The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-26
Big DROP IN INCOME
OF PENNSYLVANIA co.
Concern Managing Lines West
Of Pittsburg Earns
S3.OOO,OOO Less.
DUE IN PART TO FLOODS
Net Receipts 1899 Per Cent. on
$50. 100000 stock, Instead
of 1888 in 1912.

The report OF the Pennsylvania Com
pany. the corporation which manages the
lines leased and controlled by the Penn
sylvania Railroad Company west Of Pitts
burg, for the year ended December 81,
1913. shows that the net income of the
company for that period was s9,793,10i,
as compared with si2.7o2.s3s for the year
ended December 81. 1912. The net in
come for the last year was equal to
1899 per cent. earned ON the sso,OOo,o 900
capital stock. against 1888 per cent.
earned on the same stock In 1872 Only
s96.2sS was transferred to profit and loss,
as compared with s732367 transferred to
profit and loss in 1912.
Total earnings from rail operations for
tho year were s65,sS5.377. an increase
OF $2.SSi953 over the year previous.
Total rail operation expenses were $780,
<S5.7i3. however. an increase OF s5.s2s.-
3O2. This included s1.51S.327 expended
in replacing and repairing tracks. bridges
and other property destroyed by the floods
in March. 1913.
The railway operating income of sl2-
il7,576 showed loss of S3.3s9.212. to
which was added total other income of
S131SI,4aO. which represented loss of
s794,332. making total gross income of
S25,32s,9e6. "a decrease of $4.ls3.544. De-
auctions from gross income amounted to
s15.535,S95. an increase of $1,274.OO1.
This left a net income OF se.'o3,lOl. a
loss Of $2.909.537 from the year OF 1919.
Rea on increase In Expe
After the payment OF dividends and
other items the balance transferred to
profit and loss amounted to s?6,29S. as
compared with s732.367 transferred to
profit and loss the year previous. The
amount to credit of profit and loss on
December 81. 1912, was Ss.OO1,ioO. to
which was added the surplus for the past
year. making total profit and loss OF
ss.103.7ts. After the payment of sundry
debts there remained an amount to credit
Of profit and loss on December 81. 1913,
Of s7.7s4.7l3. against ss,007,7iS credited
70 profit and loss on December 81, 1912.
In speaking of the considerable increase
in the cost of operating during the year
and effect of the March. 1913. floods upon
the roads of the Pennsylvania Company,
President Samuel Rea says:
THE total expenditures for operating
and maintaining the properties and equip
ment were $50,465,7l3.9S. an increase Of
3S,s2c3O2.97, which was an abnormal in
crease and reflects not only the extraordi-
nary expenses directly incurred in restor
ing the various portions of the property
suddenly damaged by floods in March at
the time a high volume of traffic was
being handled. but the cost of subse-
quently handling the traffic under less
efficient conditions for months and tine
effect of complying with awards OF in
creased compensation to employees. with
full crew. sanitary and sem-monthly pay
laws and the orders Of municipal and
State officers or commissions
Repair Charges Higher.
'Thc charges for repairs and deprecia-
tion of locomotives and for repairs, re-
newals and depreciation of freight cars
were considerably higher, and larger ex-
penses were incurred in the repair and
renewal OF shop machinery and tools
'"rhe railway tax accruals increased
SSS5.lS9.60. or over "a per cent"
President Rea adds that the amount
expended in reconstruction during the
year and charged TO expenses, largely due
to floods was sl.5ls,32762. the heaviest
expenditures being upon the Cleveland,
Akron and Cincinnati Railway. the To-
ledo. Columbus and Ohio River Railroad
and the Pttsburg. Fort Wayne and Chi
Cago Railway.