The Washington times., 1917-03-06
n,6S,s2GA AoH

, piles and In taxes; in addition to which II Il
bupdsned with conflicting and westeful rega'
latton and laws. These increased costs have
made heavy Jnroads into your profits during
the past few months. and it1is expected that
their effect will be even more, acute In lsl1:
With such a widespread and pressing demand
for larger terminals. greater facilities and
more equipment. II u essential Of they are to
be DToyidedl to grant the rsllroeds the higher
rates necessary TO place them in position
to meet such rising costs, and give them the
earning basis to attract new capital for the
additional transportation facilities and ser
vice so urgently REQUIRED The lack OF suffie-
lent surplus for many years past has prevent
ed the railroads from providing such Addi-
tiobs- and bstterments. In Advance Of trAffLc
demands. and while Labor and material costs
were reasonable, An Illuminating feature OF
tha railroad situation appears In the Inter
state Commerce Commission report Of Deceu-
ber lst. 1916. showing that for practically all
the railroads In the country the average
freight revenue per ton mile has fallen from
IS mills in 1891 10 ia mills In 1915 Q dacreass
ly Increased costs and -hlkher standards en-
terfng into the transportation service. An
other Important statepent. in that report
showed the return on the Investment In Road
and Equlpne1t for, ,the yeas ending June 30th.
lSiss To be bitEhtly % ezceas Of Sspe1t cent.
That return Is a great Improvement compared
with preceding years. bot Is vas earned An. .
greatest prosperity In. Its history. and when
% many OF the Industries. which are frae 70
fix->their prtces to meet msrket -coudittons,
latter t< healthy condition, beneficial to the
country at large. but ~ IL also one in which
the -esiIToads, which must pay the greatly In
allowed to participate through higher rates
upon the commodity they sell, vtz- transpor-
tatIon. Under the existing International COM
plications, ard exceptional Industrial activity,
there should be no delay In placing the Fail-
roads In the strongest financial and physical
condition.
RDrURN on INVESTMENT IN ROAD AND
EQUIPMENT.
While your Net Income for the year, after
deducting the sinking and ether reserve fund
charges, was equivalent to 10 per cant upon
the outstanding Capital Stock, the return
Equipment provided for public use Was ouiy
So per cent. on the PennsylvanIa Railroad
and lines directly operated. and but SIS pei
burEh. Your Company maintained its divi-
dend and earned \ substantial surplus, but II
II had not heretofore consistently pursued the
policy Of investing Its surplus above reason
able dividends In the betterment OF your nall
roads and equipment Instead of providing
therefor through the issue of additional bonds
and stock. the present dividends could not be
maintained under the existing traffic rates.
TRAFFIC.
Improved efficiency characterized the opera
tlon during the year, In both freight and pas
senger traffic. The number Of tons increased
l6 per cent. and the tonnage mileage increased
IS per cent. but largely by heavier car load
ing the additional tonnage and mileage re-
qulred an increase OF only per cent in train
mileage. II IL interesting to point out that
the average train load has been Increased in
the last ten years from $50 tons 10 so TONS OF
81 per cent. The average revenue per freight
train mile increased s per cent, but heavier
expenses and taxes absorbed the Increase and
caused a slight decrease In net revenue per
freight train mile. The average ton Iuile reve-
nue. received was slightly less than IN 1915,
hRinR n rar N n .
less than 50 per cent, Of the average freight