October 1904, Vol. 38, No. 18 Railway Age (New York) Page 612, col. 2

Annual reports of railways

Grand Trunk.

The Grand Trunk's financial statements continue to be made up for half-yearly periods. The following summary compares the income account of the six months that ended on June 30, 1904, with the corresponding half calendar year 1903:

1904. 1903. Decrease.
Gross earnings. £2,559,316 £2,778,080 £218,764
Operating expenses. 1,895,569 1,995,031 99,462
Net earnings. £663,747 £783,049 £119,302
Other income. 92,032 94,866 2,834
Total net income. £755,779 £877,915 £122,136
Fixed charges. 631,169 623,387 * 7,782
Surplus. £124,610 £254,528 £129,918

Adding to the surplus of six months a balance of £2,699 brought over from the previous half year, the company had on June 30 available for dividends the sum of £127,309. Of this divisible income 4 per cent paid on the guaranteed stock absorbed £122,946.

Comparing the two half years, passenger department earnings increased about £20,000, while freight earnings fell off £240,000. Operating expenses increased £41,000 in the transportation department, but £141,000 was saved in maintenance. The report attributes the falling off in revenue and the increase in operating expenses in the main to the unprecedented severity of the winter during the first three months of the half year.

The completion of the second main track between Whitby and Port Hope gives the company a continuous double line from Saint Johns to Niagara Falls via Montréal and Hamilton, a distance of 442 miles. The southern division is now to be double track between Hamilton and Lynden, 14 miles, Brantford and Paris, 8 miles, and Paris and London, 47 miles.

The total charges to capital account during the six months amount to £124,000. The expenditures included £32,000 for real estate and £52,000 for second track.

Certain traffic statistics for the June half years in 1904 and 1903 are compared hereunder:

1904. 1903. Decrease.
Tons carried. 5,927,994 6,745,354 817,360
Ton miles. 1,129,081,776 1,426,228,689 297,146,913
Passengers carried. 3,957,814 3,960,494 2,680
Freight train miles. 4,733,697 5,678,746 945,049
Passenger train miles. 3,774,258 3,570,809 *203,449

The accounts of the Grand Trunk Western and the Detroit Grand Haven & Milwaukee are kept separately. On the Grand Trunk Western in the half year gross earnings fell off £48,000 and operating expenses were reduced £43,000, making the decrease in net earnings of £5,000. Both the freight traffic and the passenger traffic show small losses. On the Detroit Grand Haven & Milwaukee gross earnings increased slightly, but operating expenses advanced more, the net result being a loss of £5,000. Freight receipts increased somewhat, while passenger receipts diminished.

The report states that considerable progress has been made with the surveys of the proposed Grand Trunk Pacific Railway and construction will begin next spring. The trade by which the Grand Trunk acquires the Canada Atlantic is described at some length. This purchase will tend to strengthen and consolidate the Grand Trunk system.

Railways: C.A.Ry., G.T.Ry.