Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-03
PITTsBURG. TUESDAY, MAR. 3, 1891.
A GREAT REPORT.

Literature of very interesting deserip-
ton for the large portion of the public in
terested in the operation Of the Pennsvlva-
mia Railroad is presented in this issue in the
shape of the full annual report of that COM
pany. 1t is a document which always pre-
sents impressive figures Those given this
year are more striking than ever for the
magnitude of the operations shown.
The report shows that the business OF 1890
on the entire system controlled by the Penn
sylvania Railroad was the largest ever
known In the history of that company, and
if we mistake not, greater than that of any
other company in the world. There are
other systems which control greater mile
age, but none which has attained such i'm
posing totals of traffic as the moving of 137,-
O00, 900 tons OF freight and 81, 600, 900 passen-
gers in a single year, with gross earnings of
S155, SOC. 600. There is disposition in the
report TO consider the figures as not all they
should be, because the net earnings have
not increased in full proportion to the
volume OF traffic, "a result attributable to
the reduced rates" as the report says. But
the real object OF scientific railroading is to
bring down rates by economy and thus to
enhance business so that on the reduced
rates an increased profit may be earned.
This object was fairly attained in the past
year, as is shown by the fact that net earn
ings on the entire system increased s., 400
000 last year. The same policy is still
capable of securing an enhancement of
h,-+ I,ar nf olo
of charges, although the managers of this
company are conservatively slow to per-
ceive it.
The returns to stockholders from the bust
ness of the company gives no reason for dis
satisfaction, Out of net income of S11,-
425,00 on the main line, 81, "a, 900 was
paid out in 81 per cent of fdividends. OF the
remainder, 81, ,564, 600 was devoted to extraor-
dinary expenditures arising out OF the
foods, and s., ,949, 600 was passed to the
credit of profit and loss account which now
contains a balance of S22,O17. 900. This, in
addition to the colossal traffic of the CON-
pany, contains a double assurance to stock
holders Of the continuance of dividends.
Not only is there over 81, ,000, 900 of margin
for dividends in ordinary years. but the
steady accumulation of fund on the right
side of the profit and loss account, gives the
stockholders a certainty of moderate divl.
dends approximating that from trust COM
panies or government bonds.
The analysis of revenue and cost of freight
per ton per mile on the Eastern system
shows that the average earnings are .655c.;
The average cost of transporting .463 thou
sands, and the average profit 1929, all of
them being decimal decreases from the
figures Of last year. This shows the work of
reducing rates is going on with the result that
the reduced profit per ton per mile was more
than made up by the increase in the aggregate
ton-mileage. But the figures can but give
point to the suggestion of The DISPATCH
that the low-cost and fundamental iron
freighls Of Western Pennsylvania are
paving charges considerably above the
average for the whole system.
These and other points showing the high
standard of management that prevails on
the Pennsylvania system, will be disclosed
by careful study of the report published
elsewhere.