New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-06

PENNSYLVANIA RAILROAD LINES EAST IN PENN
sYLvANIA FOR THE YEAR 1906
Averase rate Per cent
cents business.
assaa ZIP excursion tickets. sS@e g
Total average rate ............ 2O5S 100
and dividing the total by the number Of miles
The rates at which these various classes Of
sheraton 0; the extent and fPsqaen cP Of their
fro1 t una Of travel resulting there
In order to determine whether the average rate
sary to know tie average cost Of carrying pas
senger one mile. II has been favorite argument
an error for at least it can be determined with
II - b g. IS ana ana paIlicutsriy 50 SIe ii
IN fayo: Of making the cost too low. The method
To all items Of expense. incurred solely on ac-
count Of the conduct Of passenger business, are
conduct Of both freight and passenger business in
bears 70 the total uassenEer and freight train
mileage passing over the road under consideration;
the relative division Of which can be- defnteiy
axed in accordance with the service rendered.
These items Of cost being added together and
train miles, the cost 4 passenger train mile is OBJ
tanned and its apportionment between passenger,
space assigned to each class gives the amount
chaTgeahS,,e to each Taking The total amount
ing it by the number OF miles travelled by all pas
thus ascertained we have the average rate re-
and Il the derence Is not Sos sucon, to Yield FAIR
return ,he capital invested. plus a proper mar
additionsi can,a FOR improvements needed to con-
duct properly the comC2ny's business for the &C
is too low and either the maximum rate should
the maximum
That the margin or error. If any. by this method
cost a passenger a mile than is actually the case
Will be TeeoEnized when It is considered
over freight trains which are greatly hampered
. That the necessity for high standard OF
track maintenance is due TO the high speed OF pas
3 That the necessity FOR expensive signalling.
telegram and train dspet ching Is chiefly due -
passenger trains.
the obligation TO protect This phase OF the ques-
ton seems not to have been considered by the
mum rate charged by railroads was made a po-
litical issue. and many candidates were required
EN- oi fr,oiI,. e'5hIniteS yar tisr ro1sderation
and as a result. thorough investigation was
Were asked FOR either from tho railroads or that
department OF the state government specially
charged with the securing and recording OF fun
data, and which. II carefully studied would either
have furnished all TIE Information neee5t ,ar Tor
pointed the way ask from the railroads such
additional data as might have been necessary.
rate fixed Is unJnss peg 10 5noi', s aoari ~
cost and receipts. calculated In the manner de-
scribed:
statement showing passenger traffic within the
| ctaTe ~ Pennsylvania for tho year 1873 covering
Sso Ids S IN the pennsylvania Railroad system east
| OF Pittsburg Erie and Buffalo
Pss:.nssr : sa5ess: S7ss50
~, na.sense, earnings IN Pennsylvania S558l2O2 80
Iess proportion OF taxes chargeabs to pas c.o 40, "a
p.,.n.. s4ssi.0IO ~
q Pss cent en-, interest e s 10, 2,
B %9ssg Pvs Business ss oaa co
Dss 81 Pas of Eeres aSd $o7
| To produce credit that will secure add
tonsl capital 10 provide additional fact
stantIy Increasing business tho Pennsyi
aFP@' St mo- less s5 ae sa Rs fn be @ R
the road witbo' cspitalzing the e1pend
| ture OF thi, ,un the passenger bust - al, a.
should M contributed ............- 2I1'doo W
Amount which PASSENGER business a,. 1s,s was
e Saeaie bd inSeaea ana sasass4 2s
| cent OF totaD should be reduced from 25l
cents a mile 20 two cents mile the re-
amount to nth Of 81 per cent Of ..o..-s 8,
s2G.2S4.732. equal TO ~"oV''o' %
Amount passenger business would
been short 1906 OF earning fair
return on capital invested and providing
for credit II maximum had been - .
two cents mile Observation-Disclosures. SoVV'Z<%Vs
would draw your attention TO the fact shown
by these figures:
F4rsi-Thst in 1908 the lines east
| burg failed 70 per the cap
ftal invested IN doing passenger busI- 800 90 "a
SoJVOVu
Second-That II had been the two
cent basis. the receipts would have been -. - -
Making the deficiency without any con- -
siderafion OF "A surplus) $SZe0eVOVV
Should you desire personally or wish to have the
Secretary OF Internal Affairs, examine into the cor
rectness of these figures or further extend their
scope II Will give me pleasure to place the services
OF our controller and his department at your uls-
posal
| In conclusion. sir, permit behalf OF the
stockholders of the company represent over 40uO1
IN number, q per cent of whom are women. ana OF
q 600 shareholders in subsidiary companies TO ask
that you disapprOve this measure which Is GER
talniy unjust To them and may be advantageous
to large portion of the travelling public The an
tcipaton OF such legislation IN the various states
has already substantially contributed toward the
| enormous shrinkage In the value of securities
| which has taken place. and will not only continue
but probably accentuate the present unwillinsness
Of investors to advance the capital necessary 20
provide increased facilities TO meet the growing
as they feel that such investment VIII
| lack the protection of the state ana ma
tional governments, 10 which they look Tor pro
1Maa n#