New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-04-12
DEL. & HUDSON REPORT
President Loree Says Railroads
Must Advance Rates.

MuSl HuVdIICc ndlPS.
The Delaware & Hudson Company in
1912 earned a gross revenue of So. $50. 1916
from its railroad department ana 3d. -
557 from its coal mining department. or a
total OF $3j.s776eo. The gross income of
the combined properties amounted to
SO. los. Go. of which s9,0S1. 79S was derived
from railroad operations. Deductions
from the railroad gross income aggre-
gated 1869 1856, leaving net income at
81 Al. S63. or decrease of t47s.1l4. as com
pared with 1911. After adding s79,O56 gem
eral income and deductng s. 69s for taxes
the net income carried to the general
profit and loss account was S.JO5,0s9
which is equivalent TO 1896 per cent on
the company's 81. $4,000 capital stock,
compared with 1882 per cent the previous
year.
In his remarks To stockholders Presl-
dent l.. +. Loree said, in part:
The Interstate Commerce Commission
has proposed rates TO be assessed by eN-
press companies on interstate merchdn-
disc express traffic. which would cause
losses estimated at 25.2 per cent OF the
gross revenues therefrom, and when
would correspondence reduce the express
revenues OF the railroads. hearing be-
fore the commission on the proposed
rates will be held during the year 1913,
and data are now being prepared which 1t
is believed will clearly indicate the inJus-
tee of making any general reduction
and that. at most changes should be
made only in such individual rates as
may be necessary to bring them into har-
mony with the general schedule.
by an act of Congress parcel post
was established on January !. 1919, where
by packages not exceeding eleven POUNDS
in weight may be forwarded as United
States mail. A large percentage OF small
packages formerly carried by express VIII
probably be forwarded by mail.
The postoffice appropriation bill Whlch
became a law on March 4, 1915. provides
that. on account Of the increased weight
of mail resulting from the establishment
of the parcel post. the Postmaster Gen
eral is directed to weigh the mails. begin
ming September !. 1918. and TO readjust
compensation from the date of the COM
mencement Of such Weighing. II provides
also for the discontinuance OF the trans
portation of second class matter In freiShl
trains. No provision has been made Tor
compensation 10 the railroads FOR the ad-
ditional mail carried by reason OF the
marcel post between the date of its estaD-
lshpent and tho date OF the Weighing.
while the increased mail pay resulting
from the rewcishnG Of the mails VIII
largely offset the loss i'm express revenues
of tho railroads. il VIII not compensate
them for the increased labor IN handing
tho mails-the railroads being obligated
TO handle. without compensation an man
at transfer points and also between tho
depots and postofiiccs i'm all cites ana
towns where the distance does not exceed
eighty rods"
President Lorcc also refers In inc III
tcntion OF the Interstate Commerce COM
mission to investigate all rates, etc. gov
erning the transportation OF anthracite
lie notes that the investment OF the ran
roads i'm road and equipment incrcaSeu
anproxinatcly 100000 I'm 1908, s;aJ."' .
Oo0 in 1909. $1,000 c' in 1910 aud $4,000"
In 1911. so that on June 20. 1911, the invest
ucnt In the property devoted to the pub
lie use was 2.oi. ii7.6l7 IN excess Of inc
investment on June 90 100
Comparing with 1901 the report addS'
There was available for interest and diNi-
donds approximately Sllo,ro."o less IN
1906. 100000 less in 1900. &2,W."o more
in 1910 and 50 10000 less in 1911. In other
words. the year 1910 was the only year IN
which the railroads received any return
on the new money going into their prop
crtv devoted 10 public use. and IN that
wear they received only 3G per cent on
tbe increase Of 81. 81. i56.S'9 in the cost OF
road and equipment ON Juno 30. 1870 as
comparcd with the cost on Juno 80 49,
while in no year did the rate OF return
ON the total investment equal the az per
cent earned in the year 1907.
."The necessary annual increases OF cap
itaI investments by railroad corporations
must he largely made through new issues
Of long term securities. Such securities
viii hereafter he placed with some Diff
Gculty at such rates Of interest as the
companies can afford 10 pay unless there
can be secured to the carriers iair rate
nj return upon the cost Of the Improves
A.. .l1f. nr,pertieg -