The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-03-30
Reports of New York Central
and Lake Shore Reveal Large
Increased Profits.
INCOME ON MONEY INVESTED
GROWS FASTER THAN WAGES
Railway Management Constant
ly Trying to Hold Rates Up
and Wages Down.

New York Central and the Lake Shore
railroad men for increased pay In ap-
proXi,nately the proportion OF the in
creased cost OF living and the claims
OF the railroads that such demands would
drive the roads into bankruptcy. the an
nual reports of the New York Central
and OF the Lake Shore tell their own
story,
Besides the usual u per cent a year
dividend the Lake Shore recently de-
cared an extra dividend OF per cent.
d totai In diFldens OF is per cent "a year
In addition TO this high earning power
since the wages OF It's employees were
lilcreaseu, or rates on freight and pas
senGers were lowered the Lake Shore has
earned many millions of dollars that go
back into Improvements and that repre-
sent no new capital. The management en-
poets 10 earn dividends al the usual rate
OF the road on this money taken from the
earnings, which really amounts TO com
pound interest on the original capital In
vested in the road.
Lake Shore Earnings.
The Lake Shore and Michigan Southern
Railway company reports for the fiscal
year ending December 81. 1909. show Il
large Increase In business and net ca rn-
ings and In the dividend rate. The oper-
ating revenues for the twelve months
were S4J, 10. .99I, an increase of SC .0i4-
055 AS compared with 1908. Revenue de-
rived from transportation Of freight
amounted to S29. 135. .216. an Increase OF
si,697,172. due TO improved business con-
ditions In the year and resulting in
crease in tonnage handled.
Passenger revenue amounted TO s29.-
'3o.2I6. an Increase OF S1.OSO,50l, Que To
a substantial Improvement in passenger
traffic and a greater number of passen-
gers carried. Revenues from other than
transportation were S353. lS5. an increase
OF Si4. .702.
The operating expenses for the year
amounted to S2S 023, 66l an Increase OF
S2.Sl1,l56 Maintenance OF way and
structures increased $672.019. The re-
sumption in the year OF important Inn
provement work. consisting of four track
ing the main line, Strengthening and re-
building bridges additional 6allasting.
etc. made necessary heavy charges TO
maintenance to provide for changes 10
existing roadway and structures.
Maintenance OF equipment increased
$l.S5S.72S. due TO the large amount and
extensive use OF equipment I'm service
during the year. Traffic expenses in
creased sl2S.O5G. due principally to a
larger cost 10 the company In maintain
ing fast freight lines and outside agencies.
Transportation expenses Increased S6S4,-
S59, due TO heavier volume OF trafiic
handled. Affecting largely station and
train service. General expenses increased
SIS, ,i22. Outside the operations show
loss for the year of SIS.90T.
Taxes accrued increased S202jS. Other
income for the year amounted to SbiSb,-
SSI, an increase OF 81 ,3S9. .SO6. due TO addi-
on stocks owned and rental in joint IA
cilities.
Deductions from gross corporate in
come amounted to s1O.382. .o49. an increase
of s542.lSS Rentals of leased lines In
creased S75S. 900. From the net cor
poraLe income OF the company ior the
year, amounting 10 S1l.654.36l, two divi-
dcnds. acgrcgatlng Il per cent, amount
ing TO S5,935.9S0. were paid. leaving a
surplus for the year OF S5.71S.3Sl. Addi-
tons and betterments 20 the property In
amount of which was charged direct TO
capital account.
BY the elimination OF this expense from
charges to ''income" in 1909 that account
shows decrease In additions and bet
ternents 10 tine extent OF 81. .433.56I, the
amount charged TO such account In the
previous year There was no change IN
the year OF the companys holdings OF
Reading stock.
New York Central Earnings.
The New York Central makes an excel
lent exhibit of earnings for the fiscal
year ended December 81. 1909. in its an
nual report Gross earnings amounted TO
s93iT1 $50 an increase of $9.24i sos over
the preceding year, and net earnings TO
$2S.51S 033. an increase of S5.939.as4.
Net revenue from outside operations
was S205. .967. an increase OF S69 si'. and
net revenue from all operations was SIS
7Sg O0g an increase OF S6.009,SSi. After
taxes there was a total operating Income
Of S2i .349, ,49T. 10 which was added $ll,-
~ S0S representing lU'DuS lIOil i'hlss
dividends and interest on securities
owned and miscellaneous income. making
gross corporate income SDo.Ii2, COS,
against s3l .133.O79 I'm 1908,
After the deduction Of rentals OF leased
lines hire Of equipment, Interest charges
and miscellaneous items there was bal
ance of ST.. 1875, ,t20. and after dividends q
surplus OF S4.I63S20 an increase OF S3.-
6I9 5i3 over the year before.
The balance 10 profit and loss account &c uni
or December d. 1909. was Sl5.fO9,l 1877.
compared with s1O,9i6.SIO on the same
date in 1905.
amounted 10 AI.lTl,95i tons. an Increase
Of O93 792 tons over 1908, the total Tor
1909 being 93I 900 tons above the average
for the four preceding years.
The revenue from passenger trdinc was
$29 .OOl .9lI. a gain of s.. 49,. 10. Expenses
of rail operations were $6i5sS.S26, an IN
crease of SO. 30A.622,
An Increase of $3.50. .22l in maintcnance
OF ccutpment was shown. due largely 10
The Increased cost of repairs. E&traor-
dinarv expenditures in the year were sl6--
COG l2e applied chiefly for additions 10
porperty and work on tho terminal lh
New york city. From this amount now
ever. there was deducted $IOO0,oOO Tor
amount refunded from proceeds oI st
Curitlcs Of lessor companies