The Washington times., 1914-02-28

the present time to the conductors and train.
men. which rates arc embodied in the Award
following"
1t is difficult to escape the conclusion tina,
sme way must be found whereby the serious
but divided responsibility Of Governmenta
. regulation OF rates, wages. and other rail.
way matters shall either be concentrated un.
, der one administrative branch Of the Gov
ernrnent or the results Of Legislative Acts
orders Of Commissions and awards OF ArbI.
tration Boards shall be recognised by Rate
Regulatory Commissions, 20 that regulatfor
OF wages. rates and other matters may con-
tinue without working a manifest injustice
| 70 the railroads, and those who have invested
In their securities
The increase in the total expenses for Rail
Operations was for the foregoing reasons In
50 that the Net Revenue fom Rail Operations
decreased S55s. 29. Notwithstanding the in
creased efficiency and the larger investmen,
for Railroad and Equipment
whole. decreased 80 per cent and addins
thereto the increase In Railway Taxes Of
Slss.12s. the Railway Operating Income de-
creased Sl.6lo.s5o. or. as1 per cent. as com.
pared with the previous year.
Dividend income increased due principally
TO higher return on the Capital Stock OF
the Southern Pacific Cunpany than on your
hofdinss Of baltimore and Ohio Railroad Com
were exchanged therefor and TO which refer
ence Is hereafter made: also to the larger In
come received from your holdings Of Norfolk
and Western Railway Company securities
Funds increased SSSs. 80. which is explained
by the fact that only six months' income
was included in this item In 1872 under the
Interstate Commerce Commission classinca-
tion which became effective July l. 1872
while 1918 contains . full years income
Hire OF Equipment tcredit balance) shows a
deofease OF SSf2.eS compared with the pre-
vious year. due to the use Of an increased
hSar ~ (pRatav
per di"m rate charged therefor
Deductions FOR Lease OF Other Roads de-
creased N.32S. 4s6. due to lower Net Earnings
Of re'ds operated on that basis. including the
Cambria and C1earfeld Railway to March 81
1913. when II was acquired by your Company
The Net Income for 1913 was 81 $50 ss3, 4
decrease Of S233. ~. compared with 1917 from
which representations were made to the Sink
Ing and other Reserve Funds: Additions and
BetterInents were provided for Lines owned
leased and operated: cash dividends cnount-
ing TO six per cent. were paid: s.. 500, 600 was
transferred to the Reserve for future Addi-
tions and Betternents and $50. 6Q3 credited
10 PROFIT and LOSS
In view Of the steady increase In expenses
taxes. and other necessary outlaws which has
caused continued decrease In the return on
Its investment in the Railroad and Equlpment
provided for public service 10 that the re-
turn is Inadequate. your Company and other
Eastern Railroads. In MAY, 1913 pe;itinned
the Interstate Commerce Commission 10
grant permission to advance freight rates on
the basis of ave per cent. with reasonable
minima and with the notifications neces-
sary to preserve existing diNerential rela-
tions between communities. thereby supple
menting the petition made In 1910 for an In
crease In freight rates which the Commission
decided not to grant. but upon the under
standing that ~ actual results should dem
orstr,te that their forecast Of the future
proved incorrect. there might be ground for
asking n further consideration Of the sub
jcct" The Commission has instituted pro
ceHdnss on its own Initiative TO determine
whether the present rates os transportation
yield adequate revenues to the common car
riers affected. and II not. what general
COURSE the carriers may pursue to meet the
situation. In order to develop the whole sit
uation your Company has In cooperation
with other carriers. submitted extensive data
relating to the Investment In railroad and
equipment earnings. cost Of operation In
come etc. for the last sixteen years In ad-
dition to which the officials OF your Com
pany are prepared to submit further evidence
In support Of the general exhibits which will
emphasize the necessity for your Company TO
obtain higher rates. The Commission has
also ordered the carriers to furnish extensive
inform alton relating to various features Of
operation and traffic and the relation Of the
carriers and Its employees and officials with