New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-28
GENERAL. REMARKS.

The mileage OF the lines directly operated
was increased 1908 miles, due chiefly 70 the
construction Of various branch lines 10 obtain
additional traffic. and the changes IN the nHe-
axe owned and that operated under lease or
as agent are due to the absorption OF the
Cambria ard Cearhed Railway.
The total revenues from rail operations *
ceed those OF any previous year In the his
tory OF the Company. being 8.1S per cent.
greater than the revenues in 1912, but 4 down
ward tendency occurred in the last two months
of the year.
while the revenues increased s IS per cent.
he total expenses OF Rail Operations show an
crease Of SOC per cent. compared win INC
eviOus year ~ 40,
III, - Of 1872 we're affected by legislation such
as the Extra Grew Laws and other expensive
moa sures and by wage increases granted as
the result Of arbitration under the Erdlnah
Act The Extra crew Laws alone involved an
expenditure by the Pennsy lvania Railroad SNa-
TEN East OF Pittsburgh and Erie OF Se'Vooo III
round figures. and this will convey some con
CcptiOn Of the extent Of the needless eKpehul
lures that have been placed upon all OF the
railroads in this territory. During 1913 inc
conductors and trainmen on forty lone OF the
n iroads in Eastern territory. comprising ABOUT
100 900 men. submitted a request o the various
carriers for an increase In wages. In winch yolr
Company and others could not acquiesce me
matter was finally submitted TO arbitration,
being the first wage controversy 10 be settled
under the new Federal Law known as inc
Newlands Act. with the result that WORKING
conditions were further restricted, ana an IN
crease i'm wages was granted Approximate ~
for all railroads concerned, about $4,000. Oco
per annum. or per cent. This award was
made November 10th. 1913, effective OCTOBER
LIST 1913. but the increased wages nave noI
yet been paid. as further interpretations or tho
award arc now being made and settlement VIII
follow. The expenses for the Jear 1914 VIII
he increased approximately S73ooC0 as the re
suit Of this award.
1t is evident therefore that the ability "a
regulate wages and working conditions ana
other heavy operating expenses has. as The re-
suit OF Federal and state Legislation. largely
passed from the control of your Management.
has also the power Of your company ana
other railroads 10 charge rea iohable rates TOT
tho public transportation service rendered. ne
gravity Of tho situation - indicated IN the ipi
lowing quotation from the recent award or me
Board or Arbitration in the matter OF con
ductors' and trainmcns wages.
This Board has no authority 10 dctcrI,in i
the PASSENGER and freight rates To he pald IN
the Eastern Territory; neither is II IN posi-
ton 20 determine whether such an increase Is
justified, as matter of fact. by al OF the Clr
cumstsncos. This Board. however. believes thst
II must make its finding rs to what il proper
rate Of paw TO be awarded TO the conductors ana
trsinmen IS a result Of this arbitration, WIN
out anv reference 10 the dilemma in when inc
railroads are evidently placed by the laws
which make n impossible FOR them TO increase
passenger and freight rates without the au-
thority Of the Interstate Commerce ComIlllsssIoi
or OF tho Railroad Commissions or the various
states To take any other view or the question:
would he TO decide that no Increase OF pHy
while the laws remain as they are can ever
be mae. except voluntarily by the railros1s
such "a decision would render arbitiatious hhs
this voluclcss. ana IL would he IN ehect 10 hOlu
that railroad service In the Eastern ler'Is o. ,
must continue TO be rendered at existing fbtea
of pay. even though this we're 10 condemn inc
employees Of the railroad 10 work Tor rates on
ma Witch have beer determined tv the most
careful inquiry 10 be inadequate ~ me pre-
cnt time = ton ~ freight IL moved in the fast
crn Territory more than three mies ior VIC
value OF q two-cert postage stamp. ny ~ ~.
chcapc railroad service 10 the shipper W -,
found on tho face Of the globe. In the race oi
such A fact ~ would he unjust 10 say t nc,
railroad employees must continue 20 ne sdusnel
only with what c1T be paid from freight rslei
a. low as this Tho Interstate commerce Ou,.,
mission ard not this Arbitration bodtu "a NJ
the duty o. determining whether we rs ,'
can earn in addition 70 their other SnaI -,
v,itto,ft an increase Of freight rates. the rate
Of nav that this Board believes 20 De que az ~
present time 20 the conductors anu i',.
which rates are embodied In the A"afu 'o''V"
II is difficult 10 escape tho conclusion ina'
some uar must be found WHEREBY W 81
but divided responsibility o. o., -a;,n,av
regulation OF rates wage. ana otner ,u 30,
matters shall either he conccnldtc1 ullr- ~,
Administrative branch ~ the DostIll'''ee1 -,
the results Of Legislative Acts oIueLs VI uos,s.
missions and awards OF Arnlus,Io" -.
shall be recognized bv Rate Ee5ulatorl - 80
missions 50 that regulation OF Wages -,',,s
other matters inay continue Nlt1 "a ,hoss
Who have invested IN their secu.llle.. ,o- Pal
The Increase in the total expenses Ioa 4,
Operations was FOR the foregoing reasons :,
greater ratio than the increase IN 1919, ion,
that the Nct Revenue from ran ~ 80 -
decreased $50 80. Notwithstanding t.e ~. ~, 90
efficiency and the larger investment ''' no.
road and Equipment p....,,,. a. 2
The Net Railway Operating he,vuIT' dSi,s
whole decreased 80 PEI cent ana h, ,,as
thereto the fncrea 80 In RAILWAY thNes ~ 49,
~, tho Railway Operating Income uev. -
81 SIC. $50 or 3.si per cent, a. compa'en VIZ"
previous year. ,.t..u,. -
Dividend Income increased due pallltlP", "a,
higher return on the Capita 49, .- totd
Southern Pachc Company. that on 20" ..,,s -,
iuss 90 Baltimore and ohio Rallpht .- -
Common and Preferred Stocks Nhl,n 49,. Z.
changed therefor. and 20 whicE reI...l .. -
hereafter made. also IN the lsrse, lnS" 49,,
ceived from YOUR holdings OF .roiio,rn -.
Western RAILWAY Company se,urlne,. ~. a.,
from sinking and Other Reserve ui ,,c
creased ss3s 30. which is explained .2 80 ~
that only six months income was IN D.-,r,.rr
this item IN 1872 under the Interstate ~, e.
Commission classification which oses"e ,,t
tive July J. 1912. while 1915 eoh'H'"s
years income. . .ho,,s q
Hire OF Equipment credit balance nov
decrease ~ sS0e 80 compared with the si,.
wear due so the use 81 incresheh n'l -
! of foreign freight cars and the higher 'e' '''
| rate charged therefor. 49, po.a. d.
peductiOns for Lease o' oTher s--r.,,,.,
] creased 81. go $50. due n lower Nv