The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1906-11-27
RAILROAD PROFITS
UNPRECEDENTEDLY BIG
Receipts For Year More Than
Two Billion Dollars.
NET EARNINGS OF ss20,221,a59
Interstate Commerce Commission Re
port Shows an Increase Over
1908 Of 500. OOO,O0O-Figures
May suggest New Legislation.

AOOO VI epO = SOOOsOVI~~-~-L tAICO
May Suggest New Legislation.
Washington, Q. C.-Nothing short
OF stupendous have become the earn
ings Of the railroads of the United
States. During the year which ended
June 30, 1906, the gross income Of
the transportation companies reached
the prodigious total Of $2,319,76
030, a sum exceeding by a third of
a billion dollars all the gold and sill
yer coin and bullion in the country.
These figures, and others, are includ-
ed in a brief statement given out by
the Interstate Commerce Commits
sion, in advance of it's forthcoming
preliminary report on the income ac-
count of railroads for the last fiscal
year. This report contains the re-
turns for railway companies operat-
ing 220,028.44 miles of lines, includ-
ing lines operated under traffic rights.
This is about ninety-nine per cent. of
the mileage that will be covered by
the final reports of the statistics of
AdAANd JH 1OA Tic yCdl.
OF the grand total of gross earn
ings, $618,555,S34 represent receipts
from passenger traffic, while S1,640,-
942,S62 represent the earnings from
freight. The income from passenger
business was at the rate of S2S11
per mile, and from freight S745S
per mile. The total gross earnings
for every mile of railroad during the
to-
expenses during the year were ST.
532,163,153, or $696S per mile. The
net earnings of the roads were $751;
596,877, or $3.50 per mile.
The commission adds to this
mighty total $132,624,982, the
amount reported by the railroads as
income from sources other than oper-
alton and thus increases the net
earnings to $920,221, 1853. The net
earnings for the year ending June
80, 1906, were $4,000 900 greater
than was reported for the previous
year.
Against the net earnings this year
were charged as interest, rents, bet
terments, taxes, and miscellaneous
items the sum of $500, 386,554, and
as dividends, 1929, 406,59S, leaving
a surplus of $500, 4z8,707. The sur
plus for the year ending June 80,
1905, was $89,043,490. AS further
evidence of the prosperity of the rail-
roads, the dividends this year ex-
ceeded by $34,248,605 those of 1905.
Moreover, this preliminary report re-
lates to operating roads only and does
not include the statement of any div
idends paid by leased lines from the
income they received as rent. An
idea OF what these dividends may
amount to this year may be formed
when it is announced that the divi-
dends declared by subsidiary leased
lines in 1905 were about $35,750,-
coo.
The taxes paid by the railroads
during the year 1906 amounted to
$68,903,298. The Census Bureau
last week, in giving out statistics
showing the wealth of the United
States, placed the value of railroads
and their equipment in the year 1904
at $11,244,0 900, 00G No doubt this
has increased during the last two
years, but even on that basis of valu-
alton, the taxes paid by the railroads
last year amounted to six-tenths of
one per cent. on the dollar. The tax
payers of any community need not
be told that this is many times less
than the rate collected against their
property.
No doubt the figures of the COM
mission will furnish food for much
serious thought on the part of the
national lawmakers during the COM
ing session of Congress, and may fur
nish inspiration for further legisla-
ton. Public men who saw the sta
tistics say they justify fully the
passage of the Hepburn law last
season, giving tSe Interstate Com
merce Commission power to fix rates.
The marvellous total of passenger
earnings doubtless will be a surprise
to most members of Congress, and,
1t is thought, may lead to a move
ment to make more Just and rea-
sonable" the rate of fare charged by
most of the transportation companies.
That the commission will be asked to
use its power under the new law to
secure better and cheaper service
from the Pullman Palace Car Com
pany is already regarded as fore
gone conclusion.
The gross earnings Of the rail-
roads in the fiscal year 1906 we're
three and half times greater than
the total receipts of the United
States Government during the same
period Uncle Sans income during
the year was $697, 101,269, and this
was only $80,000,00O greater than
the gross income of the railroads
from their passenger traffic alone.
The net earnings Of the roads were
quarter of a billion greater than the
Governments receipts, while the
total gross earnings Appropriated
the national debt at the close of the
Civil War.