New-York tribune., 1873-04-17

count. IL will not appear that the IounsyNhnh h'"o'"
pays out far annually In the way OF guarantees ana
expensesupon them than from nl sueh sources
II this should so then quito clear that taking inc
net from s road proper it cannot pay 40
per cent upon $2l0OoOOO OF stock in addition W '"o
amount already issued.
But there Is another in which this report must w
looked at How far do the receipts bear due
to the business donei How far do the. "pera.ns oN
peuses bear due proportion to the receipts ana 'rao
on the road 2 To the stockholders and bondnoiu'he
pubc these two questions are fraugh with the utmost
Importance There is but means afordeu any other
person than an accounting officer OF tue Coinpany oi
forming any opinion these subjects lie must look 10
their former reports and draw his inierehces from
comparison OF the of 1879 with that OF previous
years Take for instance tho year ioO' III 0on" VII"
1872. ,sa1 ,S-o
SHa9c TaSSSuScrS moyed 27os,aO SiSo5sS 90
Gross earnings. .sl74591G9 s23Gi2.S!5 g
Operating expenses. .$l32O'O0S sl37Gi.61J %
Iis to be observed that these figures show that the
number of passengers carried in 1872 exceeded those
carried in 1865 by something per cent and that
tho tonnage moved in 1872 three times the
amount moved in 1865. Making full allowances for
lower rates Though do not know that they lower
il still would that the receipts from the business
Of 1872 should have been at least double those Of 1865 III
So they should have reached the Of $3iols33s They
were in fact, only S22Ol2525 81 The gross working re-
in 1865 In fact the increase OF receipts only 90 per
cent in eight years, instead Of being doubled in -four
years. 1t can be Of but little benefit to road
to double treble its business If the receipts
are be increased proportionatey Mr. Scott said
40 the meeting of stockholders That at every four
years the business OF tho Pennsylvania Railroad has
doubled the preceding four years. He did not say,
however, that the receipts doubled four and
it is question Of grave doubt whether the relative
dmnutOn Of receipts shown in the business does not
prove that the larger the business the more 1t viii i'm
pOveIsh the Company There is another side OF the ac
count of equal importance TO stockholders and bond
holders alude to the operating expense account have
already shown that the actual business tonnage trac
for 1872 the whole than double that of 1865
1t would that the operating expenses for
should have been double those OF 1861 that he true
then the operating expenses Of 1872 would be 265Ol6
as reported they only S136i673 Oo showing rea
tive reduction in cost of $l2,775443 o. The figures
have given present strange anomaly. While the pas
sengers carried were nearly double, and the tonnage
moved was three tunes in quantity, the receipts in
creased but 20 per cent. This is stir less remarkabe
however than the other fact. that the operating ex
penseS on this prOdgOus increase Of business were less
than four per cent greater in 1871 than in 1861 This
wonderful economy in the management Of great work
may be Effected by schargng TO construction account
items really belonging to expense account.
1t may he that the facts thus presented arc entirely
consistent with healthy condition Of the Pennsylvania
Railroad Company. But am unable TO see it IN that
light Low rates of freight fast freight lines. drawbacks
and inside companies and arrangements may ac
count for the very small increase of receipts. But these
will not for the low rate of operating expenses
as stated Each additional locomotive and train will
cost quite much 10 the road those which
preceded IT, The wear and tear ohe road is as great
under the passing Of train another all other things
being equal Itis doubt true that the proportion Of
the operating expenses will vary or less from
to year Still this variation cannot account for the ex-
traorinary state OF things presented in these reports.
II the expenses had increased only % per cent the
increase OF business in echt years. it will he that
the whole amount which 10 per cent dividend in 1872
was based would have been absorbed expenses, and
that without the proceeds realized from the sale of stock
and bonds and the creation of floating debt, diyi
dens could have been paid What is true Of the COM
parison between the years 1865 and 1872 may be
ticaly affirmed Of several other years. In order that
the reader may make these calculations for himself
append the tables taken from the reports from the
wear 1861 70 1872, inclusive