New-York tribune., 1922-11-26

PHILADELPHIA a READING RAILWAY
Growth of Revenues and Mileage
Year p pe Sross Net after Total
1919 sttSoo 900 s1sooeooo Insome son soo
'ls22'. 100000 ll,soo,ooO 600, 900
INC =. sego 1863 f42s
'Dstimated. tDecrease.
Between 1912 and 1922 tho mi,eaye
operated by the company Increased
from 1,015 miles to 1,127, or II per
cent.
The Philadelphia g. Reading Railway
is the backbone of the Reading COM
bination and all of its outstanding
stock is owned by the parent company.
The railroad is normally d heavy
Garner. but the coal strike has seri-
ously affected the 1922 results.
The Reading Railway is one of the
principal coal carrying roads Of the
country. Over so per cent of it's total
freight traffic comprises this commod-
ity,. little less than half Of it being
anthracite and little more than half
oituminous. The Reading lines them
selves tap the rich anthracite district
Of Pennsylvania, but the bituminous
traffic is mostly received from connec-
tlons. The company is sound finan-
cially, having built up a very large
surplus and possesses a working capital
of ample proportions
PHILADELPHIA & READING coal AND
IRON COMPANY
Growth of Revenues
Coal mined Gross Operating Net
1919
s.s7l, ola $s6, 1885 sl,131,115 s1,os5, $50
lo,67Tse7 .n,s44,4s5 7,947.14O 1854, sas
inc. 22% 1919 $685. a22ss
The Philadelphia Reading Coal and
Iron Company, the second Of Readings
three leading subsidiaries, owns in fee
S4,945 acres of coal lands in the an
thracite district Of Pennsylvania, with
improvements, and, in addition, con-
trolls 9,447 acres and leases 3,4S9 acres.
During 1921 the company operated
Company has appropriated large sums
Tor the development and maintenance
OF its coal subsidiary, but has not
largely pushed it's productive capacity.
READING IRON COMPANY
Financial Statement
1921 1912 Increaye
stock. $1,000, 600 100000 ---
assets ,22,117,22s l6,7s1,5Os .s,s25, sss
Current
Iiae'ts 2,7ls4o6 556,6s4 2.1s2,s71
Net assts sl9, ,Sss,s21 SIG, e,O2s $4,162,7s2
The Reading Iron Company is the
third Of Readings three important sub
s1diaries. Its principal business is the
manufacture of wrought iron pipes and
tubes but the company also owns and
operates blast furnaces, rolling mills
torges and foundries at Reading, Potts
town and other localities in PennsyI-
Vania together with large bituminous
coal property in that state.
Not much is revealed regarding the
hnancial operations of the company
but it is known to be very prosperous
IN addition to the regular annual divi-
dend OF per cent paid on it's 81 ,00O,-
ooo capital stock for many wears. the
company paid an extra dividend of ST.
50O,00O in 1909, one of $1,000. 900 in
l011, one of 100000 in 1914 and one of
S750,000 in 1915. The company has no
mortgage debt.
Estimated Property vaiue
In order to get at fair approxima-
ton OF the value of Reading Company's
assets, consideration must be given to
the asset value of it's holdings in the
various subsidiary companies.
The estimated property value of the
Philadelphia G. Reading Railway is
$300,000,000. It's total funded debt, in
Guiding bonds of leased lines outstand-
ing amounts TO S69, ,791 900. Outstand
ing stock of leased lines will aggregate
S4l,959,0oO. Assuming the Theoretical
retirement of all funded debt and
leased line stocks at par there would
remain an equity amounting to s1s8,-
256,0oo for the railway company's s42.-
$4,000 stock or 1921 share Of $50
par value. AS the Reading company
owns all Of the railways companys
capital stock, this entire equity would
accrue to the parent company.
The Reading company's Investment
in the Philadelphia Reading Coal
and Iron. Company totaled $77,357, ,0l8
at the end of. 1891 Add to this the
coal company's surplus Of Sa8, ,179, ,s5s.
which would accrue to the stock. and
therefore to the Reading company
through ownership of all of that stock,
and we arrive at grand total aggre-
eating $104 ,536,S77.
For the Reading Iron Company we
will use the figure representing the net
(coni'nuet Oh page nihs)