Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1916-03-01
GENERAL REMARKS.

GENERAL REMARKS.
Before reviewing the results of the
past year, it may be well to remind the
stockholders that April 18th, 1916, Will
be the Seventieth Anniversary of the
enactment by the state of Pennsylvania
of the Act Incorporating The Penn
sylNania Railroad Company. Notwith-
standing many financial and business
Nicissitudes in that long period. the
Company has endeavored to discharge
its duty to the public by maintaining
an adequate. safe and high standard of
transportation service; by encouraging
the development of the territory served
by its lines and connections; and by
safeguarding the interests of the stock
and bondholders, and the welfare of its
employees. Since it's Incorporation the
Company has paid return upon its
capital stock in every calendar year,
and has pursued the sound financial
policy of devoting many millions of dol
lars of its income to provide better
ments and improvements to its rail-
road and equipment, instead of issuing
capital stock or bonds to procure the
funds therefor.
Income Statement.
The total operating revenues for 1915
SHOW an increase of five per cent. over
1914, but were smaller than those for
1913: satisfactory conclusions cannot
be derived from comparisons with the
results of 1914, unless it be consider
ed that in that year and during the
early months Of 1915, the industries
of the Country were suffering from a
general depression. Since then, how
ever, nearly all classes of industry i'm
this Country have experienced an in
creasing prosperity.
While the increase in your freight
revenues (principally i'm the Mcrchan-
disc traffic. can be attributed largely
to the transportation of supplies for
Europe, the advance Of approximately
five per cent. in certain Merchandise
freight rates, which became effective
in the early part of 1915, was also help
ful. So far as can be estimated, the
advance in these freight rates increased
the total freight revenues 2.96 per cent.
Operating Expenses decrea sed III per
cent compared with 1914. This de-
crease was entirely in the Transporta-
tion Expenses, due to an accounting
lieved from freight charges on the
Company's lines for transporting ma
terial and fuel used by it: and also TO
a reduction in the fuel consumed re-
sultinS from the more extensive use
of locomotive superheaters, and to in
creased efficiency.
Railway Operating Income increased
31,2 per cent, compared with the un-
satisfactory results OF 1919, and is per
cent compared with 1918.
The Net Income for 1915 amounted
TO S42.425,322.32, an increase of SS,3S4,-
55150, compared with the previous
year, out of which appropriations were
made to sinking and Other Reserve
SregatinG six per cent. on your Capital
Stock. and certain Additions and Bet
terments were provided OH lines own
The Profit and Loss Account was
charged with SG,SS5,S55.73. consisting
principally of the discount and eX-
penses In connection with the issue and
sale of your General Mortgage Bonds
and the cost of replacement betterments
on the equipment of the Northern Cen
tral Railway Company which is leased
by your Company.
Freight and Passenger Rates.
The Public Service Commission of
Pennsylvania ordered a reduction in the
anthracite coal rates from the anthra-
cite fields TO Philadelphia. Believing
the reduction to be unjust. your Com
the law creating the Commission to ap-
peal the case TO the Common Pleas
Court OF Dauphin County. where it is
Courts. the order will probabIy also i,so
force reductions in a large number of
other anthracite rates. both intrastate
Philadelphia, and it is estimated VIII VIII
cause loss in revenue of 81 500 600
per year
Pursuant to the suggestion OF the
Interstate Commerce Commission that
carriers might secure additional revenue
from passenger traffic. tariffs of in
that Commission and the State Com
missions. and became effective. eXcept-
ing advances in certain suburban fares
out OF Philadelphia and baltimore
which were modified by the PennsvJ-
Nania and Maryland Commissions, and
advances In intrastate excursion and
conn, cG,nImutation fares in New Jersey.
reviewed by the Board of Public UtiiitS
commissioners Of that state.
The number of tons increased 5.57
per cent. the tonnage mileage 337 per
cent. while the freight train mileage in
creased only 0.4S per cent. The average
S.57 per cent, and the average revenue
per freight train mile increased Ell
per cent, resulting from the increase in
n nj lnn6 l1n
disc traffic. which bears higher rates
than mineral traffic. and the advance in
freight rates.
The number of passengers decreased
g.O0 per cent; and passenger mileage
decreased 6.16 per cent. Passenger
train, mileage however could be re-
duced only 800 per cent. The avera pe
revenue per passenger per mile increas-
ed 5.43 per cent. and average revenue
per passenger train mile increased 15
per cent, both of which reflect, in part,
the increased passenger rates.
steamer Operations to lie Discontinued.
In the enforcement OF the provisions
state Commerce Commission, acting
under its discretion conferred by that
Act, has declined to permit the further
operation of certain steamer lines oper-
ated by or in connection with Various
Railway Lines
s,The management OF the following
named companies. aided by your Com.
pany. endeavored. but without success,
TO retain the operation of their Steam
ers in connection with the railway
lines in your system, in the belief that
they We're necessary to accommodate he
the public.
The Commission issued an order
which in effect required the Erie and
Western Transportation Company (the
stock of which is owned by your Com
pany) to discontinue the operation. in
connection with your System, of its
Steamers on the Great Lakes effectiye
December 18th. 1915. and that Com
pany accordingly discontinued oper-
ations and sold its Steamers and ey-
poets to sell, or otherwise dispose of
it's remaining property when satisfac-
tory offers can be obtained.
The Commission also issued another
order requiring the Baltimore, Chesa
peake and Atlantic Railway Company
to discontinue the operation OF nearly
all of its Steamers on Chesapeake Bay
effective April 1st, 1916. and the Mary
Company. company affiliated in inter-