New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-12
TAX BURDEN HURTS
ROADS, SAYS LOREE
Must Compete for Capital
with State and Mu-
inequalities.
FULL CREW LAW
ALSO A HARDSHIP
Head of Delaware & Hudson
Declares 1t Has Already Cost
Eleven Lines 81, 1884.

L. f. Loree, president OF the Della
ware e. Hudson, in the company's re-
port for 1914 directs attention to what
he terms the increasing difficulties
under which the most solvent railways
must compete for the capital necessary
for their continued development TO
keen pace with the forward strides of
general industry.
$50 far as this competition is with
state and municipalities" says Mr..
Lorec. "it has recently become more
intense by reason Of the advancing rates
offered and the freedom of such invest
mcnts from the federal income tax
and the induisitorial features attend
ing rs enforcement, while. so far as II
is with manufacturing or industrial
corporations, the same effect has
sprung from the longer establishment
and enhanced stability Of the issuing
corporations.
THE public offerings of state and
municipal bonds, exclusive Of those
taken for the sinking fund of New
York CITY, increased from $143,59O, S6S
aggregate annual issue of such bonds
paying 4 per cent or higher increased
during the same period from less than
S6O,OOO,000 to substantially $780,
100000.
"Not only do these issues compete
with those Of railways for the share
Of the limited investment fund re-
quired by the latter, but the augmented
governmental activities that they sug-
gest tend to increase the general bur
dens of taxation, of which so dispropor-
tlonately large a share is invariably
imposed upon the railways.
at is not surprising. therefore, that
from 1902 TO 1914 the annual taxes
paid by American railways increased
from S54,465, 437 to S157,37l. 100. Many,
however, may not have realized that
,r 1914 the various taxing authorities
demanded and collected S3S.26 out Of
every 500 which the railways had left
.out Of their operating gross receipts
after the payment of wages, other op-
Grating expenses and interest on in
debtedncss, a. against S1592 out OF
every 500 in 1902. or that in the lat
ter year the railways paid $3.50 IN
taxes for every dollar which thcy paid
twelve years earlier.
Especially in view Of the drain upon
the worlds resources that is attending
the great European war, and which Is
likely to continue long after the war
has closed, these facts ought to receive
earnest thought. They indicate a
great necessity and great opportunity
for Unselfsh, unpreiudiccd and con
structive StatesmanshID."
The railroad company income &C
count showed operating revenue for
1914 amounting to S22,59j, OPS, a de-
crease Of S1,55S.466. Owing to a slight
decrease in operating expenses. the
loss in net was reduced to S1,396,611,
the total for last year being $3.50, $40.
Net from the coal mining department
Of $953,9 brought the total up to
S8,510,565, a decrease Of Si,729,3l5.
Net income available for dividends last
year was $4.607 500, equal to 1884 per
cent on the company SAP, SOB, 900
capital stock, compared with 1853 per
cent earned on the same stock in 1913.
Mr.. LOrec says in the report that the
full crew law OF this state added Sll7.-
100 10 the transportation expenses Of
the company i'm 1914. The total cost of
compliance with the law since it be
came effective, September l, 1913, was
S15SjOi. The cost for eleven railroads,
he states, during 1914 was Sl,149,S4i.