The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-01-13
Condition of the Reading

The report OF the operations of the Phil
adelphia e. Reading Railroad and Coal and
Iron Company for the year ending Nov. 80.
1895. shows the following figures:
Railroad Company-lEarnings from traffic.
s9.672, 1896; profit from other sources, $751;
0s9.46; total profit. $40. IS, 252.S 50.
From this sum are deducted rentals, in
terest account. profit and loss, taxes, ter
minal trackage, equipment payments and
improvements. aggregating S, 922, 066.S7, leav-
ing a surplus of 1891. 1855.
Coal and Iron Company-Gross receipts.
$24 O0O 1850; gross expenses, $24.7SO, 607. 81,
leaving a loss of s6s9, 81. To this is added
interest of $1.17s.1s2. leaving a deficit of
s1,S75. 9si39 Total deficit for the two COM
panies is si.5ss, sO5A.
As the coal and iron company did not
earn its operating expenses, the railroad
company advanced s656,27O. the sum required
to pay so much OF its interest as is guar
anteed by the railroad company. The in
terest on the general mortgage loan.
amounting to $1.7Ss, 6O7.55. Is included in the
interest account. so that the net earnings
of the two companies were sufficient to pay
all charges anterior to the general mort
gage and to leave a surplus over these prior
charges of $249. soc H.
in the item of merchandise traffic. which
shows an increase of $91S, 096.14 over 1884.
and OF S1SS,4l7S over 1893. This gain was
caused by the general renewal of business
activities within the territory traversed by
the Reading railroad system, the various
iron industries especially having been in a
much more prosperous condition tnan Tor
in revenue of 500. 573.3S over that for the
previous year. but a large loss S1, 337. 979. GID
as compared with the earnings of 1893;
Do fra n a al
earnings of SITS, 1863. wholly as result of
the competition by suburban electric rail-
roads. The steady working. OF mines and
lew rates OF labor and material reduced the
cost OF coal production lower than in any
year since 1872 but on account OF the low
pSss o the eT s oss was than
made up by the gain to the company from
the additional tonnage produced.
After reviewing the various improvements
made during the year, the report states:
1.-The earnings of the Reading companies
were sufficient during the year 1895 TO meet
promptly all the accruing obligations ex-
cept the interest on the general mortgage
bonds and the payments on equipment pur-
chased before the receivershfp. The hold
ers OF the equipment notes agreed TO extend
a portion of them on favorable terms, and
the balance-S1 OF, Sl3.6I-was paid in cash
The fixed charges of the railroad company
decreased sl22 s47.sS. as compared with those
of 1884, and those OF the coal and iron COM
pany decreased $l17.972.56. The chief lnhu-
ence affecting adversely the business OF the
Reading companies during the year 1879 was
the unsettled and unsatisfactory state of
the anthracite business"
The report then rehearses in detail the
controversy with the different anthracite
opera tors on the question of the division of
tonnage. the Reading finally consenting to
conduct its mining, during one month, on
the plan of working only three DAYS OF ter
hours each per week, which showed that
its share was over q per cent. which had
always been claimed by Reading. The re-
port declares, however. that when the other
~.x.a N
shown that the Readings proportion ex-
ceeds % per cent. The report closes with a
history of the proposed plan of reorgan-
ization, the details Of which have been pub
-