New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-01
transportation of Sup
plies for Europe Offset
Business Dizziness.
REA SEES BIG LOSS
BY COAL RATE RULE
Offers to Help Wilson in Railway
Inquiry-S Southern Pacific
Stock Held.

The PENNSYLVANIA Railroads annual
report. issued to stockholders to-day,
discloses how the company emerged
last wear from the depression when
prevailed during 1914 and the early
months OF 1918 Total operating rev.
enucs were s196. 62s. 40, an increase Of
s937G.3I9. or per cent. The earning
mower on the s499 ,2O3, 200 capital stock
in the hands Of the public was ad-
vanced from 6S3 per cent 20 s.49 per
cent. or 2l9 per cent above the divl-
dend requirements.
revenues accounted for the Dig mere.
ment in gross, passenger, man ana
other portatlon income All suHer-
ing losses. Samuel Rea. president says
in his remarks on the operations OF the
road during 1915 that the gam IN
freight earnings was due largely TO the
remuneration Of supplies for shipment
to Europe.
The per cent increase in rates
granted by the Interstate Commerce
Commission contributed about per
cent of the total gain in freight rev.
enues.
Railway operating income increased
stO.992.153, or 3l.2 per cent, compared
with the unsatisfactory results OF 1914,
and IS per cent in 1913. The net in
come for last year amounted 20 S42,-
425.322. an increase OF ss,334, So. Out
Of this surplus appropriations were
made TO sinking and other ieserve
funds. additions and betterment3. III adj
di;ion 70 500, 952,2l9 paid in DIVIDENDS.
Mr.. Rea says that If the reducuon
ordered By the Pennsylvania Public
Service Commission in anthracite Goa!
rates is sustained by the courts 1t VII!
cause a loss in the roads revenues OF
81, 50O.000 annually. =.
Referring 70 the recommendation OF
President Wilson for a Congressional
inquiry into the transportation problem
and regulation affecting common car
riers Mr.. Rea declares his company Is
willing 10 render all reasonable assist
ancc required. and adds:
"Twenty-eight years have passed
since the enactment Of the orig nal in
terstatc commerce law, during "hlch
radical changes have occurred IN the
commercial and financial conditions OF
the country and in railroad manage
ment and operation. and Federal ana
State regulation has been EXTENDED 20
practically every department Of tine
railroads Public regulation has served
many useful purposes. W hich = - de-
sirablc 10 continue. but there ha; been
"a notable lack Of definite business
policy and cooperation between the
Federal and state governments as 10
railroad legislation and regu.atIon'
heavy financial burdens have been I'M
posed, and the powers consistent win
responsible railroad management nave
been seriously curtailed. .,
Further. the investment IN railroad
and equipment provided for public ser
vice in recent years has not been earn
ing an adequate return and. conse-
cucutlv. railroad expansion has been
materially retarded and the constryc-
ton Of necessary new lines prevented
However. the time for complaint
and destructive criticism has passed
and through this inquiry an opportu-
nitv IS presented for formulating Il
constructive policy and insuring equi 70
table treatment for the railroads, whlcn
will be sustained by public opinion,
realizing that the railroads are very
essential factor in creating and con
tinuing national prosperity. Then their
owners and the investing public will be
encouraged to provide in the future
the large sums Of private capital re-
ouired TO place our transpo ration sys..
TENS in position to meet Il needs OF
an expanding commerce
Contradicting rumors current last
fall that the Pennsylvania was dispos-
ing Of it's Southern Pacific stock, the
report shows no change IN the com
pany's holdings on December 81 last. as
compared with the similar date OF 1914.
The Pennsylvania Company. however
which operates the lines west OF Pitts
burgh announced that it had sold dur
ING 1915 a portion Of its Southern Pa
ci6c holdings.