The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-03-06
A Model Annual Report.

The annual report of the Pennsylvania Rail
road Company is out for 1884 and so complete
that no one can experience any difficulty in un-
derstanding the condition of the great property.
The net income of the main line and branches
Cor the year was $40. 1859 This is diminished
by a loss of $685. 536 on the New Jersey division
and by trust and other obligations to the amount
of million and half more, leaving an actual
income OF So 0O1, 212, out of which was paid a
dividend of 7 per cent, with a balance of ST.
440 425 transferred to the profit and loss account
While the gross and net earnings of the lines
east Of Pittsburg show marked decrease from
1883, this falling off is not due to an actual
1irninution Of business, for the volume Of tom
mage and the number of passengers carried on
Ghese lines greater than the year before
1t is due TO the reduction in rates. caused by the
general trade depression as well as by new and
excessive competition. And while there was u
falling Oft IN the amount of through business.
the local traffic largely increased, the local
homage reaching the unusual proper
ton = OF % per cent of the whole
The lines west of Pittsburg, which in 1883
yielded a profit of 1912 660, show nst loss of
1861, sci Here there has been g. positive de-
crease of business while the competition among
rival roads TO control divide the diminished
traffic has forced a reduction of rates, (which
questionable whether any profit was earned
thereon This point is one of especial sgnf-
canoe not only for railroad managers but for leg
islatoFs who think that they can solve the whole
railroad problem with an act of assembly. The
aggregate gross earnings of all lines were $g7.-
S49. 674, the revenues of an empire; and although
the net earnings do show a decrease Of $500,
9l6 from the previous year, they nevertheless
attain the enorfnouse sum of 1873, 40. 5JT. a re-
suit which no corporation III the world has ever
shown under such conditions. A company that
PAYS a per cent. dividend in these times and
carries over surplus can defy any ordinary
Vicisstudes OF trade. The PENNSYLVANIA rail-
road has had It's perils, bat IL has long passed
them, and in the possession of a vast svStp,,
Of pneGualed completeness and excellence
whose value is constantly augmeAtine il IS
ever ready to meet the demands OF its contin-
uaIiy expanding business, and by the efficiency of
its service and the energy of its direction to hold
its leading place among the great conservative
forces Of business enterprise. In his general re-
marks President Roberts says OF pools aud rates:
'"rhe condition Of the general transportation in
terests OF the country fully contrma the correct
ness OF the views expressed in The last report IN
reference TO the maintenance of the present
pooling system, and while your management
have taken no active steps towards q direct with
drawal therefrom. yet they share the opinion,
with other largo transportation interests of the
country, that its further maintenance under
existing arrangements can hardly be productive
of good, either to the public or 10 the railway in
ferests. The rates forced upon your manage
ment by undue competition OF other hnes and
Which In many instances were so low as to make
questionable whether any profit was earned