New-York tribune., 1908-03-03
|P. R. R. ANNUAL REPORT
COST OF OPERATION HiGH.

Laree Increase in Gross Earnings,
but Decrease an Net.
The fuu pamphlet report Of the PennsyNania
Railroad Company for the year ended Deceihoe'
81 1907 was issued yesterday and Is iouiid e'1e
where in the paper. 1t shows large increase
in gross earnings for the year and sishtiT
Larger increase In operating expenses the net eh-
ines as a consequence decreasing about SJ"e0
The income for the year compares as foi-
lows:
Gross earnings Of
operated - sie4 sl2 ses s4s. 9.ss2 Inc s1e0729i3
e1cudng taHss 1ls sas 1851
9nea ama leasa se7e1e4 s715.os4 Inc. 2s4.1so
Guiding taxes Sl23. .5sdol2 Sloo''=o'o'o i"S'S.o.. -
Ne6 ea gs o s41 22s21s sa27199o4 s14s2 ss1
ped, rentals paid
basjs boais net earngs 4s5 67ss65s Dec. 1slf5ea
Net oI fanns n SIG s.o a4s ss5 esob4s sTs.Io2
Interest from IN 10 s754az 12os7aes Dec. 14i1sss
Hire of equip:
and other items s11s.eIa eseees Dec ~ -.4-I.HV
INCOME so 14s ga s4s IA SOS Inc. s1.42s54s
FIXED s., rent; Tasds OF esslss 4i4o5ae 1s'77
Interest itS on bond 1o4oas7 7ss7s52 Inc. ao24sa5
fr,s, gTS rents ITS car 1sosen 151a2sa Ire. ss4ae
Total deducted s1s5es 2g7 siaofo5o7 Inc sso2l.'YI
NJ. ,,oor,s ss3 SIS O5s s$5 s74 800 Dec s2o'o244
Including with the Pennsylvania Railroad piope,
the operations of the Pennsylvania Cohlpan 80
the other lines of the system. the eraic I,o 80 % -,
e earnings for 1901 is found to be SO 'S99-'' '
increase Of $50 $3.50 over 1906; operating
cop t54 oSe an increase of s3 610.34 and net earn
ings $50 631. .4s5 decrease Of N22'Sof' a.
The number of tons of freight moved on the I,s o
grand divisions east of PittsDurg anu III z, m na -
was 224 227 O74 an increase OF 51S5s0ll or S'Vo pc
cont. the number of passengers was 613'o'S'S aii
increase Of 524S125. or s-45 per cent Ihers -
heavy increase in the volume OF frelsh' N
until December the tonnage and ton Hli7"7 "
the year showing large gain and the revenue di
t,-eas. Of moro than 121s per cent over the pre-
vious year but there material reducuon III
the gross and earnings a ton a nhlie- " H ~
the increase in the passenger traffic was IhuCh u
low the percentage shown in 1896 over Ese9 Oelli9
orlv Ola per cent as against 1+n per cent. the
gross revenue therefrom increased barely Al PEI
cent as compared with a gain in 1900 OF II per - 90
over the preceding year. The expenses also
largely increased. the cost a passenger hio
showing an increased percentage of nearly l" per
cent and the cost train mile an increase u
nearly II per AS result there was le0uo-
ton of nearly oRe-tnird in the net earnings a pas
senger train mile: and while this was due IN part
fO
tive en- freight and passenger traffic IL was cedllS
shown that the lower fares which prevailed during
a portion of the year had not stimulated tra1nc 10
the extent necessary to Offset the loss OF revenue
and the higher cost of operation due to the IN
crease in wages and cost of supplies The average
rate received upon the entire system during the
wear was less than two cents a mile
The expenditures for the year were confined al
most exclusively to the completion OF Work actu-
ally under way. Substantially all the improvements
h. for
the road in condition have been completed AS
result the average daily mileage OF the freight cars
moved over the lines increased about 70 per cent
between 1903 and 1907. The expenditures for the
present year will be confined to finishing the work
now in progress the main line and to the tunnel
extension.
The present condition Of the improvements IN
course of construction in and this city is de-
scribed in detail, the report (Which bears date
February 26) saying that 1t is expected that the
entire work upon the tunnels and terminal station
will be completed in 1910.
The total amount capitalized on account OF the
New York extension 10 December 81, 1so1. was *SJ-
al AZ but this does embrace the sums charged
off from time to time against income and profit and
loss accounts. These latter sums aggregated s25-
oeoOOo prior 10 1907 AMI from adjustments made
during the year large credits accrued to the profit
and loss account. opportunity was afforded 70
charge off the further amount of 100000 on ac-
count Of the tunnel extension, making the total
charges TO date against income and proht ana loss
accounts s3otO00.O0o.
Referring to general conditions. the report notes
the legal victory gained by the company In the
2-cent fare law case in Pennsylvania. and says:
The prosperity which had existed for a NUMBER
of all branches of industry. and which na1
SO exceptionally increased the traffic on the Tai-
ways, met with severe check IN Novelllpsr ~ asa
which is now largely affecting the revenues OF
your system While 2 number Of causes seriously
disturbed public confidence. and thus brought on
the financial panic which has so sharply anected
the business interests of the country an important
one 11ntoubtedy was the fear that the result or
recent federal and state legislation. the regulation
of the railways had approached so nearly TO an
effort to control their management ana revenues
that Investments therein Were not assured OF
+hat nrotaction TO which they justly entitled
Eventually il may be assumed. the questions tlIiC
arise will be fairly adjusted but IN the mean tiIe
the raivavs have 70 face the loss or revenue cor
seouent upon the enforced idleness OF large pStIl
of their eGuiDn1ent while TO a proporuonate nu1noe
Of their employees this has necessarily orougnt n
oboIt either an entire loss of employment or a ND
fe~iaI reduction in their hours of labor
RRONXITES C1N'T 4GREE.