Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-11-24
ROAD ASKS LEAVE.
TO RAISE RATES
Continued from First Page,

latter year, 227 million dollars, or an
increase in expenses Of about 40 mil
lion dollars, resulting IN a decrease
in net revenues, after payment OF
taxes, of over nine million dollars and
in net corporate revenue of more than
Is million dollars.
GAS stated in other words, the ratio
of operating expenses and taxes to
earnings, during the same period, In
creased from 1858 per cent. to 1913 per
cent.
THESE same roads, during the year
ending June 30, 1908 (Which will be
remembered as a panic year,, earned
212 million dollars, and during the
year ending June 30, 1913, 275 million,
or an increase of 60 million; but, dur
ing the year ending June 30, 1908, the
operating expenses and taxes were 165
million, and the year ending June 80,
1913, 227 million-an increase of about
81 million.
corporate Income Decreased"
Now, despite the fact that during
that same period more than 175 mil
lion dollars were put into additions
and betterments, the net after deduct
ing operating expenses and taxes,
showed an increase of only 100000,
while the net corporate income ac-
tually decreased about eight million
dollars.
"As we have shown, this mileage
comprises 51h per cent. of the entire
mileage in the territory, and If We
add the mileage of the as short rail-
roads, we will have 591 per cent. of
the entire mileage of the territory, all
of which Is in a deplorable financial
condition.
Still Less Encouraging.
G..,..-o- g. t3~ek t,.xx, .. =, he
of the present fiscal year are still less
encouraging; for instance, the net
revenue, after deducting operating
expenses and taxes of the lines in
group one for the two months men
toned, decreased about $4,500,000 as
compared with the same two months
last year, while the decrease of the
lines in group three was about $2,OOO,-
900 as compared with the same months
last year.
THE evidence will show that the
lines in Central Freight Association
territory are confronted with the ex-
penditure in the near future of mil
lions of dollars In the separation Of
grades in various cities. on which they
will receive no adequate return, and
many of the lines have not the credit
to raise the money. This circum-
stance, in view of the present condi-
lions of the roads, presents a serious
situation which calls for prompt re-
lief"
Statistics to show that operating
expenses have increased faster than
gross earnings and that net earnings
have returned nothing on new capital
invested in the last three years, were
presented also by George M. Schriver,
vice-president of the Baltimore and
Ohio Railroad.
Three Roads own $3,253, 431 ,2O4.
Mr.. Shriver presented also COM
bined financial operating statement of
the New York Central, the Pennsyl-
vania and the Baltimore and Ohio
systems for the last eleven years.
The statement showed that the
three systems have about so per cent.
of the mileage of the Eastern terri
tory and that their property invest
ment aggregates $3,253, 431 ,204, sum
greater than 1t was at the close of
1903 by $1,107, 1886, SIG.
The gross earnings rose during the
period from $685. ,S21 to $797, 1862, 913,
the earnings for the year 1913, being
the greatest in the history of the
roads.
The net operating income, however,
was $8,3S0,710 less in 1918 than In 1910.
While the property investment in
yestment increased SLIGO per cent. and
and gross earnings increased SO. 35 per
cent, the net operating income in
creased only 29.S0 per cent
In other words" said Mr.. Shriver,
1.-THE increase of net operating income
represented a return on the new in
vestment of 3.59 per cent. only"