Evening journal., 1921-03-01
P. R. R. Income
OFF SlO,O66,425
Annual Report Shows Total
Net Revenue for 1920
Was $32,SO1,673
URGES FAIR
RETURN FOR ROADS

A decrease Of tio.0es.425 in the
net income Of the Pennsylvania Rail-
road Co. for the year ended Decem-
her 81. 1920. is shown In the seventy
fourth annual report OF the company
made public today. the not totaling
S32.S0i.673. compared with s42.-
S6S.O9s in 1919.
Gross income for the year was
fS7. .666.701. a decrease OF S4,693, ,66s
as compared with the year previous.
while total deductions from gross
income aggregated S54.S65.02S, al
increace OF $5,372.757 when COM
pared with the 1919 figures
Total railway operating revenues
FOR the year 1920 were S229.S29.415.
against operating expenses OF {2O7,-
661.253.
The balance transferred 20 the
profit and loss account for the year
was S6i1.479. a decrease Of t9.SS9.-
| 23s as compared with the previous
year. There also was added TO that
/ account S2.191.461 sundry net
credits. due chiefly 20 termination
Of consolidated mortgage sinking
fund No. upon maturity OF the
bonds. making the amount TO credit
OF profit and loss December 81. 1920.
S4S.9O5.393. an Increase OF S905,393,
over the previous year.
The report shows compensation
accrued under federal control for
the first two months OF the year was
l&13.156.96S. Income accrued under
guaranty provisions of the transpor-
tatlon act of 1920 FOR the six months
ending August 81, 1920. Is given as
S37.eS1,S14
Until final settlements arc er-
fected with tho government. both for
the federal control period and tho
guaranty period" says Samuel Rea.
president Of the company. some Of
the Items appearing In the income
statement and general balance sheet
are necessarily estimated"
A statement showing the operating
results for 1920 Is appended 10 the
report Of the president, but the usua
detailed statistics and results Of the
operation and maintenance OF the
lines for the year 1920 have not ye
been completed. and, according &,
the report. will be published later
B They will reflect" Mr.. Rea says
b "the large operating deficit for thi
first eight months. embracing TIVE
months Of federal control and si'
months. constituting the guaranty
? period. which deficit Is by laN
. lchargeabie TO the government. Tha
was the general experience Of "a
= railroads. because the rates n
transportation service were for IN
greater part Of the year material
below the basis OF existing wage
= materials and other railroad opera
- ing costs"
!, The total operating revenues
the road for the closing four month
Of the year. reads the report. wer
% increased through the constructiv
/. action OF the Interstate Commerc
Commission in authorizing rate In
q crease and 20 tho larger volume q
trafic compared TO that handled j.
q 1919. which was reduced by strike
. In the iron. steel and coal indus
tries.
I President Rea reiterates the neces
lsity confronting all the railroads {
h earn a fair return upon the invest
Is ment 30 as TO maintain sound cred
Il land thereby provide for the contin
= ued demands for increased facilitie
Is and equipment 20 keep pace with IN
a growth and development OF the cour
l. try
Is 1T Is hoped" says President Re
"that the readjustment period OF IN
,s country will be short-lived. but
D. that no assurance can be given b'
n cause q Is not restricted to N
r. United States"
The increase In wages granted n
~ employees as Of May /. 1920. brougl
Sc the monthly payroll Of the system
r. more than S43. 900. 600 for employ
Of numbering more than 26S,0Oo.
on December 81. 1920. there We
133.O6S stockholders OF the compan
according 20 the report, an increal
he OF 1903 per cent compared with q
e. previous year. the average holdir