The Washington herald., 1917-03-06
GENERAL REMARKS.
REVENUES

Your Company carried an unprecedented volume
OF traffic its lines resulting from a continuance
OF the European war. and from the further eI-
rsnson Of general business throughout the countrv
which produced an increase Of II per cent in the
total Operating Revenues compared with 1915. The
Freight Revenue increased II per cent; Passenger
FPvcmen increased Is TCr cent; and EXpress Rev
enro increased = rer cent. Incidental Revenue
increased "a per cent due in a large measure TO
dcmurage charges paid for the unreasonable de
tention Of cars by cnnsiGnecs and shippers but
the Company's freight revenues would have been
greater had the cars not been so delayed. and
the Hire Of Equipment rayment would have been
lower
EXPENSES
Tho total Operating Expenses increased Is per
cent compared with 1915: Maintenance Of Way
Maintenance OF Equipment ls per cent. and
Transportation II per cent. To the same upderly-
ing causes be attributed the increase in all OF
these expenses namely, greater traffic and sub
stantial increases in the cost Of material, supplies
and labor.
Special attention Is directed to the Taxes which
increased 10 per cent, due principally to an increase
in Federal Income Tax from ] per cent to per
cent and TO larger revenues. This item OF expense
is one over which the management has control
and the increase (l2e per cent in the last ten
years. shows no sign OF abatement. IaSes no"
require u cents out of dollar OF net operating
revenue compared with cents ten years ago. II IS
significant that over twothrds Of the increase in
Operating Revenues absorbed by increased eH
penses and taxes The time seems close when tax
payers must for their own protection demand that
all governmental expenditures be fully reviewed be
fore being authorized that some reasonable limit
may be placed the constantly increasing Federal
State and Municipal expenditures for non productive
projects.
The Net Income for 1916 amounted to So 26.5Oi.l2
an increase Of 81 s5l lSl.S0 compared with the
previous year. Against this were charged the ap-
rropriations to the Sinking and Other Reserve
Funds, Cash Dividends aggregating six per cent
on your Capital Stock and Road and Equipment
expenditures on lines owned and leased, leaving
balance Of 28 5I.67 which was transferred to
the credit of Profit and Loss Account.
RATES
The appeal by your Company from the order OF
the Public Service Commission Of Pennsylvania
reducing certain anthracite coal rates. is still pend
ing in the Common Pleas Court of Dauphin
County; and the proposed advance in intrastate
passenger rates In the State of New Jersey, which
Is a rart Of the general llan suggested in 1914 ty
the Interstate Commerce Commission as a cans
for procuring additional revenue. is still srpended
By the Public Utilities Commission of that State
The necessity for higher rates is daily becoming
more evident, for while the results for the -hrst
eight months Of 1916 showed satisfactory increase.
yet since then the net returns have shown marked
reduction due to higher costs. Your Con'any, to
avoid congestion and to handle the traffic ccOnOuT-
cally and promptly, has expended, and is now cx-
pending, large amounts of capital upon which re-
turn must bs earned; It has made Adjustments In
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