The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-03-02
GENER AL REMARKS


The increase in the mileage OF the
lines directly operated was due chiefly
to the lease of the Northern Cenual
Railway.
Income Statement.
Business conditions on your lines, as
we'll as on other railroads, We're unsat-
isfactory in the year 1914. The total
operating revenue show decrease Of
$50 per cent, compared with 1918,
chiefly in the freight and passenger
traffic. arising from. untavorable com
merc.al and financial conditions, which
in the last five months of the Year
We're accentuated by the European War.
The gross revenues aad expenses in
clude, since July l, 1914 the operations
of the Northern Central Lines under the
lease to your company, and they also
include, in accordance with the revised
Classification of Operating Revenues
and Expenses OF the Interstate Com
merce Commission, effective since July
/. 1914. the results from Auxiliary opet-
ations, for whica separate accounting
was previously required.
Express Revenue shows a decrease
due to reduction in express rates,
and by reason OF the operation of the
Parcel Post. This will require some
equitable adjustment of the contract
with the Express Company, and offsets
to some extent the increase in Mail
Revenue.
Mail Revenue increased as a result of
the quadrennial weighing, effective July
L q.
weighing the mails, including the grow
ing parcel post. only once in four years
deprives the Company of revenue for
the increased weights carried each year
and should be remedied by an annual
weighing and an annual adjustment OF
pay.
The total Operating Expenses de-
creased SGT per cent. chiefly through
enforced economies required by the loss
of revenue and traffic. These were
effected by a reduction in the use OF
materials and supplies, in the work
ing forces of all departments, and IN
train and car mileage, and by deferrinG
other expenses, but having in view al
all times the preservation of the safety
of your tracks. equipment and facili-
ties. The. increases in wages OF en-
men, under the Wage Arbitration
awards, and other consequent wage ad-
justments, and the expense of comply
ing with legislative enactments, pre-
vented still further savings in en-
penses.
Railway Operating Income shows a
decrease of $685., ,53S.6S, compared with
the results of the lines operated by
for 1919 used in comparison had also
included the operations of the Northern
Central Railway for that year the Rail-
way Operating Income for both Com
panies would have shown an aggregate
decrease of s3.9S3,06S.95.
The Net Income for 1914 was $4,000
| T64.S2, decrease of S1,S30,067.97. com
| pared with the previous year: fron
which appropriations were made tt
Sinking and other Reserve Funds; GER
| tain necessary additions and better
ments were provided cash dividend:
! amounting to six per cent. were pait
| on your Capital Stock; and s12S.000.5;
was credited to Profit and Loss account
| The latter account has also been cred
| tied with s5,669.37s, the par value o.
the Northern Central Railway Company
1 received
dend and the cash dividends accrued
| thereon since January LIST, 1911; tn,
extra cash dividend of 10 per cent
amounting to .s1,o57,72O, received oil
your stock holdings in that Company
also the proceeds received from tn,
Manor Real Estate and Trust Company
which is owned by your company, re
sulting from the sale. to the Susque
hanna Coal Company OF coal lands for
merly leased to the Mineral Railroa;
and Mining Company amounting 4
$6I0.36S.sS and with profits from sale'
of securities and sundry credits. Agains
| this account has been charged S3,1S6.
| 031.3S, representing construction an,
real estate expenditures on long tern
| leased lines, especially the United New
Jersey Railroad and Canal Compan!
and Harrisburg, Portsmouth, Mt 10!
| and Lancaster hailroad Company thl
net income of your Company not beint
| sufficient to provide the same; advance
to Branch Lines for similar purposes
| which were unable to meet the same Our
of their own resources, and advances TO
interest on, and retirement of. waite
trust certificates and expenditures OIL
your water supply system; also tn,
rental and leasehold settlement of tn,
Northern Central Railway Company II
the adjustment of the accounts unde
the lease from January LIST, 1911, inyolv
ing a charge of $1.343.510.S3, so that tn,
net amount credited to Profit and Los
account during the year was $3.50.
174.S1.
| Legislation.
The increased scope and great bur
den of the duties and responsibilities
imposed upon the Interstate Commerc
Commission should now be followed b,
the amendment of the Federal law,
from which its authority is derived
The Commission should be definitel,
empowered by specific provisions Ii
these laws to strengthen the railroads
Upon which the welfare of the Coun