The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-03
BIoTLEs AND s1nErr alrLWArs.
The Use sf the wheel Reduces the Earn,nss
OF fnnnsylvania Traction Compnaies.

- NH
The Use 81 the wheel Redaces the EarniuGs
OF pennsylvania Traction Cempnaies.
HARRlsBuRa, Pa, Doc. r. Major I. d.
Brown, Chief Of the State Bureau Of Railways,
to-day completed his annual report Oh street
railways. Tho data with reference to the total
capitalization shows hat the amount Of capital
stock outstanding June so, 1897, was sl43,.
4s9,3o9; funded Indebtedness. s42,sl2,430;
current liabilities, $34, zee, 976, or a total capt.
taliSation OF 1920. SOS, 7l5. OF capital stock
and FUNDED Indebtedness outstanding tho cor.
porationS themselves own S52, 314.349. While
there nave not been many cancellations or
mergers In law. yet practically there have been
a largo number Of cases where traction COM
panies. "a authorized by law, have leased tho
lines OF other street railway corporations upon
a nominal rental, and tho stock or n largo por-
ton OF tho stock Of the leased company is as
signed to the traction company, tho stock
holders taking In lieu thereof tho stock Of the
traction company.
Major Brown says the great advance in the
total capitalization during the last six or eight
years Is largely due to tho fact that whom q
traction company takes charge Of the lines by
lease, merger or consolidation, tho capitalize
tion Of tho traction company is made usually
Two or three times as great as was the com
merged. or consolidated. BY this process Of
controlling the lines of street railways in Penn:
sylvania, the stock capitalization per mile Of
road is increased to an amount far exceeding
equipment in the United States. He says It
process sG referred to Is an effort BY the manage
ment Of the street railway enterprises to mako
them pay q dividend upon a much larger capi.
taliZation than fairness to the public would
Major Brown says the total gross earnings
from other sunrces. SO. 81 L. $40. or n total In
conle Of $27. 1896, 4s9. The receipts have fallen
off in q measuroable degree from those of last
year. Major Brown says:
in all probability the use Of the bicycle
BY BUSINESS people, and pleasure, seekers Is the
ceipts of many street railway companies.
In, cities whore favorable, conditions do not
hills hills arc ref steep s"s and i not easy 81 ascent snS' or de-
scent. the railway companies probably nave
not been affected BY the use Of the wheel to 50
many others 1t cannot be gainsaid that the bi.
cycle has become a most serious competitor Of
To reinforce this view of the case an observa-
ton was made on Third street in this city dur
to 8 in the evening. During that time e,07s
persons per passed = s 2 given S pe9i1at; 1.9Ss in the &c cars S'
cycles and 80 $40 per cent. on tho cars. or
more than two to one In favor of the wheel.
riders affected the receipts of the traction COM
pany can only be conjectured.
The total cost Of road and equipment is re-
ported to be $l1S,25o.o14 and Major Brown
suggests that the disparity between these fly.
ures and the total capitalization of 1920. $685.
715 Is SO great that it can be accounted for only
In one way, and that is by the fictitious issue of
stock and possibly of bonds.
The total Of operating expenses is given at
SloiSao'S Sebi, si.sis, o Sli?g ]ye ;ssS; i sa'7ss'5s Sn
other expenses. S942,4si; dividends. $5.2l4.-
s74; q total of $27,455,9 43. II these figures
are correct, then the disbursements have by q
small amount exceeded tho income during tho
year; The report shows that there are in the
4.9iI motor cars and 400 other cars, or a total
Of 5,413, and that tho number of employees is
1909, to whom was paid during the year
is shown to be 400, 23.41S
During tho year there were 10 passengers
killed and $40 injured. Grade crossings seem
to have been responsible for many Of the acct
dents.