V.-Operated under lease for account of the various companies. Southern division, Cumberland & Ohio Railroad-Cumberland & Ohio Junction to Greensburg. Northern division, Cumberland & Ohio Railroad-Shel- Glasgow Railroad-Glasgow Junction to Glasgow. VI.-Lines in which this company in interested as owner Nashville, Chattanooga & St. Louis Railway . West Point branch-Iron City to Pinkney Length in Miles. 30.90 26.72 10.50 10.92 8 38 87.42 810.00 82.13 11.78 10.92 104.83 10.06 924.89 721.00 Henderson Bridge and connecting track. VII.-Lines in which this company is interested as joint Georgia Railroad and dependences. Total mileage. 46.00 20.70 66.70 4,731 58 (All subjoined statements for 1891-92 relate to the L. & N. system proper, embracing 2,857-91 miles of road.) This complex system, the geographical situation of which will be elucidated by a reference to Map 5, centres in Nashville and the mining districts of Kentucky and Tennessee, whence lines reach out to St. Louis, Memphis, New Orleans, Pensacola, River Junction, Atlanta, Norton, Cincinnati, Louisville, etc. The system therefore taps the mineral districts of Kentucky and Tennessee and the coal and iron region around Birmingham, and traverses the cotton belt, forming direct and short communication over its own lines from Cincinnati, Louisville, Nashville and Birmingham to New Orleans, from St. Louis to Louisville, Cincinnati, Nashville and Atlanta, and from Memphis to Louisville and Cincinnati. Since June, 1891, the road connects at Norton with the Norfolk and Western, in conjunction with which it forms a through "line" between St. Louis and Memphis on the one hand and the seaboard on the other, and as a result of this new connection its shipments of cereals and cotton have considerably increased. Needless to say the company's welfare is closely interwoven with the prosperity of the cotton planters and with the state of the Southern coal and iron trades, which of late have not been in a satisfactory condition. As a result of the uninterrupted growth of the system its capital has constantly increased. In 1877, with 650 miles of road owned, it consisted of $9,000,000 shares and $16,484,000 bonds; in 1892, with 2,578 miles owned, there are $52,800,000 stock and $75,397,000 bonds outstanding; the company holds, however, some $21,000,000 in shares and bonds, mostly deposited in trust to secure its own issues, and this sum must be deducted in order to find its net capitalisation, which amounts to about $55,400,000 bonds and $51,500,000 shares, a moderate figure not much in excess of $20,000 of each per mile. Subjoined is a statement of the company's share capital, of the dividends paid thereon since its foundation, and of its funded debt and the interest it requires. Share Capital : Common Stock, (par $100) $22,800,000 Dividends paid by the L. and N. RR. since its City of Louisv. Acc. Leb. br.ext. *Ten-forty Adjustm................. Louisv. Cinc. & Lex. Ry. mort. Consol. mort. Muinstem and br. *Memph. & Ohio RR. sterl. mort. *Memph., Clarksv. & Louisv. RR. sterl. mort... aCecelia branch mort.. Louisv. Cinc. & Lex. Ry.2nd mt. bEvansv., Henderson & Nashv. div. 1st mort.... Pensacola div. 1st mort.. Southeast & St. L. div. 1st mt.. Persac. & Atl. RR. 1st mort.. *New Orl & Mobile div. 1st mt. New Orl. & Mobile div. 2nd mt. *cGeneral mortgage bonds.. Louisv. Cinc. & Lex. Ry. gen.mt. First mort. 5 p.c. trust.... *First mort. 5p.c. 56 yr. gold.. Southeast. & St. L. div. 2nd mt. *Unified 56 yr. 4 p.c. gold mort... Ky. Cen. Ry. 1st mort.. Maysv. & Lex. RR. North. div. 7 p.c Apr., Oct. 19,980 4,531,000 1894 6 May, Nov. 271,860 1924 2,850,000 1897 7,070,000 1898 2,015,660 1902 801,000 1907 892,000 1907 627 งงง 7 a $1,000 of these bonds drawn for sinking fund due March 1, 1891, but no presented for redemption. Interest ceased on September 1, 1891. Also $40,000 of these bonds drawn for sinking fund due March 1, 1892. Interest ceased September 1, 1892. b $1,000 of these bonds drawn for sinking fund due Dec. 1, 1891, but not presented for redemption. Interest ceased on Dec. 1, 1891. c $77,000 of these bonds drawn for sinking fund due June 1, 1892, but not presented for redemption. Interest ceased on June 1, 1892. NOTE. The report for 1891-92 estimates the interest charges for 1892-93 at $4,836,438, this sum including guarantees of other bonds and deductions made for bonds in trust and sink-funds. The company guarantees bonds of other companies ts the amount of $15,715,932 (interest $951,104). Speaking broadly, the earning capacity of the Louisville and Nashville has kept pace with the growth of its mileage and capital; the only serious decline that has to be recorded occurred during the year just closed. In 1891-92 there was a decrease in gross earnings per mile of $911, while net revenue per mile of road fell $578, and thus the addition of 607 miles effected during the last fiscal year has materially reduced the pro rata earning power of the property. The fact should not be lost sight of that part of this decline in earnings per mile is due to the bad condition of business in the South, while net earnings were reduced by a rise in working expenditure caused by floods, etc.; but these adverse circumstances do not account for a falling off for the year equal to nearly 20 p.c. in net earnings per mile. Apparently the directors are aware of this fact, and give a curious explanation. They quote figures to prove that the system as it existed on June 30th earned almost as much in 1891-92 as in the preceding year, and in this they see ground for satisfaction-with what reason it is impossible to discover. It is just this calculation which shows of how little use the new mileage is. There cannot be much doubt that for the third time in its history the L. & N. has indulged in extension with more energy than judgment, although the position of the company, as is shown by subsequent tables, is so strong that this mistake will have no very injurious affects. In 1891-92 the company earned a fair dividend in spite of the bad state of trade and the great proportion of unremunerative mileage; it is easy to infer what the property will be capable of in good times and with a better traffic on its new roads. |