The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-03-02
Fels & Co., Philadelphia.

pany, it is of almost equal Importance
to the owners of railroads and to per-
sons dependent upon their successful
operation and service to know thatI
their interests will be protected under
law and that it is the expressed inten-
tion of the commission to aid in the
solution of the problem of constantly
increasing expenses and other burdens
placed upon the railroads.
Yet, President Rea points out, there
Is great deal of constructive work to
be accomplished before governmental
regulation is placed on satisfactory
basis. In this connection he urges
amendments to Federal laws so that|
the commission shall be given power to|
strengthen the railroads in order to en-
courage the investment of private capi-|
tai for the expansion of their faciltiesI
and services, ana the preservation of
their credit, by means of reasonable|
rates which will accord with the higher|
costs and burdens placed on them in|
complying with statutory requirements
and governmental awards and regula-
tions.
Operating Revenue
The operating revenue of all linesI
east and west OF Pittsburgh for theI
year 1914 was 1854, 2,996.34; OPP
Grating expenses $2SS, S,S03,S07. andI
operating income, $65, 6O9,1SS.5O, al
decrease in operating revenue, com
pared with 1913, of S3S,022,9477I,|
and decrease in operating income of
$5,373,S52.5S. There were 313,-
9S3, Ala tons of freight moved on theI
entire system, being decrease oil
5S,039,716 tons, and 1S3, 3,031, ,295 pas
sengers carried. decrease of 4,463,-
$50.
The number of tons of freight moved
on the five general divisions east of
Pittsburgh and Erie in 1914 was 1875 4
296,035, decrease of 1892, ,743, orI
1888 per cent; the number of passen-
gers was SO,S73,2S1, a decrease ofl
1,903,951, Oh 2.30 per cent.
The net income was applied as fol-
lows $1,7S5,242 to sinking and re-
serve funds, $685. 1S6 to dividends
and $2,300,33j to investment in phys-I
ical property, leaving surplus for the|
year of $123,000.
Earnings of the western lines were
much more unfavorable. The Pennsyl1
vania company reported gross earnings
OF $54,69S,326, decrease of $11,
535, ,26S, and net income of $4,728,
972. decrease of s5,065,029 from
the previous year. The Pittsburgh
Cincinnati, Chicago and st. Louis
showed gross earnings of $99, ,139,399
decrease of S5,437 ,443, and net in
come of $2,314,096, decrease OF
$S27,403. The Vandalia reported
gross earnings of $11, ,006,672, loss
of $519,610, and net income of $2S2,
$50, a decrease of $500 ,259.
The lines west of Pittsburgh expend
ed $11,030,991 during the year fol
construction, equipment and real es
tate Arrangements are under way, the
report states, fot the financing and
commencement of work on the new I'm
ion passenger station at Chicago. Tht
new passenger terminal viii absorb the
present freight station facilities of ths
Pittsburgh, Fort Wayne and Chicago
railway, and modern freight station
of much greater capacity will be pro
vided
Attention is called in the report t.
the efforts of the railroads to brin;
about the repeal of the so-called full
crew laws and the stock and bondhold
ers and employees are requested to sup|
port the movement.
Electric Trains by June
1t is expected to operate the mai
line suburban passenger trains by eled
tricity about June | and it is hope
that financial conditions this year wi
permit the extension of eectrifcatioi
TO North Philadelphia and the Chestnu
Hill branch. The aggregate expend
ture for construction and eQuipmen II
during the year was S16,961 ,009. Th
total operating expenses decreased
S.67 per cent, chiefly through enforced
economies required by the loss of revd
nue. and traffic. These were effecte
by reduction in the use of material
and supplies, in the working forces O
all departments, and in train and ca
mileage, and by deferring other eY
penses.
Beyond the S49,000,0 900 of consol
dated mortgage bonds recently sold th
company possesses authority to incrcas
the indebtedness by $31, 100000. Th
will not he sufficient TO meet the ba
ance of the refunding anI other rd
quirements for 1913 and stockholdei
at the Forthcoming annual meeting wi
be requested to.consent to further il
crease in Indebtedness of $40,000,00t
so that the company may have autho
ity to increase its Indebtedness to tb
extent of $71,000.000. This will b
made through the issue of bonds 81
cured by the new general mortgage,
otherwise, or by the issue of other oil
legations, but not in excess of $71
100000.