The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-10-09
ESHNEEDSMPROVEKENTS
'..ruDENT DELANO DRAWS A
NORIL FROM RATE BILL

az, mat He Doesn't worry About Low.
'@.,sd rates. hut That Competition IN
ss,1ice VIII BE Very Keen-Passenger
T,,mo Less u the surplus Grows.
. ,hs annual report OF the Wabash Rail-
ny A. nelano, the president. says that
~. result n the rate bill the railroad COM
ss.,;,ion Of the future is to be q competition
.nnplying the public with facilities for
- passenger and freight trafio rather
~ ~ competition in rates. On this account
!. agnes that the company must place
~, IN condition 70 handle traffio al we'll
D.Scbeaply as its competitors and strongly
- the adoption OF the plan for the re-
1s.on, Of the debenture bonds and the
w." 'u,. Of 5000. COG, 900 consolidated mortgage
bOnds.
,..or,s clearly imperative that rates shalI
LN.ed. stable and universal in their apph-
..,Ion and that facilities shall be adequate
I'D inpartially provided. As a just cor
.sative. however, there seems to be now
Eating a wider and fairer tolerance Of
.,ss remunerative for the service rem
a.rod The management is not appre-
S.rsive Of serious reduction OF the present
..,le ~ rates (which in our territory are
,srv low. but it is apprehensive that unless
.nnle provision is made for considerable
-ni,al outlaws the company will not be
NJ 10 fully meet its obligations to the
,Tblio in the way Of facilities furnished.
PGsIn short. il is believed that the COM
,.,tjon OF the future will be in the char
alO,er of service and facilities offered to the
m,bJic and that the profits OF operation
r,nns, grow or Ne reduced and disappear
n the measure in which service and facili-
,s are advanced or suffered to halt and
Continuing Mr.. Delano notes that this
"a, an EZRA of revolutionized views Of what
Constitutes railroad efficiency" Great
srsIems To the north and south OF the
Wabash, he says, have had the benefit
n large capital expenditures, while the
wabash, with its debenture mortgage "a
an obstruction to new capital, has been
largely restricted to its surplus earnings
Ssiis cspitai fund and with this fund limited
Nv the provisions of the mortgage.
In urging the retirement of the d~ebentures
,od the issue Of bonds Mr.. Delano says
,hat since a large part OF the bonds will
ba needed to retire the debentures, other
sustinc liens and equipment obligations
and notes the remainder of the bonds will
furnish a fund by no excessive
lar needed improvements. He prophesies
tbst with the improvements made gross
sTnings per mile will be double the present
Uerage OF $4,000.
Gross earnings for the year ended June 30.
ivs, we're 325 .0lS, 1913, an increase Of $31s ,776
over the preceding year. There was a de-
crease. however, Of 81, l94, 40 in passen ger
Awnings. partly because in the previous
year was embraced most of the heavy
tahfc Of the st. Louis exposition. Operat-
nR expenses for the year just closed were
uSO7IsS7, a decrease Of 81, AIS ,557 and there
vas q decrease from 1902 per cent. TO 1921
IN the ratio Of operating expenses to earn
hEs. Accordingly there was an increase
4. dt2, IA, 1886 in net earnings, which were
HSS7, I9l for the year just closed.
Passenger earnings were Affected also by
the opening of q rail lines between Chi
mro and ~. Louis and st. Louis and Kansas
city, by the competition of electric lines in
Illinois and Indiana and by the reduction
q passenger rates in Ohio to two cents a
nile. The report draws the conclusion that
The company must depend very largely
4 uponfreight traffic for it's earnings.
The surplus for the year was $500 1882
which was charged to profit and loss ac-
count. That account now has a credit bal
mceof SPAS, 200, as against a deficit Of S515, 4ls
stthe close Of the preceding fiscal year.