Panama City pilot., 1908-10-29

is reflected in the annual reports of
railroad companies which have re-
Gently been issued for the fiscal yee.r
ended June 80, 1908. 1t was year of
remarkable hardship for the roads,
practically all of which have sus-
tanned heavy decreases in gross earn
ings from loss of traffic and at the
same time they have been in many !
cases subjected to the effects OF |
harassing legislation, which likewise
helped to cut down profits. On some |
of the rords the effect of the panic |
was to reduce the tonnage of high |
class freight so that the business re-
naming was that of transporting raw
materials at correspondingly low
rates and the tonnage of these was
also in smaller volume. Few of the
reports displayed increases, except
in cost of operating and supplies.
Only here and there has any gain in
gross earnings been shown and in
nearly all cases the increased cost of
doing business wiped out the slight
advance in gross. Considered as
whole railroad conditions were worse
than they had been for Is years.
To make net results as good as pos
sible the railroads resOrted to many
economies. All construction work
not pressingly needed was stopped,
this cessation included some improve
ments of considerable Importance.
Some new lines which were planned,
and even surveyed to the point of
actual preparation for building, were
given up for the time being and are
likely to be resumed only when con-
ditiOns are more favorable for rail
road business. The falling off in
equipment orders was tremendous
and only recently-in fact some time
after the close of the fiscal year-has
there been much evidence of a desire
by any of the companies to add to
their rolling stock. For time there
were practically no orders given for
either ears or engines and even re-
pair work was postponed until i'm
peratively needed in some instances,
although most Of the lines made little
if any change in their provisions of
maintenance of equipment. EcOnOmJ
/ 70
nance OF way and buildings, only the
most essential work being done. In
| some companies there was rcduc-
| ton of the salaries of officers and
clerks who received annuaI sa!arIes
above certain figure. Few roads
were able to effect any economies
among their operating, mechanical
or maintenance forces so far as rares
of pay are concerned, but the com
panies were obliged to lay off many
men, yet this did not have the effect
of showing an increase in net earn
ings as compared with the previous
year. The report of one railroad
company, however, does note re-
duction in operating cost as a result
of increased efficiency Of labor and
equipment.
Had it not been for the greater cost
of conducting business as compared
with three or four years ago the rail
roads would have made better shcT-
ing. The falling OH in revenues was
about to the level of 1904 and 1905, but
wages have advanced since then, the
cost of everything whic. a railroad
has to buy has also greatly advanced
and the companies are more or less
afflicted by the operation of rate laws
which reduced their revenues out of
proportion to their expenses. This
situation has elicted many remarks
from railroad officials to the e fleet
that an increase of freight rates is
necessary in order to establish an
equitable ratio between income and
Outgo.
But there is a clear note of optim-
ISM In most of the reports, based
upon the hope that something will be
done to relieve the strain upon the
companies. Generally speaking, Off
cials seem inclined to think that their
contentious will be recognized as just
and that the outcry from various
quarters against railroads VIII abate,
to be followed by proper recogni-
tion of their rights and the necessity
as the officers contend-for the es-
tablishment of a more liberal feeling
among the public and its legislative
representatives toward the tranSnOr-