New-York tribune., 1909-09-30
LEHIGH VALLEY REPORT.

The annual report OF the Lehigh Valley Railroad
Company for the twelve months ended June 90
last was made public yesterday In the period COW
cred by the report the gross operating revenue
amounted 10 sS3.lS7sS2 decrease Of s2S2S22 from
the preceding year The decrease IN expenses.
though large. not enough to offset this: the net
operating revenue was S2.5s2 os5. decrease OF
s3so2. Taxes amounted 20 EO7s.s7s. 326 per
cent OF the company's revenues increase OF
per cent After deducting taxes from net operating
: revenue there remained operating income of
tu.ss2,ZS Other observation-disclosures funded
debt. rentals. etc-left net income Of lGO,
against S59s3,sl7 in the year before.
Al exceptionally mild winter and the unfavorable
commercial conditions caused falling of OF sl.343.-
6s in the revenue from coal tonnage upon which
the Lehgh Valley must depend for nearly half OF
its total operating revenue. The coal and coke
transported in the fiscal year amounted 20 13273l3s
tons decrease from the year before OF l.249. .l2s
tons, or Sc per cent The revenue from merchan-
disc freight and from passenger travel showed a
similar falling of. the former decreasing 5l3 per
cent and the latter el5 per cent
For maintenance OF equipment in the year the
sum Of S5.S32,550 spent S2l,444 less than was
spent in the year ended June 80. 1905. Retricted
business requiring a smaller amount Of equip
ment in actual service, responsible for the de-
creased expenditures The physical condition OF
the equipment fully maintained Despite the
fact that much OF the company's equipment was
necessarily idle, the ruling OF the Interstate Com
merce Commission compelled the setting aside OF
large fixed monthly charges TO maintenance ac-
count The commissions ruling takes account
OF the great falling on IN traffic occasoned by de-
pressed commercial conditions. and the company
found that great confusion resulted from the en-
forcement OF this rigid system Of bookkeeping. In
this connection L 3. Thomas, president OF the
company, says in the report:
The compliance by your company for another
year with the order issued by the Interstate Com
neTce Commission prescribing certain monthly
Charges 10 maintenance account for depreciation
q equipment and which has resulted In a balance
q N,JY5I at the close Of the year, notWithstand-
ing repiacenents charged thereto, has further
Nnced your management OF the utter impractical
biliy o. such system Basng. IL does. charges
upon theory, and not upon fact charges which
are as great when equipment is idle as when it
Is in constant service il produced confusion in
arriving the actual cost Of operation il Is
hoped, IN this connection. that the commission will
al an early date modify its order that charges
VIII be based upon actual conditions. and not upon
an arbitrary or theoretical rate OF depreciation
which may may not exist
The expectation in some quarters that the law
compelling passenger rate Of two cents a mile
would swell traffic that the revenue from this
eiass Of business would be increased has not been
justified by the experience Of the Lehgh Valley.
The report says:
Your company has been unable as yet 10 obtain
any relief from the law enacted by the State Of
f*tinsylvans reducing the rates Of fare to a maxi
mum Of two cents a mile. although every effort to
mat end is being made, which II successful will
increase the revenue on passenger business In that
state"
General consolidated mortgage bonds 10 the
amount Of 100000 We're sold during the year 70
provide cash for improvements 20 the property and
% retire several mortgages on real estate Pay
niehts 81 22752000 made for the retirement Of
eL'S"0 collateral trust bonds and s752.OoO equip
-isHt trust obligations. The outstanding capital
Indebtedness of the company was thus increased IN
1s hscal year covered by the report by only f24s-
W. The amount Of capital stock remains un-
changed.