Evening journal., 1922-04-04
P. R. R. EARNED
S2.43 ON SHARE
Freight and Passenger Rev
enues Decreased S66.6S5.-
GA Last Year
EXPENSES AGAIN
CUT $l59,2oI ,3OS

The Pennsylvania Railroad Com.
pany's annual report FOR 1921 show.
net income OF s243O76e9. de.
crease OF &S.4sAoot. and equivalen,
'o s2.42 share nthe s.9Sa.s6s
shares tpar value $500 OF capfal
stock outstanding IN 1920 the com
p"ny earned s3.2S share.
Operating results during The vear
NOT including iap-over revenues and
expenses applying to the period of
Federal control. compare with 1920
AZ follows.
r..., 1921 Decrease
operating reV-
enurs ........ $500 f75.ngt ffe fg, ga
Total railway
operating rN-
penses ....... f7n.7Sgeaq f5a aat l0s
revenue
from railway
p operations e.. s9iis55 .92.so5.sl,
Railway oper-
a,ing income w.ssssi9 800 s,7 90,
Grating income n.aaioss so $50 .aa'
aung income asoasts7 .iaeisas,
Gross Income 20 l6s.i15 $3.50 50.
Net income. 2t.3O7 $50 sia4'0oi
balance 10 profit
ana loss ~. na1o7 1887.
Balance. surplus i7.os3 .3s7 i.seg. 90,
Increase
the return on tho property invest
ment of the company and It's direct,
operated lines during the year wa.
2.6 per cent on total Of 81 sO6.O76.-
All, not Including materials. sup
piles or working capital
The most striking features of tho
roads report are the decrease of
f55.f3s.3t0 In freight revenues. a
reduction OF Si59.29l.3OS In oper.
ating expenses and the Increase of
AlS S.242.a5S in operating Income
due mainly 20 an Increase of SlO.-
5s4.A46 In miscellaneous income. an
item originating from the Fedora
control and guaranty period
The heavy decrease In operatinr
expense resulted from the man,
economies put into effect In 1921 O,
meet the reduced volume of trafi,
and overcome the initiating n on.
Grating expenses which constituted
the aftermath of the war.
Many significant statements ar,
contained In tho remarks Of Saniue
Rea, president, 70 the shareholders
He says: Certain wages and work.
inE conditions are vet much out of
line with those In effect prior 10 the
war and further adjustments arc
essential 10 reduce the cost m trans.
portation. adequately maintain m,
property and enable the company tr
pay fair return 10 the stockholders
The employees shared IN the hiEi
wages OF the war period. but IN,
stockholders dividends we're not IN
creased In that period
Since the war their dividend
have been reduced. and your direc
tors feel that an obligation rests OF
the management 10 restore the pc
cent. dividend rate as soon as Il car
he done without detriment TO tn,
maintenance OF the property. Capt
tai Is just as much entitled 10 a fail
return as labor is 20 receive fall
wages. and no more salutarv steI
could be taken 10 restore public con,
fidence ard improve existing condi
tlons than FOR your company TO b,
able TO resume It's 6 per cent. dlyl
dends and reduce frafic rates as tn,
result OF increasing economical op.
Grafton. secured largely through ad
justments in wages and workinl
conditions"
Concerning the Interstate Com.
merce Commissions hearings on IN,
subject OF freight rates ne saws
THE Commission will be impellet
TO consider not only the effect OF
rate reductions on the earnings of
the carrier companies. but also the
effect on their ability To- finance new
equipment and facilities which. ID
neglected. will cost the public many
times the savings that reduced rates
will produce; because inadequate
facilities mean delayed service. re-