New-York tribune., 1921-03-01
Pennsylvania
Net Income Is
Equal to $3.O8
Government Guaranty Helps
Overcome Operating Def
cit. Annual Report Shows;
Gain in Gross Receipts
Rail Expenses Increase
No Statistics Available 10
Show Economy: Change
of Annual Meeting Asked
The rennsylvania Railroad. opera,

The Pennsylvania Railroad. cperae-
,nr 7.4c5 miles, earned total OF
sssros.Ss7 net in 1920 from the rental
If It's road to the government for the
frse two months OF the year, a guar
sntv OF net income from the govern
ment for the next six months, and the
oneration OF the property itself with
out guaranty in the last four months
After taking into its accounts miscel-
ianeous income. such as dividends and
Interest on the securities owned and
after psyingI interest, rental charges
and sinking and reserve funds, the
company had a surplus available for
dividends OF S30,561 ,SS3, the equivalent
of sS.06, or 6.l2 per cent. per $50 share
ot stock
Had the property. however, been
operated without rental from the gov
eminent or guaranty of net income,
ana actual receipts and rates had been
the same, j. would have failed by
s4s. AS Of earning it's expenses and
taxes. The gross operating revenue for
the properly as reported 10 the Inter
state Commerce Commission the re-
uort to the I. c. c. covers 1853 miles J
was s5s6.SG0 ,75s in 1920. as against
s4Sa.270945 in 1919. Operating ex-
1enSeS IT lS-U amounted 70 SoSV ,U4S,
car, against s455 ,357 46l IL 1919. Taxes
deficit after paying taxes and rentals
in 1920, S46 ,229 ,42S, compares with a
net income in 1919 Of SIS, ,9OS,ss
IL was asserted that during the years
1918 and 1919 the Pennsylvania was
not maintained By the government at
as high a standard as has been set by
the company. The governments excuse
was that IL could not get men and
materials under war conditions. Dur
ing peace conditions OF 1920 main
tenance costs increased, but in not
much more proportion than was &C
counted for by the increased wage
scale paid Transportation expenses,
which represent the actual cost Of
moving trains. amounted to s29S .23O.-
16s in 1920, against s2l5. 463,7I7 in
1919, an increase Of some S78.000.0OO.
The award OF the Railroad Labor
Board increa sing wages was made re-
troaccive to Nay. :. 1920, and on the
Pennsylvania according 20 President
Samuel Rea, approXmated an increase
Of 2liz per cent, or GS.O00000 a north
*or the entire system, which employs
268000 men
Rate Increases became effective
August 26, 800, and on the Pennsyl-
Vania figured out at about 10 per cent
on freight traffic, except such through
rrafic as was irterchanged with rail
roads in other rate territories. On THY
traffic It was about 33 l-3 per csnt.
Passenger rates were increased 20 per
cent and an additional half cent
mile for passengers carried in Pullman
cars.
The rate increases were effective for
only about four months Of the wear,
whereas the wage increases were ef-
fective for eight months o. the year.
The company's annual report Tor 1920
includes no statistics o. operation Of
The properly. Hence il is impossible
for observers TO Judge as 70 the econ-
omy with which the road has been
operating, and in recognition of this
fact stockholders are asked bv the
management Of the road TO change the
Time Of holding the annual meeting
from the second Tuesday in March to
he second Tuesday IN April. beginning
IN 1922. So vast is the PENNSYLVANIA
system that It mas become & physical
impossibility to compile statistics Of
operation r. time to make report TO
stockholders, including such statistics,