New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-02
REA ASKS MORE
POWER FOR &c.
Pennsylvania President
Advises Amendment of
Federal Law.
URGES PROVISIONS TO
STRENGTHEN ROADS
Systems Annual Report Shows
Decrease in Net Earnings
of S3,O00,000.

nc lCNNSNlNhnlh AdlAEOaN NOIh-
panys annual report, issued to stock
holders to-day, falls below general ex-
pectat.onS IN the matter of earnings
during 1914. The surplus available for
dividends on the company's S499,2OS,6OO
capital stock is equal to 6.S2 per cent
before sinking fund appropriations.
compared with S.4 per cent earned on
$499 ,23S,S stock outstanding at the
end of 1918.
Dividend requirements of approx
mately 100000 left only little
more than 100000 of the years in
come for improvements and profit and
loss surplus. All except $4,000 was
appropriated for sinking fund and for
bcttcIments not Immediately produc-
tive. Expenditures for coal and equip
ment on owned and leased lines
amounting TO Sl6,961. 900, are described,
and the management declares its lnten-
ton of continuing the electrItcation OF
the main line out of Philadelphia,
which has practically been completed to
West Philadelphia.
As OF the end Of the year current
assets, exclusive OF Sl5,6OO,OOO ma
terials and supplies. over current La
bities were sl6,300,000, besides time
drafts and deposits of more than
$1s.O00O00
Railway operating revenues in 1914
were SlS1 .1S4, o22, decrease of SlO,-
9l6,667. Operating expenses and taxes
consumed Sl46,078,564 Of the total
gross, which. allowing for further
minor deduction for uncOiiectlble rev.
enue, left net earnings OF $35,O9+,944,
loss of S3,0S7 ,53S. Incorporating in
come amounting 10 Sl6,697.27S brought
the years total net up 20 S5l,792,223,
and deduction of charges other than
operating and taxes left surplus Of
S34, 090, 764, decrease o. S7,S3O,O6I.
Referring 10 the increase in freight
rates granted in the Eastern rate case,
President Rea says that while he rev
enue obtained from the advances al
lowed will be helpful. IL is Of almost
equal importance to the owners OF rail-
roads TO know that their interests Will
be protected under law by the com
mission.
This expression" he adds, coupled
with the increases allowed, should i'm
part additional confidence TO the bust
ness of the country. There remains,
however. great deal Of constructive
work TO be accomplished before gov
ornamental regulation of railroads, state
and federal, is placed on a satisfactory
basis.
Discussing the subject Of regulation.
Mr.. Rea says the increased scope and
great burden Of the duties and respon-
sbilities imposed on the Interstate
Commerce Commission should now be
followed by the amendment Of the
federal laws. He adds:
"The commission should be definite
~ empowered by specific provisions in
these laws TO strengthen the railroads
so as TO encourage the investment Of
private capital for the expansion OF
their facilities and services, and the
preservation OF their credit by means
of reasonable rates which viii accord
with the higher costs and burdens
rlaced on them in complying with
statutory requirements and govern
mental awards and regulations. The
commission should be enlarged and
so organized 80 to be able 20 deal
promptly with the important railroad
questions which under the ext ting
scheme Of governmental regulation
must be considered by IT.
"The position of a commissioner
should be placed beyond political IN
fuence by a long tenure Of office, ard
the compensation should he sufficient
20 attract and retain men Of the wld-
est experience and greatest ability. The
regulatory power of the commission
should be clearly extended TO the su,
pervision and control of all rates ard
PRACTICES which directly or remotely
affect interstate transportation or com
merce, and should include power TO
maintain q rate structure approved by
or satisfactory to it, even though 70
.!complish this il should be necessary
70 prevent reductions Of rates or TO
compel advances Of rates found by the
commission to be unreasonably low.
"The services Of the commission
should be made available to remedy the
concededly inadequate revenues Of the
railroads for the transportation OF
mails and parcel post and the power
of commissions, state and federal, 10
suspend increases in rates should be
limited. so as TO prevent loss of reve-
l.ue to the railroads during he sus-
rension of rates subsequently deter
mined 10 be reasonable Increases in
WAGES and other burdens which sell
,uslv enlarge railroad expenses should
rot he imposed by legislation. or
through awards Of governmental
bodies. unless the ability Of the rail
roads to pay the same under the rate
schedules then in effect is clearly APP
parent, or unless the Interstate Com
merce Commission is prepared TO ap-
provc Of increases in the rate schedules
that will enable the railroads to meet
the same without impairment of their
credit or efficiency"