Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-03-03
GENERAL REMARKS.

In pursuance Of the power conferred BY the
Shareholders at the last meeting and for the
purpose II meeting your capital requirements,
% tssue was made March 10Th, 1907 under the
terms ef an agreement with the Fidelity Trust
Opsapany n Trustee, Of 10000 O00 three year
I've per cent. collateral notes. This course was
aA4ptsd by reason Of the fact that under the
Apaheisl conditions then existing, long term Sc
cuYities could not be placed on satisfactory
bssis.
There was a heavy increase In the volume OF
freight trafac until the month Of December, the
tonnage and ton mileage for the year showing
large gain and the revenue an increase Of more
Than twelve end 4 half per cent. over the pre-
viess year; but there was a material reduction in
the gross and net earnings per ton per mile.
While the increase in the passenger tramc was
nyeh below the percentage shown In 1906 over
1905, being but nine and thirteen one hundredths
par cent a. against fourteen and forty-one one
hunAyedths per cent, the gross revenue there
1rsa tnereased barely four and one-haf per cent.
- compared With q gain In 1905 Of fourteen per
esnt over the preceding year. The expenses,
oiso were largely increased, the cost per passen-
~ Pr mile showing an increased percentage OF
nearly thirteen per cent. and the cost per train
mile IN Increase Of nearly seventeen per cent.
A. Q result there was a reduction Of nearly one
thtrd in the net earnings per passenger train
nile; and while this was due in part to a more
accurate distribution Of expenses as between
freight and passenger traffic. 1T was clearly
sAoWn that the lower fares which prevailed dur
ing portion Of the year had not stimulated traf-
&c to the extent necessary TO Offset the loss Of
sevsnue and the higher cost Of operation due to
the increase In wages and cost of supplies. 1t
may be noted here that the average rate received
upop the entire system during the year was less
than two cents per mile.
There was q further increase In taxes the
eDospt paid upon your own property and upon
tat Of the lines operated BY your Company for
tie year agsregatins $387s, 1921, as against
e3,71S.o 50 for the preceding year.
After meeting all liabilities and paying divi-
dssds sSssesating seven per cent, and So. $780,
GA e on account OF the maturing principal OF
Car Trusts, there surplus Of So. 1l2. 075 Al,
Of which q. geo. ~ was applied toward the
Extraordinary Expenditures Of the year. 81. $780,
o6o.0e transferred to the Extraordinary Ex-
penditure Fund, and $2,351 1873 credited to
your Prodt and Loss Account.
The heaviest OUTLAWS during the year between
Pittsburgh and Jersey City were upon the exten-
sion Of the four.track system on your Main Line,
the revision Of the low-grade freight line along
the Conemaugh River, formerly known the
Western Pennsylvania Railroad: the extension
and improvement Of yards and terminal facili-
ties at various points, the purchase Of right Of
way in connection with the construction OF
further relief freight lines and the perfecting
of ysur permanent water supply.
The aggregate expenditures for construction,
eqlipusent and real estate during the year
sDoa your Main line between New York and
yttsbusgh. including g. $50. 6e3. 72 on account
of3fhs principal Of Car Trusts. and 500. 600 on
aeslnt Of the principal Of Water Trust Ger
tfe(ats were SIS. S12 .455.8S. Of which $9.110-
7a9,b1 was charged to capital account. 81, $780,
s&S against the income Of the year, and