New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-03-05
P. R. R. ANNUAL REPORT
GOOD GAINS MADE.
Gross Earnings Increase S14,917,89O
and Net Income of s., 57I,78k.

The report Of the Pennsylvania Railroad Com
pauy for the year ended December 81 1906 shows an
increase in gross earnings. as compared with the
results Of operation in the preceding year OF nearly
S5000o0a. and substantial increase in net earn
ings despite the enlarged operating expenses. due
70 higher cost OF labor and materials. The income
account and condensed balance sheet will be found
on the financial page.
The funded debt, including mortgages. real estate
and ground rents on December 81 1906. was $751;
Hs 20 g. decrease Of 1921 l76 o. The entire cost
az the securities Il other corporations held by the
company on the same date was Sl94 769, 7l9 o. and
The direct revenue received therefrom during the
year s1l74lls4 80, being 6O3 per cent upon the
cost
IN the 1906 report the list Of stocks owned" in
Guided g4s0 shares Of preferred and 3O2 9S3 shares
OF common stock Of the Baltimore & Ohio. l0l 800
shares 4 Chesapeake & Ohio common and 20330
shares Of common stock and 55.0l0 shares Of pre-
serred stock Of the Norfolk & Western In the
present report are shown still owned 1926
shares Of Baltimore & Ohio preferred and 5725o
shares II the common stock. and 60 46o shares OF
Norfolk d Western common and .. shares 81 the
preferred The stock represented by the differences
between the 1905 and 1906 figures Of these several
items was sold 10 Kuhn. Loeb & Co. who also
bought the Pennsylvania entire holdings Of Chesa-
peake & Ohio stock. The profit from these sales.
rs already noted Is credited TO the profit and loss
account. Against this profit there has been charged
of OF account Of the cost q the construction Of
09 and the balance Of s2200S4S transferred TO the
extraordinary expenditure fund.
The number of tons Of freight moved on the four
grand divisions east Of Pittsburg. and Erie in 1875
17257l 06S. increase OF 15267,296 or 9ls per
cent: the number OF passengers was g. 10s70S. in
crease Of 6326 $50 ll34 per cent. The number OF
tons Of freight moved the lines west Of Pittsburs
was 1928 o09s an increase Of 171S442 The number
Of passengers carried was 80 sI3.56O increase OF
2153125. The gross earnings Of all lines east ana
west Of Pittsburg for the year 1906 Ss5.ssS-
Ig5 a: operating expenses, S1l543,76S o. and net
earnings So S54. 500 D. increase in gross earn
fngs. compared with 1905 OF S29S2S.56 4S and an IN
crease in net earnings Of s03s5lse s. There were
s63e5Sg7 tons Of freight moved On the entire sys-
ten being an increase Of S7,g7Ss3S tons. and 49,
63s6a passengers carried an increase Of l49T's-'.
The volume Of both freight and passenger trafiic
continued show exceptional increase ltiat
for 1906 being greatly in excess OF that for ls ana
much the largest in the history OF the company.
There was slight increase in the average rake
and in the net earnings per ton mile II VIII o-
noted. however. that the higher scale o. wages
granted TO the employees went INTO eilecl 0l'-t %
december / 1865 and that there was STEADY au-
&C in the rrf,es of all materials purchased by
the corlpanv both Of which must materially AIeel
the cost Of transportation.
The report refers 20 the SoAooooe Of STOCK ana
s1oa ar a Of bonds which the stockholders az l-e
annual meeting next week viii be asked 10 a~'-
ize and repeats tie announcement recei''-s -
sha, the captal requirements for the year VIII OS
-. .ros,, the issue Of So 600 600 short term notes.
adding;
The promot RECOGNITION Of the growing needs OF 4
the country increased and Improves Ia.tH e.
necessary additions and IMPROVEMENT 20 y sHi
and equipment having been MADE OF Ilo9l ~ o-l.to
terms both as 70 the % the work and me rates
which The funds were sesuIel- D. ti--....-
rnands Tor increased capital from other rdl!NayS;
Influenced by the same reasons willcL e2E-5IIsL
your acton, and substantially nom az Di ~
81 Industry have made the present rates Tor money
exceufionally high This, together with ne n
creased cost Of labor and material, the !eSst-eh,
bc-b e+s+s a-d rl7rriri-aI 10 increase take,
duce rates and fares, and force u3on ne raj 81
Of YOUR company reduce lis ca2tr' esi@aai -rcs .
10 minimum avoid nfW uTffHf--+--'Es' ana &c
strict expenditure for the p-esen- 10 5-eh FcrK as
Is now under way. and 0ICst Be ccf-I iet-1-
Describing The work projected fer the coming s
year TIE report says in par:
The principal expenditures for che current year
Will - in completing The - z-.scEs q the for j
track system now llr,iar w ca th@ Middle Pitts
burg and Western Pennsylvania divisions upon TIE
tunnel extension into ard through New York and Z
right OF way and real estate required for the relief
lines referred to IN the last report and upon add
tiCnal motive power and equipment
The DO gress upon the tunnel extension has been |
quite satisfactory and While the work under the 4
under me Hnos0n lSlFer vas pushed forward 80 /
successfully that September u the LAYING of
q the tunes was Completed from W et.laWAen 10
Manhattan. and on october the second tube was
il Place The WORK Il lining these tubes with con-
crete Is now under way.
The excavation for the station site in New York
between Seventh and Eighth avenues is practically
finished. and the foundations for a number Of the 4
columns necessary support the station and the
under the streets between the North East
rivers and in Long Island CITY beyond the East
One-fnUrth Of the excavation and lining for the
your tunnels under tho East River.