The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-10-08
BIG DECREASE IN
c. 0 NET income

U.W U, NL ] lNUUlYlL
NEARLY Million and ii Quarter
Under Record for. tile Pre-
ceditlg Year.
rIe, twenty-nintllgn nnual report of
tic Chesapeake and Ohio Railway Com
|ipnny for the fiscal year ending June
goth Issued yesterday, shows ii de-
crease In tho not income amounting to
ST. d,22i2l over tile preceding yenr.
Charged against the income account,
however. is $1.847.554.5G. for cxtraortli-
mary expenses, the largest Individual
item OF wliicl, Is 1926, G01.S4. for ching
Ing the line from st. Adams to Bars
1.boursvillc. There Is an Increase OIL
Ian Increase of 81 $50, 651.1S In operating
|'eNpenacs.
Gross EARNINGS
The gross earnings, from freight
passenger and express traffic, trans
lportator of mails and miscellaneous,
were s25706.s6O.9S, against s24.6O2,-
ls0SS.49 for 1906, or an Increase OIL
l'S1,133,ST2,4D. 5
Expenses for maintenance OF way
lana structures, maintenance OF equip
lment, conducting transportation, traf-
lific and operation. and general, under
the head OF operating expenses. were
si6.650.3 o6.59 for 1907, against $14,-
sG9, 649.14, or nm increase OF S1,7s0,-
G57.3S.
There were 4,269.36o passengers car
RED, an increase or 15.1. Tie number
carried one mile was 226.660, gag, an
increase of 1i.2 per cent. Passenger
revenue was sbsss,1so17, an Increase.
of 1872 per cent. Total passenger train
earnings were s5.6s9,79s.b7 an Increase
OF $6S4.i32.42. Earnings per passenger
per mile were 2.157 cents, an increase
of 90 per cent. Number Of passengers
carried one mile per mile OF road was
l124,035. AN increase of tel per cent.
| Passenger train mileage was 4,127,754,
an increase of 1871 per cent. Passenger
earnings per train milo were s1.1S, an
increase Of 1.3 per cent; Including
mail and express. they were sl.3S, the
same as for previous year.
Equipment In Service.
The equipment in service June 30tl.
1907: was as follows: locomotives
owned, 457; increase. 80: locomo-
lives leased (inder equipment trusts,
2lS; increase, 40: passenger cars
owned Sol: increase, 81. freight,
and miscellaneous cars owned. 1888,
increase. ESQ; freight cars I'D ed
}(under equipment trusts). 1905 In
crease, 3.196.
The number OF locomotives owned
was increased by tho purchase of 80,
of which IS We're charged to cost OF
equipment.
What President stevens Says.
In his report to the directors, Pres
ident George w. Stevens says:
Gross earnings were affected by
the unfavorable weather conditions n
during the winter. 1nonths. while
the expenses We're largely aug
lnented by the increase In cost Of
materials, and the general increase
in wages The traffic on your
West Virginia and Kentucky lines
was frequently interrupted by land
slides and by floods in the rivers,
the train service upon your Gin
cinnati Division having been sus-
| pended at one time for an entire
week.
1T viii be seen from che forego-.
ing statements that while the rail- 81
way earned more than afive per "a
cent. upon It's apital stock, a divi-
dend of but one per cent. was paid
to It's shareholders. III no year
since its reorganization has the
amount paid to them exceeded that
sum-. The company, Instead of dis
tributing fair share OF profit to
theESowners OF tho property. was
| compelled in order to- meet the
| needs Of It's shippers to apply its
entire surplus income beyond tile
one per cent. referred to-, to the pur-
chase OF additional equipment
and the furnishing of Increased
facilities for it's traffic. It cannot
be seriously contended THAT the
traffic over your line has been ,ln-
duly burdened, when the average
rate received per ton per mile was
but four and one-thlrd mills and
per passenger per mile not quite
two and one-siXth cents. Your d.
| rectors feelsthat the statistics here
with submitted show that your
property has been managed with
| efficiency and economy notwith-
standing which tho margin OF
| profit has been 50 small that the
return to its owners has been en-
lyiinadequate tie, and ono that cam
not be justified in any line OF bus
tness. 1t would. therefore seem 10
be to the interest of the commu-$
mites and people served by your
lines, that your revenues should
not be lessened or your credit in
jured by further reducing rates
that arc now inadequate to meet
the physical requirements of the
property and yield the return
which you, as shareholders. may
rlghtfully and reasonably expect.
Contrasting New Rate Law.
1t seems clear that with all the
| leading railways in I he section
served by your lines the time has
arrived when the Increased volume
Of traffic is forcing upon them en-
81 ceptionally large expenditures for
double track, equipment and yard A
facilities. and, as the Common
wealths through which they pass
S can only prosper through the con-
tinued development Of the mineral
and other Industries which are
served BY the railways, It neces-
sarily follows that any legislation, e
which Injuries their creditland pre-
yentssthe sale OF securities at fair
prices, must work as great a loss
to tho people as to he ilway
shareholders. Believing that tho
communities along the lines OF your
system must In the end recognize
S the accuracy or this ~ rtatement,