Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-03-06
GENERAL REMARKS.
REVENUES

l. REVENUES.
Your Company carried an unprecedented volume
OF traffic on its lines, resulting from continuance
OF the European War. and from the further ex-
panSon of general business throughout the country,
PED xh N
The Freight Revenue increased IL per cent I;
Passenger Revenues increased 10 Per cent; and
Express Revenue increased 25 per cent. Incidental
Revenue increased 81 per cent, due in 5 large
measure TO demurrage charges paid for the un-
reasonable detention OF cars by eonsiguees and
shippers but the ComPany's freight revenues
would have been greater had the cars not been so
delayed. and the Hire of Equipment payments
would have been lower
ExPESsEs.
: The total Operating Expenses increased is per
cent compared with 1915; Maintenance of Way
and Structure Expenses increasing II per cent;
Maintensnee Of Equipment 10 per cent. and
lying causes can be attributed the increase in all
OF these expenses, namely. greater traffic and sub
s'sH;iSi increases IN the cost Of material supplies
and labor
Special attention IS directed 70 the Taxes which
eTeAsc IN FedeTa incone TAI from per - cent. mt to
PEI cent, and 10 larger revenues This item OF
expense Is one over which the management has
no ecntrol and the increase tl2s per cent. in the
lAst ten years shows no sign OF abatement Taxes
now require Il cents out Of every dollar of net
operating revenue. compared with 5 cents ten
years ago, Il IS significant that over two-thirds
OF the increase in Operating Revenues absorbed
by increased expenses and taxes The time seems
tSoa demand that all governmental expenditures be
fully reviewed before being authorized. so that
some reasonable limit may be placed on the con-
stsntiy increasing Federal. State and Municipal
expenditures for non-productive projects
FINAL REsrLrs.
The Net Income for 1916 amounted to So, ,276.-
sos L. an increase of So S5l ISL 50 compared with
the previous year Against this were charged the
appropriations 10 the Sinking and Other Reserve
Funds, Cash Dividends aggregating SIX per cent.
on your Capital Stock and Road and Equipment
balance Of 81. .256. 5si6T which vas Transferred to
tae credit Of Profit and Loss Account.
RATEs
The appeal by your Company from the order Of
the Public Service Commission Of Pennsylvania,
reducing eertain anthracite coal rates. is still pend
County: and the proposed advance in intrastate
passenger rates in the State Of New Jersey. which
she Interstate Commerce Commission as 9 means
for procuring additional revenue Is still suspended
. The necessity for higher rates daily becoming
more evident. for while the results for the 6rst
eight months of 1916 showed satisfactory in
.cresse vet since then the net returns have shown
a marked reduction due to higher costs Your
Company, to avoid congestion and TO handle the
traffic economically and promptly, has expended,
upon which return must be earned; it has made
adjustments in employeS' vages to retain them in
the seniee and enable them 10 meet the higher
living costs and is paying extraordinary increases
an the prices Of materials and supplies and IN taxes,
an addition 10 which il Is burdened with conflicting
and wasteful regulation and laws These increased
costs have made heavy inroads into your profits
during the past few months. and it is expected
that their effect will be even more acute in 1917
With such q widespread and pressing demand for
larger terminals greater facilities and more equip
ment il is essential f they 60 be provided to
grant the railroads the higher rates necessary to
place them in a position 60 meet such rising costs.
aud give them the earning baas to attract
capital for the additional transportation facilities
and service urgently required. The lack Of
sufficient surplus for many years past has prevented