Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-02-28

tive branch of the Government or the
results of Legislative Acts, orders of
commissions, and awards of Arbitra-
IioH Boafds shall be recognized by
Kate Regulatory Commissions, so that
regulation of wages. rates and other
matters may continue without working
manifest injustice to the railroads,
securities
The increase in the total expenses
Tor Rail Operations was for the fore
SONG reasons in greater ratio than the
increase in revenue, so that the Net
Revenue from Rail Operations de-
creased S556,229. Notwithstanding the
increased efficiency and the larger in
NeStment Tor Railroad and Equipment.
Inc Net railway Operating Revenue,
as whole, decreased $50 per cent, and
adding thereto the increase In Railway
Ia%es OF S19S,125. the Railway Operat-
lS Income decreased $1,510,650, or 3.S1
per cent. as compared with the pervious
year.
Dividend Income increased due prin-
clpally TO higher return on the Cap
ltal stock of the Southern Pacific Com
pany, than on your holdings of Balti-
more and Ohio Railroad Company Com
mon and Preferred Stocks, which were
exchanged therefor, and to which refer
ehces is hereafter made; also to the
larger income received from your hold
lngs OF Norfolk and Western Railway
company securities. Income from Sink
ing and Other Reserve Funds increased
S536'269; which is explained by the fact
that only six months income was in
cluded in this item in 1912. under the
interstate Commerce Commission clas-
slhcation which became effective July
|, lslZ, while 1913 contains full years
income.
Hire of Equipment (credit .balance)
shows decrease of $S02,6S compared
win the previous year, due to the use
OF an Increased number of foreign
raeisnt Ii ~ nb cars cars and the higher per diem
deductions for Lease of Other Roads
decreased S1,3264S6 due to lower Net
Earnings or roads operated on that
field Railway. to March 81. 1914. when
IL was acquired by your Company
me Net Income for 1913 was SAL
Zo,SS3, a decrease of s233.131 compared
wa.n ynra I9ad' ,ado from which appropriations
Reserve Funds; Additions and Better
mentS Were provided for Lines owned,
leased ana operated; cash dividends
amounting to six per cent. were paid:
s2,500,000 was transferred to the Re,
serve for future Additions and Better
ments and s540,6O3 credited TO Profit
and Loss.
In view of the steady increase in ex-
penses, taxes, and other necessary out
lays which has caused a continued de-
crease IN tne return on its investment
In the Railroad and Equipment pro-
vided for public service so that the re-
turn is inadequate, your Company and
other Eastern Railroads, in Nav. 1919.
petittoned the Interstate Comm erce
commission to grant permission to ad-
vance freight rates on the basis of five
per, cent with reasonable minima and
with the notifications necessary to
preserve existing differential relations
between communities, thereby supple
menting the petition made in 1916 for
an increase in freight rates which the
Commission decided not to grant hut
upon the understanding that 'if actual
results should demonstrate that their
forecast of the future proved Incorrect.
there might be ground for asking a
further consideration of the sub iect. -
The Commission has instituted pro-
termine whether the present rates of
transportation yield adequate revenues
to the common carriers affected and IL
not, what general course the carriers
order to develop the whole Situation
your Company has in co-operation
with other carriers, submitted extern
sive data relating to the investment in
railroad and equipment, earnings, cost
of operation, income. etc, for the last
sixteen years, in addition to which the
officials of your Company are prepared
to to tS submit ,n further evidence in support
phasize the necessity for your Com
pany to obtain higher rates. The Com
mission has also ordered the carriers to
furnish extensive information relating
to various features of operation and
traffic and the relation of the carriers
and its employees and officials with re-
spect to contracts for purchase of ma
terial and other arrangements. and
prompt compliance is being made to
this request. While there is no objec-
tion. to furnishing the additional infor-
nation desired. beyond the great delay
and expense involved, the serious as
pect of the situation at the present
time is. that no immediate decision
may be expected IL all the features in
are TO be considered and determined
before action is taken upon the impor-
tant question at issue, and meanwhile
railroad revenues are rapidly declining
Information furnished in response
thereto can be made a matter OF subse-