New-York tribune., 1910-09-22
BIG GAIN FOR READING CO..
Report Shows Surplus for Fiscal
Year Was S1O.776.O69.

The report for the fiscal year ended June 30,
I91a of the Reading Company. the Philadel-
phia & Reading Railway Company and the
Philadelphia Coal and Iron Company was
issued yesterday. It SHOWS a total surplus
earned by the three companies Of s10.776.O6s.
as against S9.04l,S15 IN the preceding fiscal
year. The gross receipts OF the railway
company were SIS, ,42s.oSs. a new high rec
ord figure. and s.. SD larger than for
the fiscal year ended on June 80 1903. The
report. in commenting upon this gain, says;
The gross receipts for the fiscal year
ended June 30. 1907, in which the previous
high record Of gross receipts was made.
We're so large and the increase over the
previous years so great that 1t was then
believed that the maximum of the current
decade had been reached
Operating expenses of the railway COM
pany for the fiscal year were SIS,
against S23. S25.579 for the preceding year,
the gain following the large increase Of
tonnage which produced the increase Of
gross receipts. Net earnings were Sls,S64,-
466 comparing with Sl6 441,5S3 in 1903, and
after deduction OF g 2070,660 for additions
and betterments, an increase Of S264,959
and sl0I61 s29 for fixed charges and taxes
an increase Of sS51I5, the surplus for the
year was Sc. So S75. against 81 559, ,546 for the
preceding year. The gross receipts Of the
coal and iron company, $780, 1856, showed
a decrease Of sl.57i,7 ,75S, and the expenses.
S0, ,794. .77S were s., 81, go less The net earn
ings were s., +23.I5s a decrease Of S323,6es.
The deficit for the year after deduction OF
81 .2Is.ol5 for new work at collieries, $143,-
e5S for interest on debt TO the Reading
Company and s445. So appropriated for the
depletion of lands fund was s71.50i. against
ecc o-s eo- -E,,
CT a net decrease of SI3S475. The income
OF the Reading Company was s, ,122, 2SS. Ex-
penses were s1os. .44S, an increase Of s74,47o.
After deduction of fixed charges and taxes
amounting TO s4,79S.596. an increase Of SILL
81 which was primarily due TO the In
creased amount Of national. state and mu-
nicipaI taxes paid. the surplus was S.2l5,-
le5 or 100000 less than for the fiscal year
1909 The total surplus Of the three COM
panies on June 80 was So, S5S362, an in
crease Of s4.061-642.
The railway company's revenue from coal
traffic increased s., OBS, ,9s1. or 5.S per cent;
from merchandise traffic. s2,g76,9S4. or 2L9S
per cent, and from passenger traffic $Sn'-
o55. or 14le per cent The number Of pas
sengers increased 6.455l45 or 25-s5 per
cent After noting the work done during
the year in betterments and additions. the
report says:
by command Of the Interstate Com
merce Commission We are required to cap
iralize all betterments and additions which
have been paid for out Of income since
June so, 1907. The line drawn between re-
newals and repairs chargeable to expense
account and improvements is forcibly illus
trated by the ruling on replacement of
rails in tracks If the old rail weighed
one-third CT the cost of the new rail must
be capitalized.
The item on the assets side Of the bal
ance sheet. amounting TO s4.Sl4042 76. is tbs
result Of the commissions order. With no
counter entry OF the liability side on the
balance sheet. this sum would go to in
crease profit and loss Some of the rail-
road companies accept this result 1t
swells their surplus, and has the appear
ance Of wealth But it seems to your
management both misleading and danger
Gus. Increasing profit and loss in this
way VIII again tempt as II has done III
the past. the declaration Of large stock
dividends. thereby swelling capital on
which earnings are to be made. To pre-
vent misleading investors and stockholders,
we have decided not to include this IN
suroft and loss but TO make the counter
entry on the balance sheet appropriated
surplus "
The increase in the wages Of employees
OF the railway company, which was not m
fun effect until July. viii increase the op-
Grating expenses Of the company about
sI32O06 a month, the report estimates
There was paid in pensions during the
fiscal year the sum Of s74,ZS, against s65'-
Gq5 in the preceding year
The coal and iron company mined IN the
course Of the fiscal year sS42,595 tons or
coal. q decrease Of ,365 tons; bought 30
7s6 tons and sold 9,564.2l6 tons. The cost
CT coal mined and purchased was ~ cents
a ton higher than for the previous year
and the price realized was cents a ton
higher Included in the income or the
Reading Company IS the profit Of SLl55,l4 49,
which accrued from the sale Of stock OF
the Iehigh Valley Railroad Company,
amounting to s., go par value.