1907 - Annual Report of Norfolk and Western

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Thu Sep 13 23:06:52 EDT 2007

Roanoke Times - September 14, 1907


The annual report of the Norfolk and Western railway, covering the
fiscal year ended June 30 last, shows gross earnings of $31,164,381,
an increase of $2,678,615 operating expenses, $19,514,535, and an
increase of $2,449,911; net earnings, $11,649,845, an increase of
$226,703. The operating expenses were 62.6 per cent of gross
earnings, as compared with 59.9 per cent last year. The earnings from
passengers amounted to over $4,000,000, and the earnings from freight
to over $26,000,000. President L. E. Johnson is also reported as saying:
"Among the industries established on our lines during the year are
the following: Twenty-one manufactories of mineral and metal
products, 66 manufactories of lumber products, 27 manufactories of
farm implements and farm products, 7 coal mines. At the close of the
year 165 coal and coke companies were in operation; 13,673 coke ovens
were completed, including 2,151 coke ovens of the United States Cola
& Coke Co., and 64 coke ovens were under construction. There were
also in operation 17 iron furnaces, with an estimated aggregate
capacity of 2,505 tons of pig-iron per day; four furnaces, with an
aggregate capacity of 510 tons of pig-iron per day, were out of
blast. Considerable double-tracking and tunnel work has been
authorized and is under construction. * *
"The policy of our management has been to supply adequate
facilities and sufficient equipment to move the business offered to
your lines, and rapidly as the necessary funds could be secured from
surplus income or through the sale of the company's securities.
Notwithstanding its persistent efforts to that end, the expansion of
industrial requirements has been so great as to prevent their
complete realization. The results obtained in the company's
operations amply demonstrate the importance and value of the work
already completed, and the further construction, equipment and
betterment work heretofore authorized and in progress is urgently
needed to conduct economically the business offered to the company
which could fully employ all such facilities were the same now
completed and in use.
"The rapidly-progressing development of the coal areas tributary
to the company's lines makes it increasingly evident that the demands
upon the management for transportation cannot be properly met without
the complete double-tracking of the line from Concord to Columbus,
which will involve the construction of 150.18 miles of second track,
in addition to the already authorized, together with additional
passing sidings.
"This work, while important to the interests of the stockholders,
is equally important to the welfare of the Commonwealths traversed by
your lines. It therefore goes without saying that any policy which
hampers the development of railroads, or by depleting their revenues
lowers the credit and thus repels investors, cannot but be fraught
with disaster both to the state and to the railways."


- Ron Davis, Roger Link

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