The sun., 1919-06-07

based on s0% OF ~
rental contract 49,. 14,l7t52s Dec. 2,Tsss53
Other income ........ 4,5s5.e21 Inc. 1881
Total income ........ 22,36I, $50 Dec All $50
Net income .......... 12,ssi,o52 Dec. 2,536.lis
! Per cent. on capital
Dividends paid ...... s.4t4. $50 ........
surplus for year. 4.sssT2 Dec a,5x.ii5
w. II. Truesdale, president of the
lLackawanna. in the remarks to stock
holders said in part:
After an agreement had been reached
| over the standard form of rental contract
the railroad companies had great difiicul-
~ in securing the execution Of their con-
tracts, many Of which have not at this
writing been closed. that of this company
among the number. There has been no
disagreement as to the amount due this
company as it's annual standard return,
as very early in the negotiations this
was certified to by the Interstate Com
| merce Commission under the terms OF
the Federal control act as $15.749,476.
1T will be observed that the company
has included in its accounts but 80 per
cent. of its certified compensation for
1918. its action in this regard being in
conformance with the provisions Of the
Federal control act, which specifies that,
| in event a contract Is not executed be-
tween the Director-General and any
| company, the President may allow not to
1 exceed 80 per cent. Of the compensation
due such company under said act. There
would seem to be no good reason why
| the full amount should not ultimately be
collected, as the net operating income
for the year OF the company's lines taken
over by the Director-General was about
S250,O0 more than the full amount Of
compensation due the company.
| From an analysis Of the accounts be-
tween the company and the United
States Government, 1t will be seen that
at the close OF the year there was due
| the company from the Government a
balance of $6.912,062. There has been
paid on account OF this balance. since
the close OF the year. 100000.
| while the taking over of the rail-
| roads OF the country and their operation
by the Federal Government was very
generally recognized as a war necessity
anC owners OF the properties and the
public at large approved Of this being
| done, the results have, as Is generally
conceded, been very disappointing as
respects the earnings of the railroads,
the net results Of their operations, the
amount the Government has had to ad-
vance to them from the revolving fund
appropriated under the Federal control
| act and the efficiency OF the service rem
| dered to the public.
almost Immediately after the armistice
| was declared there arose a demand, which
mas been growing and spreading all over
the country. for the return Of the rail-
\ roads 10 their owners, as early as posi-
| bic Owing to the crippled financial
condition of many companies the feeling
| Is very general among the official heads
thereof that before their properties are
returned to them Congress should enact
scme legislation that will strengthen and
protect the credit OF the different COM
panies In a manner that will CO.
| ordinate their revenues with their ex-
pondituros and thus insure satisfactory
results to holders of railway securities
| with this in view numerous plans
have been presented to the Senate Com
mittee on Interstate Commerce for Sc
| curing the amendment OF existing laws
both interstate and intrastate, that will
In their operation protect the railway
companies better than has been the case
ir recent years. The one submitted by
the Committee of the Association of
Railway Executives has been approved
by very large number of the princi-
PAL railroads of the country and It is
felt that, II adopted, this will accom-
plish what Is desired in this direction.
| 1.-The future status of the railway
companies of the country generally, both
physc and financial, is anything but
reassuring as result of the Govern
ment's experiment in managing their
properties. The public does not as yet
fully realize Or appreciate, nor will 1t
for some time to come, how seriously
and permanently the transportation
facilities of the country have been Grip
pied and their future growth stunted."