The Connecticut labor news., 1922-12-01
How Amazing Railroad Profits
 Are Hidden by Terminology
Expert Shows How Real Profits Dwindle Away Into Bookkeeping Oblivion, While the People
 Keep Coupon Clippers on Easy Street


 in the same columns of figures that report the wages paid to the track walkers ,or the sums paid for post. age, or printing, or stationery, o1 what not. But to whom was it all 1 paid? And where is it all now? Your property, gentle reader, and mine, certainly depreciates in value | but we don't hand out any money to l any person or persons to insure us against this unavoidable wear and tear.
 What About Millions Paid for
 "Retirements"
 5. The operating expenses were fur ther augmented some millions more for "retirements" which is explained l by no other word or words; just re- | tirements of locomotives, cars, etc | This means, of course, just so much expenditures for "junked" property But when a locomotive for instance that originally cost $I5,ooo or $2o,ooo | Is worn out and reduced to scrap iron l is 1t the practice to pay someone the 1 original price of the machine? We don't know. Who does? Let us turn now to the "Condensed Balance Sheet" as reported for the calendar year 1919, the latest report
 
 the total assets of all roads in the United States is reported to be just $27, 5o6, ,67o, Io4. And the liabilities to offset these assets may be stated briefly thus:
 Capital invested (stocks and bonds otherwise described as Hong term debts"), $2o, ,oo8, ,33o,3o5. All other liabilities, $7,4oS, ,7oo. Total liabilities, S2z, 5o6, ,67o,Io1 Included in these liabilities other than the capital invested, (the stock and long term debts), which is, of course, so much assets to the indi- vidual stock and bond holders, is something in excess of four billions and 2oo million dollars reported as "corporate surplus 'and "unadjusted credits" which being interprted, means, of course, just so much mor e undivided profit. Andi here we have another fund held over as so much profit not yet distributed or disposed of to the stockholders; a sum fully adequate to build and equip four first class railway lines from the Atlantic to the Pacific, and four other lines reaching from Canada to the Gulf of Mexico. ~ ..... "Unadjusted Credits Look Different
 When Analysed.
 The "unadjusted credits" consist for the most part of accrued depre- ciation." And here we have a par tial answer at least hint, how cor rect and how incorrect, we don't know, of the sums apparently paid out for depreciation already referred to. And still over and above the amount held as Corporate surplus and unadjusted credits plus the cap ital invested, the stock and the Tong term debts" there remains more than three billion dollars as liabilities. And to whom does this vast sum belong if not to the stockholders? Does any intelligent individual really believe that the railEoad corporations of the United< States are owing to any per son or persons, other than the stock holders, such a tremendous sum as three billion dollars? A "fact finding commission" would have no difficulty in finding all the facts with reference to these liabilities said to aggregate more than $27 7,ooo, ,ooo, 900.
 The subject is not exhausted by these necessarily brief comments but time and space is limited if the sub ject isn't More light on the same subject later on. The, false witnesses are not all editorial writers. Not by any means.