1902. Common J38,720,280 Income Bonds (5%) 24,979,300 GROSS EARNINGS 86.825,145 7,588,549 8,006,503 8,300,185 9,751,121 SURPLUS £218,299 764,315 946,888 1,048,686 1,792,685 BONDS OUTSTANDING December 31, 1900. Fixed Interest 828,179,094 Equipment 290,788 Other 283,432 CAPITALIZATION. TOTAL PER MILE Stock and Income Bonds $63,699,580 $41,715 Bonds 28,753,314 18,825 Total 92,452,894 60,540 INCOME ACCOUNT TEAR ENDING DECEMBER 31, 1900. Average miles operated, 1,527. TOTAL PER MILE Gross Earnings $9,751,121 $6,385 Operating Expenses 6,581,631 4,310 Net Earnings 3,169,490 2,075 Miscellaneous Receipts 189,178 124 Total Net Income 3,358,668 2,199 Fixed Charges 1,566,083 1,025 Surplus 1,792,585 1,174 OPERATING EXPENSES. TOTAL Maintenance of Waj; 81,510,011 Maintenance of Equipment 1,122,834 Conducting Transportation 3,671,582 General Expenses 277,203 Ratio of operating expenses to gross earnings, 67.5 per cent. PER MILE $988 735 2,404 182 APPROPRIATION OP GROSS INCOME. 1900 1899 For Maintenance Expenses 26.4% 27.0% For Conducting Transportation and General Expenses. .39. 7% 42. 3% For Fixed Charges 15.7% 18. 1% For Surplus 18.2% 12.6% 100.0% 100.0% YEAR 1900. Ton miles per mile of road 438,845 Passenger miles per mile of road 56,319 Miles yards and sidings 327 See page 185. OF RAILROADS, ^33 GREAT NORTHERN EY; AVER. MILES T£AS OPEBATED OBOSa EAKNINQS BURPLUS 1895-6 1896-7 1897-8 1898-9 1S99-0 1900-1 4,374 4,415 4,466 4,786 5,076 5,202 $19,612,564 19,436,061 22,577,644 25,017,904 28,910,789 28,350,690 $3,233,944 2,691,396 6,565,235 8,223,641 12,120,805 9,388,982 -"I STOCK OUTSTANDING Janviary 1, 1902. BONDS OTJTSTANDING June 30, 1901. ....$123,716,750 Fixed Interest .$96,683,454 Includea 825,000,000 sold in 1901 to Btookholders at par. Includes bonds of proprietary com- panies. CAPITALIZATION. TOTAL PER MILE Stock $123,716,750 $23,782 Bonds 96,683,454 18,585 Total 220,400,200 42,367 The Great Northern paid in 1900-1 $203,107 for sundry rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 5,202. TOTAL PER MILE Gross Earnings $28,350,690 $5,450 Operating Expenses 15,843,421 3,045 Net Earnings : 12,507,269 2,404 Miscellaneous Receipts 2,902,811 558 Total Net Income 15,410,080 2,962 Fixed Charges 6,021,098 1,157 Surplus 9,388,982 1,805 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $4,402,157 8846 Maintenance of Equipment 2,354,311 452 Conducting Transportation 7,751,339 1,490 General Expenses 1,335,613 257 Ratio of operating expenses to gross earnings, 55.8 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses . . . . 23 . 2% For Conducting Transportation and General Expenses 29 . 0% For Fixed Charges 19.2% For Surplus 28.6% 19.5% 18.9% 17.8% 25.5% 18.2% 36.8% 26.4% 23.8% 30.9% 26.2% 29.2% 26.8% 1896-7 21.5% 30.7% 34.5% 13.3% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track Miles yards and sidings See page 185, 477,076 41.213 81 924 134 THE EARNING POWER IOWA CENTRAL RY. AVER. MILES TEJlB operated GEOSS EAHNING8 BUBPLtlS 1895-6 500 $1,839,708 «2S8,541 1896-7 509 1,564205 33,555 1897-8 509 1,868,349 164,069 189S-9 513 2,120,575 184,913 1899-0 513 2,325,919 175,974 1900-1 506 2,284,123 7,048 BTOCK OirrSTANDING BONDa OUTSTANDINQ January 1, 1902. June 30, 1901. Common $8,507,288 Fixed Interest $7,649 545 Preferred (5%) 5,672,418 CAPITALIZATION. TOTAL PER MILE Stock $14,179,706 $28,023 Bonds 7,649,545 15,109 Total 21,829,251 43,132 The Iowa Central paid in 1900-1 $57,960 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 506. TOTAL PER MILE Gross Earnings $2,284,123 $4,514 Operating Expenses 1,820,726 3,598 Net Earnings 463,397 916 Miscellaneous Receipts 51,244 101 Total Net Income 514,641 1,017 Fixed Charges 507,593 1,003 Surplus 7,048 14 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $632,302 $1,249 Maintenance of Equipment 282,565 558 Conducting Transportation 817,734 1,617 General Expenses 88,124 174 Ratio of operating expenses to gross earnings, 79.7 per cent. APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 1896-7 For Maintenance Expenses 39 . 0% 31.6% 31.6% 30 . 3% 28 . 8% For Conducting Transportation and General Expenses 39.0% 39.0% 38.3% 37.5% 41.1% For Fixed Charges 21.7% 19.7% 21.3% 23.4% 27.8% ForSurplus 3% 9.7% 8.8% 8.8% 2.3% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 499,007 Passenger miles per mile of road 33,962 Miles yards and sidings 116 See page 186. OF RAILROADS. 135 MINNEAPOLIS & ST. LOUIS R.R. TEAR 1895-6 1896-7 1897-8 1898-9 1899-0 1900-1 AVER. MILES OPEKATED 366 370 366 436 514 633 OBOSa EARNINGS S2,028,300 2,006,505 2,246,584 2,500,004 2,863,308 3,275,504 STrnPLUB 8331,780 325,818 410,828 458,662 414,623 553,762 STOCK OUTSTANDING January 1, 1902. Common . . ! $6,000,000 Preferred (5%) 4,000,000 BONDS OUTSTANDING June 30, 1901. Fixed Interest $18,151,000 CAPITALIZATION. TOTAL PER MILE Stock $10,000,000 $15,797 Bonds 18,151,000 28,674 Total 28,151,000 44,471 The Minneapolis & St. Louis paid in 1900-1 $56,711 in rentals (included in Fixed Charges below). INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 633. TOTAL PER MILE Gross Earnings $3,275,504 $5,174 Operating Expenses 1,848,685 2,920 Net Earnings 1,426,819 2,254 Miscellaneous Receipts 188,807 298 Total Net Income 1,615,626 2,562 Fixed Charges 1,061,864 1,677 Surplus 553,762 875 OPERATING EXPENSES. Maintenance of Way $594,754 Maintenance of Equipment 307,046 Conducting Transportation 841,363 General Expenses 105,531 Ratio of operating expenses to gross earnings, 56.4 per cent. PER MILE $939 485 1,329 166 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 For Maintenance Expenses 26 . 0% 26 . 5% 25 . 8% For Conducting Transportation and General Expenses 27 . 3% 25 . 6% 27 . 4% For Fixed Charges 30.6% 34.2% 29.6% For Surplus 16.1% 3.7% 17.2% 1897-8 25.2% 1896-7 20.3% 28.3% 31.9% 29.3% 32.5% 17.2% 15.3% 100.0% 100.0% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road Passenger miles per mile of road Miles second and additional main track Miles yards and sidings See page 186. 370,728 55,070 20 120 136 THE EARNING POWER MINNEAPOLIS, ST. PAUL & SAULT STE. MARIE RY. YEAR 1897-8 1898-9 1899-0 1900-1 aveh. miles opbbated 1,195 1,272 1,286 1,312 GROSS EARNINGS $4,132,699 4,348,585 5,151,188 4,617,076 SURPLTja £402,190 375,058 880,872 327,873 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $14,000,000 Fixed Interest $34,232,000 Preferred (7%) 7,000,000 Equipment 604,151 CAPITALIZATION. TOTAL PER_MILB Stock $21,000,000 $16,006 Bonds 34,736,151 26,475 Total 56,736,151 42,481 The "Soo" paid in 1900-1 $102,898 in rental of terminals. INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 1,312. TOTAL Gross Earnings $4,517,076 Operating Expenses 2,564,337 Net Earnings 1,952,739 Miscellaneous Receipts 20,220 Total Net Income 1,972,959 Fixed Charges 1,645,086 Surplus 327,873 OPERATING EXPENSES. TOTAL Maintenance of Way $620,495 Maintenance of Equipment 476,248 Conducting Transportation 1,351,868 General Expenses 115,726 Ratio of operating expenses to gross earnings, 66.1 per cent. $3,442 1,954 1,488 16 1,503 1,263 250 PER MILE $472 363 1,030 88 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 For Maintenance Expenses 24 . 1% 19 . 0% For Conducting Transportation and Gen- eral Expenses 32.3% 30.4% For Fixed Charges 36.2% 33.3% For Surplus 7.4% 17.3% 100.0% 100.0% 1898-9 1897-8 22.9% 20.9% 33.6% 34.7% 8.8% 32.8% 36.4% 9.9% 100.0%, 100.0% YEAR 1900-1. Ton miles per mile of road 407,687 Passenger miles per mile of road 30,005 Miles yards and sidings 171 See page 187. OF RAILROADS. 137 NORTHERN PACIFIC RY. AVER. MILES rEAK OPERATED GROSS EARNINGS SURPLUS 1897-8 1898-9 1899-0 1900-1 4,362 4,579 4,714 5,100 $23,679,718 26,048,673 30,021,318 32,560,984 86,709,584 7,809,902 9,483,813 9,213,904 STOCK OUTSTANDING June 30, 1901. Common 880,000,000 Preferred* (4%) 75,000,000 *See page 187 as to the retirement of the preferred stock. BONDS OUTSTANDING June 30, 1901. Fixed Interest $327,925,789 CAPITALIZATION. TOTAL PER MILE Stock . ; '. $155,000,000 830,392 Bonds 172,925,789 33,907 Total 327,925,789 64,299 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 5,100. TOTAL Gross Earnings $32,560,984 Operating Expenses 16,640,144 Net Earnings 15,920,840 Miscellaneous Receipts 743.787 Total Net Income 16,664,627 Fixed Charges 7,450,723 Surplus 9,213,904 OPERATING EXPENSES. TOTAL Maintenance of Way $5,249,068 Maintenance of Equipment 2,455,823 Conducting Transportation 8,061,717 General Expenses 873,536 Ratio of operating expenses to gross earnings, 51.1 per cent. PER MILE $6,384 3,262 3,122 145 3,267 1,460 1,807 PER MILE $1,029 481 1,580 172 APPROPRIATION OF GROSS INCOME. 1900-1 1899-0 1898-9 1897-8 For Maintenance Expenses 23.1% 23.1% 20.2% 19.7% For Conducting Transportation and General Expenses 26.9% 23.7% 25.4% 25.3% For Fixed Charges 22.3% 22.2% 25.4% 29.2% For Surplus 27.7% 31.0% 29.0% 25.8% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 478,561 Passenger miles per mUe of road 60,552 Miles second and additional main track 61 Miles spurs, yards and sidings 1,328 Bee page 187. 138 THE EARNING POWER UNION PACIFIC R.R. AVER. MILEB TEAR OPERATED GROSS EARNINGS* SURPLTTSt 1898-9 4,883 $33,647,032 $9,562,430 1899-0 5,427 38,308,420 12,147,587 1900-1 5,543 42,688.835 13,157,780 *Not including earnings of Water Lines. tAfter dividends on Oregon R. R. & Navigation Co. preferred stock and interest on Oregon Short Line Income Bonds. STOCK OUTSTANDING BONDS OUTSTANDING June 30, 1901. June 30, 1901. Common $102,030,000 Fixed Interest $248,992,300 Preferred (4%) 99,508,900 Includes Convertible Bonds. Other.. 99,808 CAPITALIZATION TOTAL PER MILE Stock $201,638,708 $36,377 Bonds 248,992,300 44,920 Total 450,631.008 81,297 INCOME ACCOUNT YEAR ENDING JUNE 30, 1901. Average miles operated, 5,543. TOTAL PER MILE Gross Earmngs $42,688,835 $7,701 Operating Expenses 22.501,558 4.059 Net Earnings 20,187,277 3.642 Miscellaneous Receipts 3.235,025 583 Total Net Income 23.422,302 4,225 Fixed Charges 10,264,522 1,851 Surplus 13,157,780 2,374 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $5,405,752 $975 Maintenance of Equipment 4,463,866 805 Conducting Transportation 11,575,434 2,088 General Expenses 1,056,506 191 Ratio of operating expenses to gross earnings, 52.7 per cent. Miscellaneous Receipts above include net profits of Water Lines. Fixed Charges above include $440,000 dividends on Oregon R. R. and Naviga- tion Co. preferred stock, and $952,890 interest on Oregon Short Line Income Bonds. Fixed Charges also include $626,380. or two months' interest on First Lien Convertible 4 per cent. Bonds. Against this latter charge dividends accruing from April 1 to June 30, 1901, amounting to $781,080, have been coUected since the close of the fiscal year. APPROPRIATION OF GROSS INCOME. 1900-1 For Maintenance Expe nses 21 . 4% For Conducting Transportation and General Expenses 27 . 6% For Fixed Charges 22 . 3% For Surplus 28.8% 100.0% 100.0% 100.0% TEAR 1900-1. Ton miles per mile of road 527,806 Passenger miles per mile of road 61,867 Miles second and additional main track 75 Miles yards and sidings 1,357 See page 188. OF RAILROADS. 139 SANTA FE, PRESCOTT & PHCENIX RY. AVER. MILES TEAR OPEEATED GROSS BABNINOS BCHPLtIS 1895-6 198 $584,208 $87,726 1896-7 198 656,188 95,947 1897-8 198 764,124 152,416 1898-9 216 875,288 172,071 1899-0 224 987,132 291,323 1900-1 224 956,623 260,658 STOCK OUTSTANDING BONDS OCTSTANDINQ January 1, 1902. June 30, 1901. Common $7,904,000 Fixed Interest $4,940,000 Income Bonds (5%) 2,964,000 CAPITALIZATION. TOTAL PER MILE Stock . . . ; $10,868,000 $48,518 Bonds 4,940,000 22,153 Total 15,808,000 70,671 Included in Fixed Charges below is $17,638, paid in 1900-1 in rentals. INCOME ACCOUNT YE.4R ENDING JUNE 30, 1901. Average miles operated, 224. TOTAL Gross Earnings $956,623 Operating Expenses 439,974 Net Earnings 516,649 Miscellaneous Receipts 9,062 Total Net Income 525,711 Fixed Charges 266,058 Surplus 260,653 OPERATING EXPENSES. TOTAL Maintenance of Way $123,112 Maintenance of Equipment 49,065 Conducting Transportation 212,747 General Expenses 55,060 Ratio of operating expenses to gross earnings, 45.9 per cent. PER MILE $4,271 1,965 2,306 40 2,346 1,183 1,163 PER MILE $549 219 945 241 APPROPRIATION OF GROSS INCOME. 1900-1 1S99-0 1898-9 1897-8 1896-7 For Maintenance Expenses. .. .17.8% 17.7% 22.2% 18.4% 16.1% For Conducting Transportation and General Expenses 27 . 5% 26 . 3% 29 . 2% 29 . 3% 31 . 5% For Fixed Charges 27.4% 26.6% 29.2% 32.3% 37.6% ForSurplus 27.3% 29.4% 19.4% 20.0% 14.8% 100.0% 100.0% 100.0% 100.0% 100.0% YEAR 1900-1. Ton miles per mile of road 70,843 Passenger miles per mile of road 21,155 Miles sidings and spurs 25 See page 189. 140 THE EARNING POWER SOUTHERN PACIFIC CO. AVER. MILES TEAR OPERATED OROBB EARNINGS* 1899-0 8,215 $65,279,622 1900-1 8,655 73,163,658 *Not including earnings of "Steamships," STOCK OTTTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common 8197,847,788 Fixed Interest* $353,062,029 ♦Includes $13,370,000 bonds held in Sinking Funds; also $9,562,625 bonds held in Treasury; also includes $6,354,000 Income Bonds. CAPITALIZATION. TOTAL PER MILE Stock $197,847,788 $22,859 Bonds 353,062,029 40792 Total 550,909,817 63,651 Included in Fixed Charges below is $1,343,567 paid in 1900-1 in rentals. INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. (Southern Pacific Company and Proprietary Companies.) Average miles operated, 8,655. TOTAL PER MILE Gross Earnings $73,163,558 $8,4,53 Operating Expenses 45,989,222 5,313 Net Earnings 27,174,336 3,140 Miscellaneous Receipts 4,835,309 558 Total Net Income 32,009,645 3,698 Fixed Charges 21,517,133 2,486 Surplus 10,492,512 1,212 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $10,174,729 $1,175 Maintenance of Equipment 7,805,270 901 Conducting Transportation 25,968,950 3,000 General Expenses 2,040,273 236 Ratio of operating expenses to gross earnings, 62.8 per cent. Miscellaneous Receipts above include profit on "Steamships." Fixed Charges above include $931,057 paid account Sinking Funds, and $465,609 advanced to the San Antonio & Aransas Pass Railway Co. APPROPRIATION OF GROSS INCOME. 1900 For Maintenance Expenses ^^-^S For Conducting Transportation and General Expenses 3^-^% For Fixed Charges ^^-^^ For Surplus 13 . 6% 100.0% TEAR 1900-1. Ton miles per mile of road 563,056 Passenger miles per mile of road 108,046 Miles second and additional main track 107 Miles yards and sidings 2,105 See page 189. AVER MILES OPEHATED GEOBS EARNINQ8 BTJRPLUS 6,476 6,567 6,681 7,000 7,563 , $20,681,597 24,049,535 26,138,977 29,230,038 30,855,203 $1,706,773 3,861,115 4,124,418 6,563,688 5,736,965 OP RAILROADS. I4I CANADIAN PACIFIC RY. TEAR 1896 1897 1898 1899 1900-1 STOCK OUTSTANDING BONDS OUTSTANDING January 1, 1902. June 30, 1901. Common $65,000,000 Fixed Interest $65,069,080 Preferred (4%) 31,171,000 Debenture Stock 60,369,083 CAPITALIZATION. TOTAL PER MILE Stock $96,171,000 $12,715 Debenture Stock and Bonds 125,438,163 16,685 Total 221,609,163 29,300 The Canadian Pacific paid in 1900-1 $507,316 in rentals (included in Fixed Charges below). INCOME ACCOUNT TEAR ENDING JUNE 30, 1901. Average miles operated, 7,563. TOTAL PER MILE Gross Earnings $30,865,203 $4,079 Operating Expenses 18,745,828 2,478 Net Earnings 12,109,375 1,601 Miscellaneous Receipts 933,425 123 Total Net Income 13,042,800 1,721 Fixed Charges 7,305,835 966 Surplus 5,736,965 758 The classification of operating expenses was not made in accordance with the rules prescribed by the Interstate Commerce Commission. Ratio of operating expenses to gross earnings, 60.7 per cent. APPROPRIATION OF GROSS INCOME. 1900 ' For Maintenance Expenses ) , _ For Conducting Transportation and General Expenses 5 oo . y /o For Fixed Charges 22.9% For Surplus 18. 2% 100.0% TEAR 1900-1. Ton miles per mile of road 315,170 Passenger miles per mile of road 55,448 Miles yards and sidings 860 See page 190. NOTES. BANGOR & AROOSTOOK R.R. Following are given the gross and net earnings for the period Jtdy I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period of the previous year are given : igoi-2 1900-1 Gross $693,090 $596,087 Net 275,683 236,716 The preferred stock is entitled to non-cumulative dividends at the rate of 5 per cent, per annum. From the surplus of 1900-1, $80,000 was set aside for im- provements. The State of Maine refunds 95 per cent, of all taxes levied. In August, 1 90 1, the directors authorized a consolidated mortgage for $20,000,000, of which about $12,500,000 were to be used or reserved to take up the outstanding bonds and the preferred stock, $3,000,000 for improvements over a series of years and the remaining $4,500,000 for extensions when demanded by business conditions and subject to the authority of the Legislature. The new bonds run for fifty years and bear 4 per cent, interest. In November, 1901, the citizens of Aroostook County, Me., voted to sell to the company the county's holding ($728,000) of the preferred stock. The total amount of preferred stock listed on the New York Stock Exchange as of January 15, 1902, was $9,057,600. BOSTON & MAINE R.R. Following are given the gross and net earnings for the period July I, 1901, to September 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $8,680,462 $8,363,583 Net 2,870,647 2,812,885 Dividends are being paid at the rate of 6 per cent, per annum on the preferred stock, which is limited to 6 per cent, and at 6f RA1LR0AD§. i43 the rate of 7 per cent, per annum on the common stock. Pre- ferred stock dividends are paid in March and September and dividends on the common, quarterly, beginning January. The Boston & Maine holds among its treasury assets $2,516,- 000 of the capital stock of the Maine Central and $5,454,550 of the common stock of the Fitchburg. The latter road is leased. The Boston & Maine will effect a considerable saving in interest charges through the refunding in 1906 of high rate interest bonds. CENTRAL VERMONT RY. $2,185,100 of . the $3,000,000 stock is owned by the Grand Trunk of Canada. Under a traffic contract the Grand Trunk agrees to make good any deficiency in earnings to meet interest on the $11,000,000 4 per cent, bonds, up to 30 per cent, of the Grand Trunk gross receipts from traffic interchanged. NEW YORK, NEW HAVEN & HARTFORD R. R. Following are given the gross and net earnings for the period July I, 1901, to September 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $11,207,297 $10,389,506 Net 4,010,853 3.759.493 The stock of this company is receiving quarterly dividends, in March, June, September and December, at the rate of 8 per cent, per annum. There are outstanding $16,397,200 4 per cent, debentures, exchangeable at the option of the holder "on April 1, 1903, or within 60 days thereafter, and no longer," for company's stock at par. In the official report for 1900-1 it is ■stated that there was "charged to operating expenses during the year for better- ments and new equipment to meet general depreciation the sum of $2,425,814.76." PORTLAND & RUMFORD FALLS RY. From the earnings of 1900-1 $65,000 was paid in dividends, against $40,000 paid from the earnings of 1899-0. The Portland & Rumford Falls controls the Rumford FalV & Rangely Lake R. R., 31 miles of track. 144 THE EAR>JING POWER RUTLAND R.R. Following are given the gross and net earnings for the period July I, 1901, to September 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: igoi-2 igoo-i Gross $576,093 $493,620 Net 238,002 182,070 Practically all of the common stock has been exchanged for preferred on the basis of ten shares of common for one share of preferred. The preferred stock is entitled to cumulative dividends at the rate of 7 per cent, per annum. It is said that the accumulated dividends on this stock aggregate 130 per cent. In November, 1901, the right was given to the shareholders to subscribe for new preferred stock at $90 a share, the proceeds of such new stock to be used to pay the floating debt, to pay for improvements and for extensions. On December 21, 1901, the shareholders approved a proposition to absorb by consolidation the capital stock, rights, franchises and property of the Chatham & Lebanon Valley, 58 miles. BALTIMORE & OHIO R.R. Following are given the gross and net earnings for the period July I, 1901, to December 31, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $26,036,910 $23,556,377 Net 10,081,631 7,924,829 The preferred stock is limited to non-cumulative dividends at -he fate of 4 per cent, per annum. Both the preferred and common stock are receiving 4 per cent, per annum, the dividends being payable in March and September. The Baltimore & Ohio is controlled by the Pennsylvania through ownership of stock. For the purpose of providing funds necessary for the acquisition of the Cleveland, Lorain & Wheeling, the Ohio River R.R., the Pittsburgh & Western, etc., the Baltimore & Ohio allowed the preferred and common stockholders of record December 10, 1901, to subscribe at par for new common stock to the amount of 20 per cent, of their respective holdings. On January i, 1902, the Baltimore & Ohio took over for operat- ing purposes the management of the following controlled prop- OP RAILROADS. I45 erties: Pittsburgh & Western, Pittsburgh, Cleveland & Toledo, Pittsburg, Painesville & Fairport, Pittsburgh Junction, Cleveland, Lorain & Wheeling, Cleveland Terminal & Valley, and Ohio & Little Kanawha. In the fall of 190 1 the Ohio River R.R. was incorporated in the Baltimore & Ohio System. Of the surplus of 1900-1, $2,740,932 was applied to the cost of additions and improvements. BUFFALO & SUSQUEHANNA R.R. Following are given the gross and net earnings for the period of July I, 1 90 1, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross 364.055 3°2.999 Net, taxes deducted 169,953 139.977 The capital stock of this company has received dividends since 1895 of s per cent, per annum. In March and June, 1901, extra dividends each of 1} per cent, were paid. The fixed charges for 190 1-2 will be larger than they were in 1 900- 1. See below. Prior to 1900-1 about $80,000 per annum was charged to net earnings on account of sinking fund payments. In 190 1 a mortgage was made securing the First Mortgage 4 per cent. Bonds, dated April i, rpoi. This mortgage provided funds for the retirement of the 5 per cent, bonds, of which $671,000 were outstanding June 30, 1901. To provide funds for the acquisition of constituent properties and for the purchase of bonds of the Buffalo & Susquehanna Coal & Coke Co., about $2,500,000 new 4 per cent, bonds had been Issued to June 30, 1901. As of that date $525,000 of the moneys realized from the sale of these bonds was held in cash in the com- pany's treasury, to provide for the acquisition of additional prop- erties, or for additions and improvements. The properties ac- quired as above were acquired too late to have any marked effect on the earnings for the year 1900-1. BUFFALO, ROCHESTER & PITTSBURGH RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,885,611 $2,495, 61S Net 1,364,568 1,048,969 146 THE EARNING POtVER The preferred stock is entitled to non-cumulative dividends of 6 per cent, per annum. After the common stock has received 6 per cent., any further distribution of profits in any year shall be shared by both issues pro rata. The preferred is receiving 6 per cent, per annum, and the common 4 per cent. Dividends are paid February and August. From the surplus for igoo-i, $530,134 was appropriated for construction, equipment, etc.; $446,977 was so appropriated from the surplus of 1899-0. On November 18, 1901, the stockholders voted to increase the common capital stock $3,000,000. The holders of 1,000,000 5 per cent, debenture bonds were given the privilege of converting their bonds into common stock on any interest day, on thirty days' notice to the company, and they, the holders of these bonds agreed to allow the company to reduce the interest on the bonds to 4 per cent, per annum. The balance, $2,000,000 of the de- benture bonds, authorized in 1897, were made convertible, and when issued were to be offered for subscription to the stock- holders. The company will have the option of redeeming all or any of these bonds on any interest day at a premium of 2J per cent. DELAWARE, LACKAWANNA & WESTERN R.R. In 1901 7 per cent, was paid on the stock of this company. A quarterly payment of if per cent, was made in January, 1902. From the surplus of 1900, $873,362 was appropriated for new equipment. Operating expenses have for years included large expenditures for improvements. The earnings of the Coal Department were, in 1900, about as large as those of the railroad, aggregating $19,797,318. It is quite safe to say that the expenses of the Coal Department ($18,- 597,236) included large sums for improvements. Through the refunding, in the next few years, of its own bonds and those of its leased lines, the Delaware, Lackawanna & Western Tjdll effect a considerable saving in its fixed charges. ERIE R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $18,217,373 $16,146,043 Net, taxes deducted 5,934,271 4.S93.430 of railroa6s. l4t The first preferred is limited to non-cumulative dividends of 4 per cent, per annum. The second preferred is limited to non- cumulative dividends of 4 per cent, per annum. The first seini- annual dividend of li per cent, was paid on the first preferred in August, 1901. The company has the right to redeem the pre- ferred stocks at par in cash. The Erie has for years charged its operating expenses heavily for maintenance. While the -need for extraordinary charges of this nature has been great, every effort has been made by the management to better the condition of the property. In his report for 1 900-1, the president of the company stated that in 1900-1, $1,153,540, and in 1899-00, $1,177,040, had been expended for improvements, the cost of which was charged to operating expenses. The Erie owns a majority of the stock of the New York, Susque- hanna & Western R.R. Co., which road is operated separately. The Erie is interested in the stock of the Lehigh Valley R.R. Co. The 4 per cent, second preferred stock is worthy the notice of investors. Should the Erie earn 4 per cent, on its common stock, it would mean that over 32 per cent, had been earned on the second preferred. The earning power which would warrant the payment of 4 per cent, on the first preferred would be ample to give good promise of dividends on the second preferred stock, LONG ISLAND R.R. Following are given the increases in the gross and net earnings for the period July i, 1901, to November 30, 1901: Gross earnings increased $365,926 Net earnings increased 246,631 No dividends have been paid on the stock since 1896. In May, 1900, a majority of the stock was purchased by the Pennsylvania. From the surplus of 1900-1, $195,000 was appropriated for extraordinary expenditures. Work has been begun in the construction of a tunnel between the City Hall, New York, and the Flatbush Avenue Station of the Long Island R.R. in Brooklyn. The construction of the Brooklyn tunnel " will make lower Manhattan at least thirty minutes nearer " to all points on the Long Island R.R. The Long Island Extension R.R. Co. was organized on June 21, 1 90 1, to construct a double-track tunnel electrical railroad from the terminal of the Long Island R.R. at Long Island City, under the East River and Thirty-third street, making a connection with the underground station of the New York Subway at Thirty- 148 THE EARNING POWfift third Street and Fourth avenue, and having an underground sta- tion near Broadway, New York. On the completion of this tunnel line, it will be operated by the Long Island R.R. Co. NEW YORK CENTRAL & HUDSON RIVER R.R. Following are given the gross earnings for the period July i, 1 90 1, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $37,864,688 $34,464,323 Five per cent, per annum is being paid on the stock of this com- pany in quarterly dividends. The last payment of ij per cent, was made in January, 1902. In January, 1902, the authorized capital stock was increased from $115,000,000 to $150,000,000. Of the $35,000,000 (new stock), $17,250,000 will be offered in May, 1902, to stockholders for sub- scription at $125 per share. From the surplus of 1900-1, $1,500,000 was appropriated for a " Special Improvement Fund "; $2,000,000 was so appropriated from the surplus of 1899-0. In 1900 the New York Central & Hudson River R.R. Co. leased the Boston & Albany R.R. Co. for ninety-nine years, guaranteeing its bonds, and paying as an annual rental 8 per cent, on the Boston & Albany capital stock. The result of operations of the Boston & Albany is included in the statement of income account of the New York Central on page 55. The earning power of the Boston & Albany is such as to warrant the conviction that that road will of itself amply provide for the rental obligations assumed by the lessee. The New York Central owns practically all of the capital stock of the Lake Shore & Michigan Southern Ry. Co., and of the Michi- gan Central R.R. Co. The stock of these companies was acquired in exchange for New York Central 3^ per cent, bonds on the basis of $200 in bonds for $100 in Lake Shore stock, and $115 in bonds for $100 in Michigan Central stock. The equity of the New York Central in the earnings of these two roads is largely in excess of the dividends now received by it as owner of their stock. The operating expenses of the New York Central include heavy outlays of an extraordinary nature for equipment, additions, betterments, etc. Through the refunding, in the next few years, of high-rate interest bonds on its own and leased lines, the New York Central & Hudson River R.R. Co. will effect a large saving in interest charges. OF RAILROADS. I49 NEW YORK, ONTARIO & WESTERN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compari- son, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,628,932 $2,100,242 Net, taxeS'-deducted 847,602 662,356 No dividends are being paid on the stock of this company. In 1899 and 1900 the New York, Ontario & Western secured control of extensive coal properties, from which the majority of its coal tonnage is derived. The company issued $5,825,000 5 percent, gold notes secured by mortgages on the coal company's property. The policy pursued by the New York, Ontario & Western in the matter of charging its operating expenses for maintenance and improvement work has for years been most liberal. NEW YORK, SUSQUEHANNA & WESTERN R.R. Following are given the gross and net earnings for the period July I, igoi, to September 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 igoo-i Gross $1,248,611 $903,468 Net, taxes deducted 603,473 357i033 Practically all of the stock of this road is owned by the Erie R.R. Co., having been exchanged for the stock of that company. NORTHERN CENTRAL RY. Following are given the gross and net earnings for the period January i, 1901, to November 30, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901 190C Gross $7,624,108 $7,088,708 Net 2,351,839 2,o77'g39 The stock of this company receives 8 per cent, per annum in semi-annual instalments, January and July. The majority of the stock is owned by the Pennsylvania R. R. Co. Operating expenses have for years been heavily charged for betterments. From the surplus of 1900, $1,011,451 was appropriated io- "Extraordinary Expenditures." 150 THE EARNING POWER PENNSYLVANIA R.R. Following are given the gross and net earnings for the period January i, ipoi.to November 30, 1901. Forthe purpose of com- parison, the earnings for the like period the previous year are given: LINES DIRECTLY OPERATED EAST OF PITTSBURGH AND ERIE. I90I 1900 Gross $85,493,008 $77,759,008 Net 30.744.765 26,380,965 LINES DIRECTLY OPERATED WEST OF PITTSBURGH AND ERIE. Gross increased $5,196,100 Net increased 2,554,900 Dividends at the rate of 6 per cent, per annum are being paid on Pennsylvania stock in March and September. During the period from December 31, i860, to December 31, 1901, about $190,000,000 was paid out by the Pennsylvania R.R. Co. to its stockholders in cash dividends. From the surplus of 1900, $7,990,329 was appropriated to be expended for improvements, additions, etc. Large appropria- tions of a similar character were made from the surplus earnings of previous years. The operating expenses of the Pennsylvania R.R. Co. have been for years heavily charged for improvements. The Pennsylvania owns large blocks of stock of the Norfolk & Western, Chesapeake & Ohio, Baltimore & Ohio, Long Island, Erie & Western Transportation Co., all of which companies are operated separately. The Pennsylvania also owns a large majority of the capital stock of the Philadelphia, Wilmington & Baltimore, Northern Central, and Pittsburgh, Cincinnati, Chicago & St. Louis. It also owns a large interest in the West Jersey & Seashore, and all the stock of the Pennsylvania Co. The equity of the Pennsylvania in all of the above companies is extremely large, and by no means is represented by the divi- dends received by it as stockholder. The Pennsylvania R.R. Co. has large interests in other railroads operated independently, as, for example, the Grand Rapids & Indiana, the Cmcinnati & Muskingum Valley, and the Cleveland, Akron & Columbus. The Pennsylvania R.R. Co. and its controlled companies will effect a large saving in interest charges through the refunding in the next few years of high-rate interest bonds. The Income Account of the Pennsylvania Co. is given below OF RAILROADS. 151 for the year igoo. This statement includes all lines directly operated by the Pennsylvania Co. : Capital stock (owned by the Pennsylvania R.R. Co.), including increase of $19,000,000 made in December, 1900, $40,000,000. Average mileage operated (1900), 1,357. TOTAL PER MILE Gross earnings $25,407,562 $18,723 Operating expenses 17,116,649 12,613 Net earnings 8,290,913 6,110 Other receipts 2,316,008 1,706 Total net income 10,606,921 7, 816 Fixed charges 8,487,318 6,254 Surplus 2,119,603 1,562 Appropriated for improvements. ... 1,000,000 736 Balance 1,1 19,603 826 OPERATING EXPENSES. TOTAL PER MILE Maintenance of Way $4,025,260 $2,966 Maintenance of Equipment 3,859,408 2,844 Con'd Transportation 8,802,958 6,487 General 429,023 316 Ratio of operating expenses to gross earnings, 67.3 per cent. APPROPRIATION OF GROSS INCOME. 1900 For Maintenance expenses 28.4 per cent. " Con'd Trans, and Gen'l expenses 33-3 " " Fixed charges 30.6 " " Surplus 7.7 I 00 . o " Ton miles per mile of road 2,330,206 Passenger miles per mile of road 144,341 On December 30, 1901, the Pennsylvania Co. paid a, dividend of 3 per cent, on $21,000,000 stock outstanding in November, igoi. This was the first dividend paid since 1894. PHILADELPHIA, WILMINGTON & BALTIMORE R.R. Following are given the gross and net earnings for the period November i, 1900, to October 31, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1900-1 1899-0 Gross $11,808,649 811,324,249 Net 3,948,721 3,735,521 Surplus , 2 ,288,742 1,730,998 152 THE EARNING POWER The stock is receiving 7 per cent, per annum, 4 per cent, in January and 3 per cent, in July. The Pennsylvania owns practically all of the stock of this road. With a view to consolidating this company with the Balti- more & Potomac, the Pennsylvania in 1901 oifered the minority shareholders $100 a share for their stock (par $50), or three shares ($150) of Pennsylvania stock for two shares ($100) of Philadelphia, Wilmington & Baltimore stock. To effect this consolidation with the Baltimore & Potomac, the stockholders of the Philadelphia, Wilmington & Baltimore voted in January, 1902, to increase the capital stock. The earning power of this road is greatly in excess of the amount paid out each year in dividends. From the surplus of 1899-0, $1,069,642 was appropriated .for improvements and equipment. From the surplus of 1900-1, $1,461,387 was so ap- propriated. PITTSBURGH & LAKE ERIE R.R. The stock of this road is receiving 10 per cent, per annum in semi-annual pajrments, February and August. A majority of the stock is owned by the Lake Shore & Michigan Southern Ry. WEST JERSEY & SEASHORE R.R. Following are given the gross and net earnings for the period January i, 1901, to November 30, igoi. For the ptupose of com- parison, the earnings for the like period the previous year are given: 1901 igoo Gross $3,465,584 $3,276,084 Net 930.905 915.105 The stock is receiving s per cent, per annum, payable semi- annually, March and September. The Pennsylvania R. R. owns a large interest in the stock of this road. From the surplus of 1900, $272,888 was appropriated for extraor- dinary expenditures. ANN ARBOR R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. OF RAILROADS. 153 For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 igoo-i Gross $801,169 $715,265 Net 255,884 163,855 The preferred stock is entitled to and is limited to non-cumu- lative dividends not exceeding 5 per cent, per annum. No divi- dends have been paid on this stock. The operating expenses have been heavily charged for improve- ments, etc. , since the organization of the present company. In the several yearly official reports, the following sums have been specifically mentioned as having been appropriated from earnings and included in operating expenses for " new and addi- tional property": Year 1897-8 $111,000 " 1898-9 265,000 " 1899-0 279,000 " 1900-1 179,000 CHICAGO & ALTON RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $4,142,332 $3,972,101 Net, taxes deducted 1,418,356 1,349,880 The preferred stock is entitled to non-cumulative dividends at the rate of 4 per cent, per annum. Pull dividends are being pa,id on this stock in semi-annual instalments, in January and Jtdy. From April, 1899, to June 30, 1901, $8,225,740 had been ex- pended for various improvements and for equipment. In the re- port for 1 900- 1 it was stated that to complete the work of grade reductions, interlocking, track elevation, etc., would involve about $3,000,000. Over one-half of this work has been authorized and begun since the close of the last fiscal year. This report also states that on completion of this work a material decrease in conducting transportation and maintenance expenses can be expected. CHICAGO & EASTERN ILLINOIS R.R. Following are given the gross and net earnings for the period Jtily I, 1901, to November 30, 1901. For the purpose of com- , 154 THE EARNING POWER parison, the eaminfr^ for the like period the previous year are given: 1901-2 1900-1 Gross $2,579,586 $2,332,254 Net 1,171,520 93°. 957 Surplus 604,459 378,445 The preferred stock is entitled to and is limited to non-cumu- lative dividends of 6 per cent, per annum. Both the preferred and common stocks are receiving 6 per cent, per annum. Preferred dividends are paid quarterly beginning January. Common divi- dends are paid in January and July. An interesting comparison can be made of the bonds and stocks of the Chicago & Eastern Illinois and of the Buffalo, Rochester & Pittsburgh. From the surplus for 1900-1, $317,245 was appropriated for new construction and permanent betterments; $129,205 was so appro- priated from the surplus of 1899-0. CHICAGO & NORTHWESTERN RY. Following are given the gross earnings for the period June I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $24,965,330 $22,867,625 The preferred stock is entitled to non-cumulative dividends of 7 per cent, per annum. After the common has received 7 per cent., the preferred receives 3 per cent, additional. After 10 per cent, has been paid on the common, both issues share alike. The preferred is receiving 7 per cent, per annum (quarterly January) and the common 6 per cent, per annum (January and July). The Northwestern will save annually in interest charges over $1,000,000 through the refunding in the next thirteen years of high-rate interest bonds. Considerable additional saving will be made in subsequent years. From the surplus for 1900-1, $4,169,526 was appropriated for construction, improvements, etc.; $4,542,042 was so appropriated from the surplus of 1899-0. The equity of the Northwestern in the undivided surplus of the Chicago, St. Paul, Minneapolis & Omaha Ry. is considerable. Comparison between the Northwestern and St. Paul shows: 1. That operating 1,000 miles less of road, the Northwestem's gross income was greater in 1900-1 than was St. Paul's. 2. That the Northwestern has for years appropriated from earnings relatively larger sums for improvements, etc. 3. That, while its average rate of dividends has been higher, OF RAILROADS. 155 the Northwestern has paid out in dividends a smaller amount of money than has the St. Paul. 4. That the St. Paul has, during its last six fiscal years, earned $221,000,000 gross, and paid out in dividends $28,000,000, or 12.7 per cent, of the gross income. The Northwestern earned for the same period $231,000,000, and paid in dividends $22,000,000, or 9 per cent, of its gross income. 5. That after the payment of interest, taxes and sinking fund charges, and all operating expenses, other than maintenance, the Northwestern has had available for maintenance and improve- ments, and for other corporate uses, $74,500,000 of its gross in- come for the six years. The St. Paul has had available in like manner, $70,000,000. CHICAGO, BURLINGTON & QUINCY R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, igoi. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $24,223,664 $22,355,043 Net 9.752.385 8.816,783 Surplus 5,752,385 4,830,482 During the next twelve years the Burlington will save through refunding high-rate interest bonds over one and one-quarter million dollars in interest charges. An additional and consid- erable saving will be made in subsequent years. The control of the Burlington is now vested in the Northern Pacific Ry. and the Great Northern Ry. These latter companies issued in 1901 theirjoint bonds in exchange for Burlington stock on the basis of $200 in 4 per cent, bonds for $100 in Burlington stock. On Jiuie 30, 1901, there were 1,848 miles of standard gauge and 178 miles of narrow gauge railroad in the system on which no bonds were outstanding. An interesting comparison can be made between the earnings and expenses for 1900-1 of the Burlington and St. Paul. The gross per mile was about the same; the maintenance expenses per mile were similar (including in St. Paul's expenses the $2,296,- 256 set aside for "Renewal and Improvement Account" and for "Additional Equipment") ; the conducting transportation and general expenses per mile were similar; the fixed charges per mile (eliminating, in the case of Burlington, the sinking fund charges) were similar; the surplus for Burlington (not considering sinking fund charges) was $1,206 per mile, and that of St. Paul, $1,258 per mile. The total capital stock per mile operated was $14,260 for Burlington, and $15,430 for St. Paul. Each road will save considerably in interest charges through refunding. 156 THE EARNING POWER CHICAGO GREAT WESTERN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $3,393,299 $3,047,870 Net 1,032,184 1,009,764 The debenture stock is guaranteed 4 per cent, per annum. The preferred A stock is entitled to and is limited to non-cumu- lative dividends of 5 per cent, per annum. The preferred B stock is entitled to and is limited to non-cumu- lative dividends of 4 per cent, per annum. The preferred stock A is receiving 5 per cent, per annum. Divi- dends are paid in January and July. After the payment from the surplus of 1900-01, of 5 percent, on the preferred A stock, there remained a deficit. CHICAGO, INDIANAPOLIS & LOUISVILLE RY. Following are given the gross and net earnings for the period July I, 1 90 1, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $2,012,481 $1,761,736 Net, taxes deducted 839,517 670,285 The preferred stock is limited to non-cumulative dividends of 4 per cent, per annum. Dividends at the rate of 4 per cent, per annum are now being paid on the preferred, in April and October. For several years the operating expenses of the "Monon" have been liberally charged for maintenance. CHICAGO, MILWAUKEE & ST. PAUL RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com parison, the earnings for the like period the previous year ar given : 1901-2 1900-1 Gross $20,394,996 $18,610,322 Net, taxes deducted 7.556,079 6,930,589 After the payment of 7 per cent, per annum on both the pre- ferred and common, both issues share alike. The preferred is re- OF RAILROADS. 1S7 ceiving 7 per cent, per annum, and the common 6 per cent, per annum. Dividends are paid in April and October. The St Paul will save in interest charges over «i,ooo,ooo tiirougn the refunding, during the next thirteen years, of high-rate mterest bonds. Coniiderable additional savmg will be effected m subse- '^'^From^^he earnings of 1900-1, $2,296,256 was set aside for im- provements, equipment, etc.; $3,025,305 was so set aside m 1899-0. See "notes" in re "Burlington," "Northwestern^ As of Tune 30 1901, there were outstanding $6,494,000 7 per cent, bonds convertible into preferred stock of the company. In 1900-1, $4,203,500 bonds were converted into preferred stock. CHICAGO, ROCK ISLAND & PACIFIC RY. Following are given the gross and net earnings for the period April I 1901, to November 30, 1901. For the purpose of com- parison, the earnings of the like period the previous year are given. 1901-2 1900-1 Gross $20,248,807 $17,669,803 Net. taxes'deducted 7.409, 71^ ^'llfln^ Surplus 4,857,71^ 3.638,204 This stock is receiving 5 per cent, per annum, 4 per ^6"*; of^^y^^l^i'^,^ is paid from earnings and i per cent, from an accumulated surplus fund Dividend periods: quarterly, February. On Tuly I 1917. $12,500,000 6 per cent, bonds will mature. rhriugh its ownership of stock of the Burlington, Cedar Rapids & Northern, the Rock Island has a considerable equity m the undivided earnings of that road. j i.- v The Rock Island has recently made extensions to its road which will add greatly to the strength of the system. CHICAGO, ST. PAUL, MINNEAPOLIS & OMAHA RY, Following are given the gross earnings for the period January i, 1901 to ?fovember 3°. 4°i- ^^r the purpose of comparison, the earnings for the like period the previous year are given. 1901 19°° p $10,216,142 $9,452,246 The preferred stock has a prior right to dividends of 7 per cent per annum The common is never to receive more than is paid on the preferred The preferred is receiving 7 per cent and the common 5 per cent per^annum. Dividends on the preferred are paS r Febmary aSd August. Common stock dividends are paid in February. IjS TiiE EARNING POWfiR The bonds of this road bear interest of from 5 per cent, to 8 per cent., and mature between 1908 and 1930. In 1898, i8gg and igoo, there was appropriated from the stir- plus earnings for each year, $420,173, $500, oor and $500,000 respectively to be used for additions and improvements. The "Omaha" had unsold on December 31, 1900, 298,828 acres of land. The net income from all grants for the year igoo was $71,012. The majority of the capital stock is owned by the Chicago & Northwestern. CHICAGO TERMINAL TRANSFER R.R. Following are given the gross and jiet earnings for the period July I, 1 90 1, to November 30, igoi. For the purpose of com- parison, the earnings for the like period the previous year are given : igoi-2 igoo-i Gross $670, g38 $599. 53 = Net 327.313 304.811 This company owns in fee, large and valuable tracts of land in and adjacent to the city of Chicago; also valuable terminals and dock property in that city. CINCINNATI & MUSKINGUM VALLEY R.R. The capital stock is controlled in the interest of the Pennsyl- vania. That road also owns a majority of the bonds of the Cin- cinnati & Muskingum Valley R.R. In 1900, 6 per cent, was paid on the stock from accumulated surplus. CINCINNATI, HAMILTON & DAYTON RY. The preferred stock shares with the common after 5 per cent, has been paid on both issues in any year. The preferred stock is receiving 5 per cent., the dividends being paid quarterly, be- ginning February. The common is not receiving dividends. The Cincinnati, Hamilton & Dayton will effect considerable saving in interest charges through refunding, in the next ten years, of high-rate interest bonds. The stock of the Cincinnati, New Orleans & Texas Pacific is controlled in the interest of this company and the Southern Ry. Co. All the capital stock of the Indiana, Decatur & Western is held in the interest of the Cincinnati, Hamilton & Dayton, 6f EAlLROAflS. 159 CLEVELAND & MARIETTA RY. The majority of the capital stock is owned by the Pennsylvania R.R. Co. The official report for 1900 stated that operating expenses for that year included extraordinary expenditures amounting to $45,460- CLEVELAND, AKRON & COLUMBUS RY. A dividend of 2 per cent, was paid on the stock September 10, 1901. The Pennsylvania R.R. Co. owns a majority of the capital stock. From the surplus of 1900-1, $40,533 was appropriated for better- ments. CLEVELAND, CINCINNATI, CHICAGO & ST. LOUIS RY. Following are given the gross and net earnings for the period July i, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $8,388,762 $7,608,492 Net, taxes deducted 2,430,562 2,292,506 Surplus 1,267,025 1,075,422 The preferred is receiving 5 per cent, per annum, and the com- mon 4 per cent, per annum. Preferred dividends are paid quar- terly, beginning January, and common dividends are paid ip March and September. The operating expenses have for years been liberally charged for maintenance. From the surplus for 1900-1, $567,852 was appropriated for improvements, equipment, etc. From the surplus of 1899-0, $840,943 was appropriated to extinguish equipment obligations. It will be found interesting to compare "Big Four" common stock with Southern Ry. preferred stock with reference to the "margin of safety" for dividends, and the ability of the two roads to pay dividends. The "Big Four" owns a majority of the stock of the Peoria & Eastern. It is understood that the control of the "Big Four" is held in the interest of the New York Central & Hudson River R.R. See Lake Shore & Michigan Southern. l6o THE EARNING POWER CLEVELAND, LORAIN & WHEELING RY. Following are given the gross earnings for the period July i, 1901, to December '31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $1,348,219 $1,019,246 The preferred stock is entitled to 5 per cent, per annum, and shares with the common stock after 5 per cent, has been paid on that issue. No dividends are being paid at this time. The operating expenses were in 1900-1 and 1899-0 heavily sur- charged for improvements. In each year an average of over $2,000 per mile was expended for maintenance of way. The Baltimore & Ohio owned, on June 30, 1901, $2,699,700 preferred and $6,670,700 common stock of the Cleveland, Lorain & Wheeling. DETROIT & MACKINAC RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $331,308 $336,918 Net, taxes deducted 63,861 96,564 Both classes of stock are at present held under a voting trust agreement. EVANSVILLE & TERRE HAUTE R.R. Following are given the gross earnings for the period July i, 1901, to December 31, 1901. For the ptirpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $760,530 $743,480 The preferred stock is limited to non-cumulative dividends of 5 per cent., which amount it is now receiving. Dividends are paid in April and October. No dividends are being paid on the common stock. The Evansville & Terre Haute owns the $2,000,000 capital stock of the Evansville & Indianapolis. The gross earnings of the latter road are exceedingly small, and its maintenance expenses are likewise exceedingly small. The average deficit of the Evansville & Indianapolis for the past six years has been over $75,000 per annum. The payment of OP RAILROADS. l6l the deficits of this road has proved a serious burden to the Evans- ville & Terre Haute. The maintenance expenses of the Evansville & Terre Haute have been Hberally charged for several years. GRAND RAPIDS & INDIANA RY. In 1901 two dividends, each of i per cent., were paid in April and October. The Pennsylvania controls the operation of this road through ownership of a large amount of the capital stock. From the surplus of 1900, $102,692 was appropriated for ex- traordinary expenses. This amount included $30,000 set aside to cover the cost of a serious accident which occurred August 15, 1900. HOCKING VALLEY RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,312,124 $2,034,903 Net, taxes deducted 964,094 85S,o49 Surplus 628,688 502,409 After 4 per cent, on both the common and preferred shall have been paid for any fiscal year, further dividends for such year shall be for the equal benefit of both stocks. Four per cent, is being paid on the preferred in January and July. The common stock is receiving semi-annual dividends in January and July at the rate of 3 per cent, per annum. A liberal policy has been pursued in the matter of charging operating expenses for improvement work. In June, igoi, all excepting $54,100 common, and $11,600 pre- ferred stock of the Toledo & Ohio Central had been acquired m the interest of the Hocking Valley. , Considerable saving in interest charges will be made m the next few years, through refunding high-rate interest bonds. ILLINOIS CENTRAL RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the Uke period the previous year are given: igoi-2 1900=1 Gross $17,221,904 $15,188,994 Net, taxes deducted 5,409,666 4,138,303 l62 THE EARNING POWER Dividends at the rate of 6 per cent, per annum are being paid m March and September of each year. From January j., 1850, to January i, 1901, $92,757,095 was distributed by Illinois Central in dividends. The Illinois Central has for years maintained a high standard for maintenance. The equity of the Illinois Central in the earnings of the Yazoo & Mississippi Valley is considerable. The Illinois Central owns all of the $9,104,000 5-per-cent. cumulative Second Mortgage Income Bonds of that road. In September, 1901, $1,016,079, representing a portion of the arrears of interest due and unpaid, was paid to the IlUnois Central. As of June 30, 1901, the arrears of interest due and unpaid upon these Income Bonds amounted to §5,213,522. No interest was paid in 1900-1. From the surplus of Illinois Central for 1900-1, $3,145,400 was appropriated for betterments. This appropriation followed large similar appropriations in previous years. Through the sale, in 1 901, of its stock at par to stockholders, the Illinois Central has received cash amounting to $19,200,000, the majority of which will be expended for betterments, equip- ment, second tracks, etc. In any comparison of the merits of Illinois Central stock and of for example, Louisville & Nashville stock, consideration must be given to the fact that the Illinois Central has now available, as stated, large sums to be used immediately for improvements. INDIANA, ILLINOIS & IOWA. Following are given the gross and net earnings for the period July I, 1901, to October 31, igoi. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $562,796 $400,392 Net 206,159 151. 351 The stock of this company is receiving 4 per cent, per annum, the dividends being paid quarterly, beginning January. The miles of road operated June 30, 1901, were as follows: MILES Owned 201 .68 Leased 39-43 Trackage rights 64 . 80 Total mileage operated 305-91 In 1 90 1, the Lake Shore acquired control of the "Three I's." OF RAILROADS. 163 KANAWHA & MICHIGAN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross • $465,640 $381,635 Net, taxes deducted 101,526 71.483 Surplus 48,460 21,002 The Toledo & Ohio Central controls the operation of this road, through ownership of stock. . j r In January, 1901, the expenditure was authorized of not ex- ceeding $400,000, for permanent improvements made necessary by the increase of the company's traffic. Up to the close of the fiscal year, June 30, 1901, a loan on the company's note has been contracted for $160,000 as a part of this fund for improvement work. LAKE ERIE & WESTERN R.R. Following are given the gross and net earnings, partly estimated, for the period January i, 1901, to December 31, 1901- For the purpose of comparison, the earnings for the like period the pre- vious year are given: 1901 1900 Gross $4,370,335 $4,284,780 Net, taxes deducted i,i57,573 ^'359, 9i8 Surplus 479,343 716,168 The preferred stock is entitled to non-cumulative dividends of 6 per cent, per annum. After the common stock has received 6 per cent., both classes share pro rata. The preferred stock is receiving dividends at the rate of 4 per cent, per annum, payable in January and July. _ From the surplus of 1899, $543,417 was appropriated for new equipment. In 1900 the expenditures for additions, improve- ments and new equipment were incorporated m operating expenses^^^ Shore & Michigan Southern owns a majority of each class of stock of the Lake Erie & Western. LAKE SHORE & MICHIGAN SOUTHERN RY. Following are given the gross and net earnings, partly estimated, for the period January i, 1901, to December 31, 1901- For the 164 THE EAR^fIHG POWER purpose of comparison, the earnings for the like period the pre- vious year are given: 1901 1900 Gross $29,356,000 $26,466,514 Net, taxes deducted 9,076,000 9,158,719 Surplus 7,160,000 6,658,430 Seven per cent, is being paid on this stock in semi-annual in- stallments, January and July. The New York Central & Hudson River R.R. owns practically all of the Lake Shore capital stock. The capital stock of the company has remained unchanged since 1871. Nothing has been charged to construction and equipment ac- counts since 1883. By the operation of the refunding plan, there had been retired up to January i, igoi, $36,551,000 of the various issues of old 7-per- cent, bonds. The outstanding bonds had increased in amount $6,209,000, which a reduction of $1,061,970 had been made in the annual interest charge. About $6,500,000 7-per-cent. bonds will mature December i, 1903. Operating expenses in 1900 included the following charges for extraordinary expenditures : For New equipment purchased $2,267,825 " New side tracks 92,256 " Construction and betterments 711,918 Among its assets, as of December 31, 1900, the Lake Shore held stocks of other railroads, as follows: New York, Chicago & St. Louis $2,503,000 first pfd. stock. 6,275,000 second " " " " 6,240,000 common Pittsburgh & Lake Erie R.R 4,000,100 stock. Lake Erie & Western 5,930,000 preferred. " " . . ■ 5,940,000 common. Cleveland, Cincinnati, Chic. & St. L. . . 11,224,000 stock. MICHIGAN CENTRAL R.R. Following are given the gross and net earnings, partly estimated, for the period January i, 1 901, to December 31, 1901. For the purposeof comparison, the earnings for the like period the previous year are given : 1901 1900 Gross $18,312,000 $16,730,131 Net, taxes deducted 3,756,000 3,500,641 Stu-plus 987,000 840,666 OF RAILROADS. 165 Semi-annual dividends at the rate of 4 per cent, per annum is being paid on the stock of this company in January and July. The New York Central & Hudson River owns practically all of the Michigan Central capital stock. The Michigan Central has for years adjusted its expenses to its earnings. Comparison of the income accounts for the years 1900 and 1896 shows that: Gross earnings increased $2,908,518 Maintenance expenses increased i, 574, 461 Cond. Trans, and Genl. exp 1,121,925 Fixed charges increased 154,783 From the surplus of 1900, $80,000 was appropriated for new second track. From the surplus earnings of 1898 and 1899 there were appropriated for the same purpose $70,000 and $65,000 respectively. NEW YORK, CHICAGO & ST. LOUIS R.R. Following are given the gross and net earnings, partly estimated, for the period January i, 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901 1900 Gross ' $7,485,484 $7,023,359 Net 2,273,926 1,729,681 The first preferred and second preferred stocks are entitled to and are limited to non-cumulative dividends of 5 per cent, per annum. Five per cent, was paid on the first preferred in March, 1 901; 2 per cent, was paid on the second preferred in March, 1901. In March, 1902, 5 per cent, will be paid on the first preferred. In March, 1902, 3 per cent, will be paid on the second preferred. The operating expenses of the "Nickel Plate" are not sub- divided according to the rules prescribed by the Interstate Com- merce Commission. See Lake Shore & Michigan Southern Ry. Co., page 163. PEORIA & EASTERN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $1,095,169 $975,033 Net, taxes deducted 278,150 294,788 Surplus 109.709 126,038 l66 THE EARNING POWER Interest in the Income Bonds is payable when earned on April I.. Owing to the fact that the Peoria & Eastern has used its surplus earnings toward the extinguishment of a debt to the "Big Fotu-," no interest was paid on the bonds in 1899-0 and 1900-1. The in- debtedness is now paid off. The "Big Four" owns a majority of the stock of the Peoria & Eastern. PERE MARQUETTE R.R. Following are given the gross and net earnings for the period January i, 1901, to November 30, 1901. For the purpose of com- parison , the earnings for the like period the previous year are given : 1901 1900 Gross $8,427,049 $7.555>36i Net, taxes deducted 1,961,046 1,795,431 Surplus 608,442 582,620 The preferred stock is entitled to non-cumulative dividends of 4 per cent, per annum in priority to the common stock. This stock is on a 4 per cent, basis, dividends being paid in February and August. From the surplus of 1900, $25,000 was appropriated for im- provement work. PITTSBURGH, CINCINNATI, CHICAGO & ST. LOUIS RY. Following are given the gross and net earnings for the period January i, 1901, to November 30, igoi. For the purpose of com- parison,! the earnings for the like period the previous year are given: 1901 1900 Gross $18,904,658 $17,291,436 Net, taxes deducted 5, 545, 700 4,573,563 Surplus 1,768,788 1,145,599 The preferred stock is entitled to non-cumulative dividends at the rate of 4 per cent, per annum, with the right, after 3 per cent, has been declared on the common stock, to an additional i per cent., making 5 per cent, in all. After the common stock has re- ceived 5 per cent., both classes share pro rata. The last semi- annual payment of 2 per cent, was made on the preferred Jan- uary 15, T902. On February 15, 1902, a semi-annual dividend of I J per cent, was paid on the common stock. From the surplus of 1900, $690,601 was appropriated for extraor- dinary expenditures. Maintenance expenses have for years been heavily charged for improvement work. OF RAILROADS. 167 The "Pan Handle" is controlled by the Pennsylvania and the Pennsylvania Co. A large saving in interest charges will be effected through the refunding of high-rate interest bonds, maturing in the next few- years. TERRE HAUTE & LOGANSPORT RY. From the surplus of 1900, $48,642 was appropriated for improve- ments. This road is operated in the interest of the Pennsylvania Co. TOLEDO & OHIO CENTRAL RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given; 1901-2 1900-1 Gross $1,273,262 $1,098,255 Net, taxes deducted 313,305 292,070 Surplus 115,824 121,983 The preferred stock is entitled to non-cumulative dividends of 5 per cent, per annum. After the common stock has received 5 per cent., the preferred is entitled to 2 per cent, additional. After 7 per cent, has been paid on both issues, they share alike in any further distribution of profits. Practically all the stock of this company has been exchanged for Hocking Valley Ry. shares. TOLEDO, PEORIA & WESTERN RY. Following are given the gross earnings for the period July i, 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross -. $604,125 $606,142 The Toledo, Peoria & Western is owned and managed by the Pennsylvania R.R. Co., and the Chicago, Burlington & Quincy R.R. Co. TOLEDO, ST. LOUIS & WESTERN RY. Following are given the gross earnings for the period July i, 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross 11,319.352 $1,135,514 l68 THE EARNING POWER The preferred stock is entitled to non-cumulative dividends of 4 per cent, per annum before any dividends can be paid on the common stock. After 4 per cent, has been paid on the preferred stock, all further dividends for that year shall go to the common stockholders. . ,,. . From August i, 1900, to June 30, 1901, m addition to current maintenance charges of $682,422 for the year, $673,904 was expended on Improvement Account from the fund of $750,000 provided by the Reorganization Committee. During the year 1900-1 there were set aside and charged to operating expenses the following sums: For engine renewals $42,097 For passenger and freight-car renewals 32,532 SOUTHERN INDIANA RY. Following are given the gross earnings for the period July i, igoi, to December 3i,.i90i. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross ^317.373 $192,631 This company made a mortgage dated February i, 1901, secur- ing a new issue ($5,000,000) of 4 per cent, bonds. The mortgage provided for the certification and delivery of these bonds by the trustee as follows: $3,160,000 forthwith upon receipt of the bonds, of which $1,500,000 shall be used for the purchase, exchange or retirement of $1,500,000 5 per cent, bonds of 1898, and the balance to pay the floating debt, complete improvements and provide for estimated new construction expenditures in 1901. The remaining $1,840,000 may be issued from time to time as required, viz., $340,000 to pay equipment notes; $1,000,000 for additional equipments, and $500,000 for the general uses of the company at the rate of not over $125,000 yearly. On June 30, 1901, the bonds outstanding consisted of 82,545,000 of these new fours. Equipment notes outstanding were $307,906. The amount of interest charged to net earnings in the year ending June 30, 1901, was $76,365. WABASH R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $8,345,278 S7. 567. 577 Net 2,666,867 2,278,490 OF RAILROADS. 1 69 The Debenture A Income Bonds are entitled to non-cumulative interests at the rate of 6 per cent, per annum, after the payment of which the Debenture B Income Bonds are entitled to 6 per cent. The company reserves the right to retire at par in cash either one or both issues of Debenture Bonds. The preferred stock is en- titled to non-cumulative dividends of 7 per cent, per annum. The Debenture A's ($3,500,000) are receiving 6 per cent, per annum, in semi-annual instalments, January and July. From the surplus of 1 900-1, there was appropriated $544,126 for improvements and additions. From the surplus of 1899-0, $223,664 was appropriated for improvements and additions. In 1901, control of the Wheeling & Lake Erie was acquired in the interest of the Wabash. See West Virginia Central & Pitts- biu-gh, page 174. WHEELING & LAKE ERIE R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 gross $1,535,026 $1,295,565 Net 483,652 439.528 The first preferred stock and the second preferred stock are entitled to non-cumulative dividends of 4 per cent, per annum in order of priority as mentioned. In 1901, a syndicate identified with the Wabash R.R. Co. ac- quired control of this road through purchases of its stock. Lines are in course of construction which, it is said, will add greatly to the earnings of the property. WISCONSIN CENTRAL RY. Following are given the gross and net earnings for the period July I, 1 90 1, to November 30, 1901. For the purpose of com- panson, the earnings for the like period the previous year are given: 1901-2 1900-1 ^ross $2,609,226 $2,332,130 Net 980,656 866,477 Surplus 290,321 198,252 The preferred stock is limited to non-cumulative dividends of 4 per cent, per annum. No dividends have been paid. Prom the surplus of 1899-0, $450,747 was appropriated for im- provements. A similar appropriation of $11,350 was made from the surplus of 1900-1. lyo THE EARNING POWER ATLANTA & WEST POINT R.R. The stock of this company receives 6 per cent, per annum, payable January and July. The company has the option of redeeming the Debenture Cer- tificates at its will. A majority of the capital stock stands in the name of the Georgia R.R. Bank, the Georgia R.R. and Banking Co., and the Central Trust Co. of New York, Trustees. For several years large Amounts have been appropriated from surplus earnings for improvements. From the surplus of- 1 900-1, $56,088 was appropriated as a reserve for improvements. ATLANTA, KNOXVILLE & NORTHERN RY. Following are given the gross and net earnings for the period July 1, 1901,'to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $262,590 $205,075 Net, taxes deducted 103,982 66,551 In 1 90 1, all of the Income Bonds had been exchanged for 5 per cent, preferred stock. The official report for 1900-1 states that "outside of actual operating expenses," the payments made during the year ending June 30, 1901, for renewals and improvements amounted to $329,578. On June 30, 1901, the bills payable amounted to $279,000. On January 2, 1902, the certificates of indebtedness were paid off. A new issue of bonds has been made, dated March i, 1902, bearing 4 per cent, interest. Sufficient of these bonds will be reserved to retire the outstanding 5 per cent, bonds. The new issue will be at the rate of $10,000 per mile. ATLANTIC COAST LINE R.R. Following are given the gross and net earnings for the period July I, 1 90 1, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $3,124,828 $3,004,255 Net, taxes deducted 1,077,789 1,166,902 The preferred stock is entitled to non-cumvilative dividends of 5 per cent, per annum in priority to the common stock. In 1901, OF RAILROADS. 171 the preferred received 5 per cent., and the common 3^ per cent. The dividend paid on the common in December, 1901, was 2 per cent. The Atlantic Coast Line Co. (of Connecticut) owns a majority of the stock of this company. CENTRAL OF GEORGIA R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compari- son, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $3,306,008 $3,019,642 Net, taxes deducted 1,041,783 1,058,017 The Income Bonds are entitled to non-cumulative interest of 5 per cent, per annum, the first incomes in priority to the second incomes, and the second in priority to the third incomes. Five per cent, is now being paid in the first incomes. The capital stock of the Central of Georgia is held in the interest of the Southern. CHESAPEAKE & OHIO RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, igoi. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $7,226,428 $6,629,835 Net, taxes deducted 2,874,340 2,744,901 One per cent, was paid on this stock in October, 1899; i per cent, was paid in November, 1900, and i per cent, was paid in November, 1901. Froin the surplus of 1900-1, $1,304,172 was appropriated for new equipment and construction. Comparison of the capitalization, earnings, etc., of the Chesa- peake & Ohio and Norfolk & Western shows, among other things, 1. That the total capitalization of each road is about the same. 2. That the average mileage operated and the gross earnings of each were for 1900-1 about the same. 3. That the density of the Chesapeake & Ohio's freight and passenger business was considerably larger than in the case of the Norfolk & Western. This shows that (as the gross was the same) the average rates received by the Chesapeake & Ohio were lower. 4. That where Chesapeake & Ohio has bonds outstanding the. Norfolk & Western has preferred stock. (It required a smaller 172 THE EARNING POWER percentage of Norfolk & Western's gross income last year to pay- all "fixed charges" and 4 per cent, on the preferred stock than was required of Chesapeake & Ohio's gross income to pay its "fixed charges.") 5. The increase in the gross earnings of Chesapeake & Ohio for the year 1 900-1 was due largely to better rates. The same thing may be said of Norfolk & Western. GEORGIA SOUTHERN & FLORIDA RY. Following are given the gross and net- earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $523,274 $503,636 Net, taxes deducted 149,372 145,708 The preferred stock is entitled to non-cumulative dividends of 5 per cent, per annum, and is redeemable after June i, 1905. Divi- dends at the rate of 5 per cent, and 4 per cent, per annum are being paid on the preferred and common stocks respectively. Dividend periods, May and November. This road is affiliated with the Southern although operated separately. NORFOLK & WESTERN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given ; 1901-2 1900-1 Gross $7,311,463 $6,828,300 Net, taxes deducted 3,144,471 2,754,632 Surplus 2,183,904 1,816,607 The preferred stock is limited to non-cumulative dividends of 4 per cent, per annum. The common stock received its first dividend of i per cent, in June, 1901. Preferred dividends are paid semi-annually in February and August. From the surplus of 1 900-1, $1,500,000 was appropriated for a betterment fund. A like amount was so appropriated from the surplus of 1899-0. The Norfolk & Western Ry. Co. has, since the organization of the present company, in 1896, freely charged its operating expenses for maintenance. OF RAILROADS. 173 Since the close of the last fiscal year, the Norfolk & Western Ry. Co. has acquired possession of extensive coal fields in the territory tributary to its lines. For the purpose of financing these purchases, $20,000,000 4 per cent, bonds will be issued, bearing the guarantee of the railway company. It is expected that the royalties, on account of leases will meet the fixed charges on these bonds. RICHiyiOND, FREDERICKSBURG & POTOMAC R.R. Following are given the gross earnings for the period July 1, 1901, to October 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $778,206 $671,140 Dividends at the rate of 8 per cent, per annum are being paid on both the common stock and the Dividend Obligations. Divi- dends are paid semi-annually in January arid July. From the surplus of 1900-1, $60,000 was set aside to provide for contemplated improvements; $80,000 was so set aside from the surplus of 1899-0. Fixed charges for the year 1901-2 will be considerably less than for the year 1 900-1, owing to the recent payment and cancellation of a large portion of the company's bonds. In 1 90 1, the Richmond- Washington Co. was incorporated. This new company acquired all of the capital stock of the Wash- ington Southern Ry: Co., and a majority of the stock of the Rich- mond, Fredericksburg & Potomac R.R. "Co. The Washington Southern is 35 miles in length, and together these two roads extend from Washington, D. C, to Richmond, Va. The Wash- ington Southern and the Richmond, Fredericksburg & Potomac maintain their corporate entities. The capital stock of the Richmond- Washington Co. is equally owned by six railroads, viz. : the Pennsylvania, the Baltimore & Ohio, the Atlantic Coast Line, the Southern, the Seaboard Air Line and the Chesapeake & Ohio. SOUTHERN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $15,852,415 $14,995,405 Net, taxes deducted 5ii5o>207 4,906,707 174 THE EARNING POWER The preferred stock is limited to non-cumulative dividends of 5 per cent, per annum. Four per cent, was paid in 1901 on that stock. Dividends are paid semi-annually in April and October. The company has the right to retire the preferred stock at par. In January, 1900, the Virginia Legislature authorized the re- duction of the stock whenever, on majority vote, it was deemed advisable. The Alabama Great Southern, the Cincinnati, New Orleans & Texas Pacific, the Northern Alabama and the Georgia Southern & Florida are affiliated with the Southern, but operated' separately. The Southern controls the Mobile & Ohio (operated separately) through ownership of the stock of that company. See Mobile & Ohio, page 177. An interesting comparison can be made bearing upon the merits as investments of Southern preferred stock, Denver & Rio Grande preferred stock and Atchison, Topeka & Santa F6 preferred stock. WEST VIRGINIA CENTRAL & PITTSBURGH RY. Following are given the gross and net earnings for the period July I, 1901, to September 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross, railroad department ,. $309,588 $286,546 Net " " ,... 111,153 125. 119 The stock of this company is receiving 4 per cent, per annum in dividends. A semi-annual payment of 2 per cent, was made in September, 1901. In 1900, the West Virginia Central & Pittsburgh purchased and took over all the properties and business of the Davis Coal and Coke Co. The organization of the latter company is maintained. The railway company owns extensive coal, iron and timber lands. The profits of the coal department for 1900-1 exceeded $500,000. From the surplus earnings of 1900-1, $505,192 was appropriated for equipment, betterments and additions. In January, 1902, it was reported that a syndicate identified with the Wabash had acquired the property of the West Virginia Central & Pittsburgh. WRIGHTSVILLE & TENNILLE R.R. Following are given the gross earnings for the period July i, 1 90 1, to October 31, 1901. For the purpose of comparison, the earnings for the like period the previous year ai'e given: 1901-2 1900-1 Gross $45,905 $57,763 OF RAILROADS. I7S The preferred stock carries preference for non-cumulative divi- dends up to 6 per cent. Six and one-half per cent, was paid on both classes of stock in the year 1901. The Central Ry. of Georgia owns the entire issue of preferred stock and $104,300 of the common stock. ALABAMA GREAT SOUTHERN R.R. Following are given the gross and net earnings for the period July 1, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $1,040,048 $893,857 Net, taxes deducted 305,206 269,381 After payment of interest on bonds, net profits are to be applied as follows: (a) To 6 per cent, on preferred "A" shares; (6) to 4 per cent, on funded certificates; (c) to appropriation of a sufficient sum to retire funded certificates in ten years; (d) to dividend on "B " shares. In 1900 the preferred received 8 per cent, (of which 2 per cent, was on account of unfunded arrears) . A considerable saving in interest charges will result in the re- funding of high-rate interest bonds maturing in 1906 and 1908. The Alabama Great Southern is controlled by the Southern, but operated independently. CINCINNATI, NEW ORLEANS & TEXAS PACIFIC RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,327,668 $2,055,183 Net, taxes deducted 614,495 554,266 A controlling interest in the stock of this road is held in the interest of the Southern and the Cincinnati, Hamilton & Dayton. It is clear that for several years operating expenses have been heavily charged for improvement work. At the regular election on November 5, 1901, the voters of the city of Cincinnati approved contracts for the extension of the lease of the Cincinnati Southern to the Cincinnati, New Orleans & Texas Pacific, these contracts providing: 1. For the renewal of the lease for a period of sixty years from the termination of the existing lease, October 12, 1906. 2. For the issuance of city bonds to the extent of $2,500,000, the proceeds to be used for terminals and improvements; the railway company to pay, as additional rental, interest on these 176 THE EARNING POWER bonds, and in addition i per cent, per annum to be used as a sink- ing fund. Under the terms of the contract for the renewal of the lease the rental after the expiration of the present lease is to be: $1,050,000 per annum for twenty years, i, 100, 000 " " " 1,200,000 " " " The contract for renewal also requires that the company shall increase its capitaL stock from $3,000,000 to $5,000,000, and that the proceeds of this additional $2,000,000 of capital stock shall be invested in property to be used in the operation of the road, and to be pledged under the mortgage to secure the rental. Other provisions are made, the result of which will be that after October 12 ,1902, the railway company will be required to pay for twenty years from that date altogether about $1,090,000 per annum as rental, aside from any interest it will have to pay on account of the issue of bonds as above. LOUISVILLE & NASHVILLE R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross, excluding company's freight, .. . $12,676,359 $11,431,793 Net, " '' "... 3,968,028 4,225,352 Dividends at the rate of 5 per cent, per annum are being paid semi-annually in February and August. The statement of gross earnings given on page 115 includes for each year "freight on company's property." In the annual report for 1900-1, there was given, for the first time, the statement of gross earnings with "freight on company's property" eliminated. These gross earnings in 1900-1 amounted to $28,022,207. For the sake of comparison, in the statement above mentioned, the gross earnings for 1900-1 include freight on company's property. The Construction Account was closed in July, 1894, since which time expenditures theretofore charged to that account have been charged to operating expenses. Thus, charges to "Improvement Account" have been made annually as follows: In the year 1894-5 $279,583 55 1895-6 617,34195 1896-7 546,570 87 1897-8 659.950 13 1898-9 517,784 59 1899-0 1,021,843 06 1900-1 1,474,502 72 Total $5,117,576 87 OP RAILROADS, 177 LOUISVILLE, HENDERSON & ST, LOUIS RY. • Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of compar- ison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross 1.. $296,576 $280,613 Net 82,851 93.349 The preferred stock is entitled to non-cumulative dividends of 5 per cent, per annum. From the surplus of 1900-1, $42,766 was appropriated for im- provements. MOBILE & OHIO R.R. Following are given the gross earnings for the period July 1, 1901, to December 31, 1901. For the pturpose of comparison, the earnings for the like period the previous year are given: igoi-2 1900-1 Gross $3,122,800 $3,126,676 In March, 1901, the Southern Ry. Co. purchased a large ma- jority of the General Mortgage 4 per cent. Bonds and of the capital stock of the Mobile & Ohio R.R. Co., -paying therefor, respectively, its Mobile & Ohio collateral 4 per cent. Fifty- Year Gold Bonds, and its Mobile & Ohio Stock Trust Certificates, upon which divi- dends will be paid as follows: Two per cent, for the first year, 3 per cent, for the second year, and 4 per cent, thereafter, s»ch divi- dends being payable October ist and April ist in each year. From the surplus earnings of the years 1896-7, 1897-8, 1898-9, i8gg-o and 1900-1, appropriations of an extraordinary nature were made as follows: Year 1896-7 $204,450 " 1897-8 180,697 " 1898-9 271,748 " 1899-0 314,970 " 1 900-1 -389,416 NASHVILLE, CHATTANOOGA & ST. LOUIS RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $3,290,640 $3,217,781 Net 1,047,306 1,123,279 Surplus 284,757 318,573 178 THE EARNING POWER Na dividends are being paid on the stock of this company. The Louisville & Nashville R.R. Co, owns more than one-half the capital stock of the Nashville, Chattanooga & St. Louis Ry. Co. Expenditures aggregating $229,214, made during the year 1900-1 for equipment, improvements and additions, were charged to operating expenses. WESTERN RY. OF ALABAMA. The stock of this company received in 190 1 4 per cent. Prom the surplus of 1900-1, $134,713 was appropriated for betterments. This appropriation followed similar appropria- tions in previous years. The Georgia R.R. and the Central Ry. of Georgia each own one- half the capital stock of the Western Ry, of Alabama, ATCHISON, TOPEKA & SANTA FE RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $25,547,304 $22,189,987 Net 11,161,247 8,930,367 The preferred stock is entitled to and is limited to non-cumula- tive dividends at the rate of 5 per cent, per annum. This stock is receiving semi-annual dividends of 2J per cent, each in February and August. The common stock is receiving dividends at the rate of 4 per cent, per annum payable semi-annually in June and December. A statement follows showing the capital expenditures of the Atchison, and the sources from which the same have been pro- vided from January i, 1896, to September 30, 1901: Total cash capital expenditures : I. For the construction or acquisition of additional railways $15,984,115 i. For equipment purchased in addition to that pur- chased in renewal of other equipment 3,789,422 3. For additional terminal properties 2,406,930 4. For improvements and betterments, including grade reduction, new bridges, etc 14,564,482 $36-744.949 of RAILROAOS. 1^9 These capital expenditures have been provided for: 1. By the sale of general mortgage bonds $18,618,579 2. By the proceeds of securities and property previ- ously embraced in the company's capital account. 513,163 3. By working capital and income and betternlent fund created out of income 17,613,207 $36,744,949 Atchison's maintenance expenses were liberally charged in 1900-1, as they have been since the organization of the present company. Of the surplus for igoo-i, $1,000,000 was credited to a "Special Betterment Fimd." In January, 1902, 30,000,000 serial debentures were issued and sold, the proceeds to be used for the purchase of new equip- ment, for extentions and improvements and for the payment of stocks and bonds acquired of other railroads. The debentures bear interest from February i, 1902, at the rate of 4 per cent, per annum, and are redeemable and payable at the rate of 12,500,000 a year, beginning February, 1903, COLORADO & SOUTHERN RY. Following are given the gross and net earnings for the period July 1, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,377,987 $2,078,416 Net 653,392 ,550,529 The first preferred and second preferred are each entitled to non-cumulative dividends of 4 per cent, per annum in order of priority as mentioned. . In 1900 2 per cent, was paid on the first preferred stock. In February, 1900, 2 per cent, was paid, and in October, 1901, li per cent. The Colorado & Southern owns a large majority of the. common stock of the Fort Worth & Denver City, 454 miles. In 1901 the Colorado Midland, 336 miles, was acquired in the joint interest of the Colorado & Southern, and the Rio Grande Western. DENVER & RIO GRANDE R.R. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- l8o THE B ARMING POWM parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $5,345,068 $5,147,760 Net 2,117,797 ii92i,733 Surplus 1,125,877 925,936 The preferred stock is limited to non-cumulative dividends of 5 per cent, per annum. The full dividend is being paid on the preferred. The payments are made semi-annually in January and July. It is believed that it is safe to say that by the acquisition of the Rio Grande Western the Denver & Rio Grande will net consid- erable profit. The true earning power of the Rio Grande Western is more than ample to provide for dividends on the Denver & Rio Grande preferred stock issued for the purpose of acquiring the Rio Grande Western capital stock. There was appropriated from the surplus for 1900-1, $140,000 for Renewal Fund. The majority of the capital stock of the Rio Grande Southern is owned by the Denver & Rio Grande. The Denver & Rio Grande is controlled by the Missouri Pacific through the ownership of stock purchased in 1901. It is interesting to compare Denver & Rio Grande preferred stock with Southern preferred and Atchison, Topeka & Santa F4 preferred, all of which stocks are entitled to non-cumulative divi- dends at the rate of 5 per cent, per annum. Dividends on these stocks are limited to 5 per cent. FORT WORTH & DENVER CITY RY. Following are given the gross and net earnings for the period January i, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901 1900 Gross $1,956,006 $1,624,956 Net 523,878 347.3315 Through its ownership of a large majority of the common stock, the Colorado & Southern controls the operation of this road. In the readjustment in 1896 of the finances of this road, the holders of the First Mortgage 6 per cent. Bonds agreed to reduce the interest on their bonds to 4 per cent, until December, 1900, and to take $312 of stock for five overdue coupons, and the 2 per cent, deferred interest. The coupon due June i, 1901, was paid, this coupon calling for full interest at the rate of 6 per cent, per annum. In 1900 interest was charged against net earnings at the rate of 4 per cent, for eleven months and at the rate of 6 per cent, for one month (December), OF RAILROADS. l8l KANSAS CITY SOUTHERN RY. Following are given the gross and net earnings for the period July X, 1901, to November 30, igoi. For the purpose of com- parison, the earnings for the like period the previous year are given: igoi-2 1900-1 Gross $2,151,735 $1,847,016 Net, taxes deducted 638,207 385,840 The preferred stock is entitled to and is hmited to non-cumu- lative dividends of 4 per cent, per annum. From April i, igoo, to June 30, 1901, $2,245,610 was expended for various improvements, equipment and construction. The reorganization plan provided cash to pay car trusts, $i,goo,- 000, and for working capital and expenses of reorganization, $2,150,000. MISSOURI, KANSAS & TEXAS RY. Following are given the gross and net earnings for the period July I, igoi, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given; • 1901-2 1900-1 Gross $7,566,987 $6,626,793 Net, taxes deducted 2,511,390 2,396,837 Surplus 1,010,736 949,882 No dividends are being paid. The preferred stock is limited to non-cumulative dividends of 4 per cent, per annum. Operating expenses were charged liberally in 1 900-1 for main- tenance. The average amount expended in igoo-i for main- tenance of way and incorporated in operating expenses was over $1,200 per mile, against an average expenditure for the five pre- ceding years of but $660 per mile per annum. While the surplus for 1 900-1 amounted to about 6 per cent, on the preferred stock, the "margin of safety" for dividends was by no means large. MISSOURI PACIFIC SYSTEM. Following are given the gross earnings for the period January i- 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: igoi 1900 Gross $35,256,958 $30,835,196 iSa THE EARNING POWER In December, 1901, a semi-annual dividend of 2^ per cent, was declared payable in January, 1902. The annual charges to operating expenses for maintenance have been by no means liberal on this system. From the surplus of 1900 about $550,000 was deducted on account of "discount" on bonds sold. The Missouri Pacific holds, through its affiliated road, the St. Louis, Iron Mountain & Southern, practically all of the Texas & Pacific Ry. Co.'s Second Mortgage 5 per cent. Income Bonds, these bonds having been acquired in exchange for St. Louis, Iron Mountain & Southern Unifying and Refunding 4 per cent. Bonds. In 1 90 1 4 per cent, was paid by the Texas & Pacific on its In- come Bonds. In 1900 i^ per cent. , was paid on these Income Bonds, and the proportion of this payment received by the St. Lotus, Iron Mountain & Southern is included in "Miscellaneous Receipts," page 126. Of its capital stock issued in 1901, $14,422,522 was issued to provide for the payment for shares of stock of the Denver & Rio Grande R.R. Co. Of this, $14,422,522 of stock $9,922,522 was subscribed for by stockholders at par. The Missouri Pacific Ry. Co. holds in its treasury $14,800,000 common stock, and $7,300,- 000 preferred stock of the Denver & Rio Grande R,R. Co. RIO GRANDE SOUTHERN R.R. Following are given the gross earnings for the period July i, 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $301,079 $292,668 The majority of the stock of this road is owned by the Denver & Rio Grande, which guarantees $2,277,000 (more than half) of the Rio Grande Southern 4 per cent, bonds. RIO GRANDE WESTERN RY. Following are given the gross earnings for the period July i, 1 90 1, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,768,847 $2,542,100 The preferred stock is entitled to non-cumulative dividends of 5 per cent, per annum, after the payment of which the common stock is entitled to 5 per cent. After both classes have received 5 per cent., they share alike in any further distribution of profits. OF RAILROADS. 183 The preferred stock is receiving 5 per cent, per annum, payable quarterly, beginning February. In igoi the Denver & Rio Grande R.R. Co. issued $20,750,000 of its preferred stock, of which $8,250,000 was set aside to be exchanged for the preferred stock of the Rio Grande Western in the ratio of eleven shares of Denver & Rio Grande preferred for ten shares of Rio Grande Western preferred; the balance, $12,500,- 000, was sold to Denver & Rio Grande stockholders at $90 per share, and the proceeds used to acquire practically all of the Rio Grande Western common stock. Practically all of the Rio Grande Western preferred stock has been exchanged. In 1899-0 and 1 900-1 the operating expenses of the Rio Grande Western were heavily charged for improvements. The Rio Grande Western and the Colorado & Southern own jointly the Colorado Midland, purchased in 1900. St. JOSEPH & GRAND ISLAND RY. Following are given the gross and net earnings for the period July I, 1 90 1, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous years are given: igoi-2 1900-1 Gross $642,582 $584,038 Net, taxes deducted 227,573 219,806 Surplus ■ 183,823 176,056 In 1 90 1 5 per cent, was paid on the first preferred stock. The first preferred is entitled to non-cumulative dividends of 5 per cent, per annum. The second preferred is entitled to non- cumulative dividends of 4 per cent, per annum. The Voting Trust under which the first preferred stock was held terminated January 1, 1902. St. LOUIS & SAN FRANCISCO R.R. Following are given the gross and net earnings for the period July I, 1901, to October 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given. The figures include in both years results on Kansas City, Fort Scott & Memphis and Fort Worth & Rio Grande: 1901-2 1900-1 Gross $7,435,404 $6,203,832 Net. 3.338,408 2,713,639 surplus 1,700,372 1,225,147 Quarterly dividends at the rate of 4 per cent, per annum are being paid on the first and second preferred stocks. The company 184 THE EARNING POWER reserves the right to redeem either or both issues of its preferred stock at par in cash. From the surplus of 1900-1, $180,557 was deducted for improve- ments, construction and additional equipment. In 1900-1, the principal lines of the Kansas City, Fort Scott & Memphis R.R. Co. were conveyed to the Kansas City, Fort Scott & Memphis Ry. Co. The purchasing company issued $13,510,000 non-cumula,tive preferred stock and $11,650,000 4 per cent, re- funding bonds. The system so acquired has been leased to the St. Louis & San Francisco R.R. Co. at an annual rental of an amount equal to the fixed charges of the lesser company, and a dividend of 4 per cent, on the preferred stock issue of the lessor. The preferred stock of the lessor has been deposited with a trust company against proper trust certificates, entitling the holder to the payment by the St. Louis and San Francisco R.R. Co. of divi- dends at the rate of 4 per cent, per annum from and after October I, 1901, and redeemable and payable by that company, at par within twenty years. The St. Louis & San Francisco R.R. Co. also guaranteed by indorsement the principal and interest of the new refunding bonds. These leased lines are now operated as part of the ' ' Frisco ' ' system. Following is given an estimated statement of the Income Account of all the lines comprising the St. Louis & San Francisco R.R. System for the year 1 900-1. This statement includes the St. Louis & San Francisco R.R. Co. proper and the lines of the Kansas City, Fort Scott & Memphis. The interest and dividends guaranteed as above are charged against the net earnings: 1900— I. Average miles operated, about 2,805. TOTAL PER MILE Gross earnings $19,014,554 $6,778 Operating expenses 11,257,951 4,013 -Net earnings 7.756,603 2,765 Other income 188,258 67 Total net income 7,944,861 2,832 Fixed charges* 6,008,250 2,142 Surplus 1,936,611 690 A large majority of the old bonds of the St. Louis & San Fran- cisco R.R. Co. were in 1901 exchanged for new fifty-year refunding 4 per cent, bonds. The amounts which the St. Louis & San Francisco R.R. Co. has charged to operating expenses for maintenance have been for years below average requirements. *Fixed Charges include interest at 4 per cent, on the $11,650,000 refunding bonds, and dividends at 4 per cent, on the $13,510,000 OF RAILROADS. 185 preferred stock mentioned above. The Fixed Charges- as given above required 31 per cent, of the Gross Income for 1900-1. It must be noted that no interest on dividends on these guaranteed securities were paid in igoo-i, the seciu-ities not having been issued until after the close of the fiscal year. ST. LOUIS SOUTHWESTERN RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $3,190,823 $3,073,286 Net, after deducting "betterments" 930,492 1,307,483 The Income Bonds are limited to non-cumulative interest of 4 per cent, per annum. The last semi-annual interest payment of 2 per cent, was made January i, 1902. From the surplus of 1900-1, $1,490,000 was appropriated for general improvement work. From the earnings for the year 1900-1, $258,825 was deducted representing the amounts paid for equipment trust obligations. The " Fixed Charges" on page 1 3 1 do not include this charge against income. TEXAS & PACIFIC RY. Following are given the gross earnings for the period January i , 1 90 1, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: 1901 1900 Gross $11,713,550 $9,751,121 Interest of 4 per cent, was paid in March, 1901, on the 5 per cent. Income IBonds, a Vast majority of which are owned by the St. Louis & Iron Mountain (Missouri Pacific). The Missouri Pacific owned, on December 31, 1900, $6,525,000 of the Texas & Pacific stock. From the surplus of 1900, $655,307 was appropriated for new equipment, new buildings, etc. GREAT NORTHERN RY. Following are given the gross earnings for the period July i, 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given : 1901-2 1900-1 Gross $20,559,915 $15,760,269 l86 THE EARNING POWER Dividends are being paid at the rate of 7 per cent, per annum. Dividends are paid quarterly, beginning February. The majority of the capital stock of the Great Northern Ry. Co. is owned by the Northern Securities Co. The"Bonds Outstanding" on page 133 do' not include the "Joint 4s" issued by the Great Northern and the Northern Pacific for the purchase of the Chicago, Burlington & Quincy stock. The "Bur- lington " will no doubt be able of itself to provide for the interest on those. bonds. 1 he Great Northern is possessed of valuable lands acquired under land grants. From the surplus earnings of 1899-0, $1,800,000 was appropriated for improvements. From the surplus of 1898-9 and 1897-8, $1,800,000 and $2,250,000, respectively, were so appropriated. IOWA CENTRAL RY. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross / $1,063,015 $956,797 Net 188,070 102,792 After 5 per cent, has been paid on the preferred, and 5 per cent, on the common, both classes of stock share alike. No dividends are being paid at present. A comprehensive plan has been adopted by the present manage- ment looking toward the rehabilitation of the property. Large sums of money have been expended, and more will be ex- pended to put the road in good physical condition, and to bring the equipment up to the requirements of the company's traffic. Operating expenses are bearing a. considerable portion of this expense. See Minneapolis & St. Louis R.R. MINNEAPOLIS & ST. LOUIS R.R. Following are given the gross and net earnings for the period July I, iQoi, to November 30, 1901. Forthe purpose of comparison the earnmgs for the like period the previous year are given : 1901-2 1900-1 Gross .'...- $1,567,456 $1,381,805 Net, taxes deducted 681,773 610,066 Both the preferred and common are now receiving 5 per cent, per annum. The preferred has a prior right to non-cumulative OF RAILROADS. 187 dividends of 5 per cent, per annum. After 5 per cent, has been paid on each issue, both stocks share alike. Dividends are paid semi-annually, in January and July. Prior to January i, 191 1, $2,386,000 7 per cent, bonds will mature. The Minneapolis & St. Louis and the Iowa Central are controlled by the same interests. MINNEAPOLIS, ST. PAUL & SAULT STE. MARIE RY. Following are given the gross and net earnings for the period July i, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period the previous year are given: 1901-2 1900-1 Gross $2,882,172 $1,923,391 Net 1,651,191 803,441 The preferred stock has priority over common stock for non- cumulative dividends at the rate of 7 per cent, per annum, and is entitled to share pro rata with the common in any dividend in excess of 7 per cent, in the entire capital stock. On Jime 30, 1901, the Canadian Pacific owned $7,066,600 common and $3,533,400 preferred stock. The Canadian Pacific guarantees the interest on a large majority of this company's bonds. The charges to operating expenses have been for years much below those amounts which are commonly accepted as necessary for average maintenance requirements. NORTHERN PACIFIC RY. Following are given the gross earnings for the period July i, 1901, to December 31, 1901. For the purpose of comparison, the earnings for the like period the previous year are given: igoi-2 1900-1 Gross $22,823,604 $18,112,767 Dividends at the rate of 4 per cent, per annum are being paid on the common stock. From the surplus earnings there was appropriated for additions " and betterments, $811,709 in 1897-8, $2,176,619 in 1898-9, $3,000,- 000 in 1899-0, and $2,011,285 in 1900-1. Control of the Northern Pacific is now held by the Northern Securities Company. Practically all of the Northern Pacific common stock has been exchanged for stock of the Northern Securities Co., on the basis of $115 in the latter stock for every $100 in Northern Pacific common stock. On January i, 1902, all of the preferred stock was retired, and the majority of that stock paid for and canceled on that day. The lS5 THE EARNING POWER money used for the retirement of the preferred stock was raised through the issue to holders of the common stock at par of $75,000,000 4 per cent. Convertible Bond Certificates. Exercising its option, the Northern Pacific Ry. Co. issued notices in January, 1902, requiring the holders, of the Convertible Bond Certificates to convert their certificates into common stock. UNION PACIFIC R.R. Following are given the gross and net earnings for'the period July I, 1901, to November 30, igoi. For the purpose of com- parison, the earnings for the like period the previous year are given ; 1901-2 igoo-i Gross $21,548,859 $19,910,992 Net, taxes deducted 10,658,740 9,063,614 The preferred stock is limited to non-cumulative dividends of 4 per cent, per annum. Semi-annual dividends at the rate of 4 per cent, per annum are now being paid in April and October of each year on both the preferred and common stocks. Of the surplus of 1900-1, $1,500,000 was applied to betterments, additions and equipment. The Union Pacific R.R. Co. and the Union Pacific Land Co. owned, on June 30, 1901, over 6,000,000 acres of land. On June 30, 1901, the Union Pacific R.R. Co., through its auxiliary com- pany, the Oregon Short Line R.R. Co., owned $41,085,000 pre- ferred stock and $37,023,000 common stock of the Northern Pacific Ry. Co. On January i, 1902, this preferred stock was redeemed at par and canceled. The common stock has been exchanged for the stock of the Northern Securities Company, on the basis of Sioo in Northern Pacific common for $115 in Northern Securities stock. The dividends which will be received by the Union Pacific on its holdings of Northern Securities Co.'s stock will go far to offset the total interest charges on the Convertible 4-per-cent. Bonds, the greater part of which bonds were issued for the purpose of pro- viding funds for the purchase of Northern Pacific stocks. Should 5 per cent, per annum be paid on the stock of the Northern Secu- rities Co., the income received by Union Pacific on its holdings of that stock would more than offset the interest charges on the Convertible Bonds. The Union Pacific R.R. Co. owned, on June 30, igoi, $75,000,000 par value of Southern Pacific Co. stock. A large profit will ulti- mately accrue to the Union Pacific R.R. Co., through its invest- ment in this stock. 09 RAILROAD^. 1SI9 SANTA PE, PRESCOTT & PHCENIX RY. Following are given the gross earnings for the period July 1, 1901, to December 14, 1901. For the piirpose of comparison, the earnings for the like period the previous year are given: 1901-2 igoo-i Gross $448,936 $419,379 By a contract, under which the holders of the five-per-cent. Second Mortgage Bonds deposited their bonds with the Central Trust Co. against its certificates of beneficial interest, it is provided that if required all surplus earnings remaining after payment of operating expenses and interest on the First Mortgage Bonds may be used until 1910 for permanent improvements, or for additional equipment, or for repairs or renewals made necessary by extraordinary and unusual casualties. For several years the Santa Fe, Prescott & Phoenix has paid 5 per cent, per annum on the Second Mortgage Bonds. In 1901 the Atchison, Topeka & Santa Fe acquired, by the ptxrchase of the capital stock and Second Mortgage Bonds, com- plete control of the Santa Fe, Prescott & Phoenix. By legislative enactment this company is exempt from taxa- tion for twenty years from 1891. SOUTHERN PACIFIC CO. Following are given the gross and net earnings for the period July I, 1901, to November 30, 1901. For the purpose of com- parison, the earnings for the like period of the previous year are given: 1901-2 1900-1 Gross -. $36,322,496 $31,130,794 Net, taxes deducted 13.759.391 11.798.397 Dividends have never been paid on the stock of this company. • From the surplus of 1900-1, $6,870,550 was appropriated for new equipment, betterments and additions. This appropriation followed large appropriations of a similar nature in previous years. There is no doubt that operating expenses are charged for main- tenance in excess of average normal requirements. A large saving in interest charges will be made in the next few years through the refunding of high-rate interest bonds. On June 30, 1901, the Union Pacific Co. owned $75 000,000 Southern Pacific stock. 100 tHE fiARNI>JG POWER Op RAILROADS. CANADIAN PACIFIC RY. Following are given the gross and net earnings for the period July 1, 1 90 1, to November 30, 1901. For the purpose of com- parison, the earnings for the like period of the previous year are given: 1901-2 1900-1 Gross '. $16,399,817 $13,296,131 Net, taxes deducted 6,662,148 5,141,272 The preferred stock is limited to non-cumulative dividends of 4 per cent, per annum. Dividends at the rate of 5 per cent, are being paid on the common stock. Common dividends are paid in April and October. Comparison (so far as it can be made with the meager informa- tion at hand) of the maintenance expenses of the Canadian Pacific, and of other transcontinental roads, tends to show that the policy of this road has been by no means so liberal as that of the Northern Pacific, Great Northern, Union Pacific or Atchison, Topeka & Santa Fe. The Canadian Pacific owns a majority of the stock of the Minne' apolis, St. Paul & Sault Ste. Marie. The Canadian Pacific owned, as of June 30, 1901, 16,104,403 acres of land. Under leases of other roads the company will re- ceive about 6,170,000 additional acres of land. From the surplus of 1900-1, $150,000 was deducted, having been applied against the cost of steamships.