The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-25
D., l. & WIS SURPLUS
LESS THAN IN 1912
Gross Earnings Gain, but Ex-
penses Increase Faster
e. Than Income.
PARCEL POST HEAVY DRAIN
President Truesdale Says Out
look for 1914 Is "S0me-
what Uncertain"

IN spite OF the fdct that inc earnings
and income OF the Delaware. Lavka-
wanna and Western Railroad Company
for the year ended December 81. 1919.
increased largely over those OF 1912 sur
plus for the stock was smaller than that
for the year previous. This is due to
increased expenditures. The road at the
end OF the fiscal year Just completed had
net income of s9,699,615 available for
dividends. which was equivalent to 32.1l
per cent. on the sSo.277 900 capital stock,
as compared with 33.21 per cent. earned
on the same stock the previous year.
In his statements to the stockholders
W. n. Truesdale, president of the road.
sounds a rather ominous note when he
says THE present outlook for 1914 sp-
pears to be somewhat uncertain, not TO
say dlscouraging. to the railway interests,
and those more or less dependent on them
for their prosperity OF course X later
in the year the prospects for abundant
crops appear TO be good conditions may
change very much from what the present
outlook promises"
The total revenues OF the railroad COM
pany were 4o,7st14s. as compared with
sS1.56i.510 in 1912, an increase OF s.S7
per cent. Net earnings from operation
were slS.210,306. against sI3,4ls,0s7, a
gain OF 1896 per cent Total net revenue
OF the Lackawanna was $15.722,106. as
compared Win AIteT ueuuCt-
ing S1.9s0,000 for taxes there was added
for additional income $4.32s.094. as COM
pared with additional income for 1912 OF
ss.334.354, making a,total income OF Sls.-
010,2o0, against S17.5+2.0s4 the previous
year. From this total income total charges
OF ss,SI0.5s4 were deducted. leaving a
surplus for the stock OF s9,699.6lS, as
compared with S1O,042.07o After the
payment of the annual dividends OF 10
per cent. and an extra dividend OF 10 per
cent. each amounting to s3,0lt.400, there
remained a surplus for the year Of $3.50
SIS, against s4.013.270 in 1912. The profit
and loss surplus of the company on De-
cember 81. 1912, was s29.5l5, 500, to which
was added the surplus for the year. maxi
ing the total profit and loss surplus $780,
1S6,7lS ON December 81, 1918.
The total assets OF the company are
given as s95.16s.62i OH December 81.
1913. as against ss3,is7.s04 on December
81. 1912.
Mr.. Truesdale criticses the Govern
ments manner OF reimbursng the rail-
roads for carrying the mails. He says
that the increase in earnings from the
transportation OF the mails of s,+,252 was
moderate In view of the fact that the
auadrennial weighing of the malls &C.
CURED during the early months OF the
year and that the increased compensation
became effective July 1. 1913. He says:
carried by this company. as shown by the
Weighing this year. over same as weighed
In 1909, as indicated by the re-
turns from the Post Office Department.
was 23.03 per cent. BY the terms of the
contracts however. the increase in COM
pensation allowed for this increased ton
mage was but 6.19 per cent"
Mr.. Truesdale adds that excessive de-
mands for Increased wages were made
by the several classes of employees who
were strongly organized and threats of
strikes were made. and that the roads in
difference to public demands that the peo-
pie of the country should suffer no loss
through temporary suspension OF traffic,
consented TO arbitration. As result the
wages in two cases were raised. Addi-
tons were voluntarily granted TO other
classes of employees to maintain a Just
balance.
In his general remarks President Trues-
dale says: During the last two months
OF 1913 the business activity of the coun-
try at large slowed down very rapidly
from what 1t had been during the earlier
months of the year, and at pres
ent writing the volume OF business being
done is from a fourth TO a third less all
around than Mt the same time "A year
ago. This was In part due, no
doubt to the shortage of the corn crop
of 1913. but TO a greater extent however,
70 widespread feeling OF doubt and un-
certa inty as TO the effect OF the tariff
and currency legislation pending and un-
der consideration, and finally enacted into
laws The railways Immediately felt
this slowing down process. and they in
turn. under the stress of high operat-
ing expenses and reduced net earnings,
have been forced TO retrench in every
direction"