The New York herald., 1922-04-04
PENNSYLVANIA NET
DECREASES IN 1924
Income of S24,307, ,669 of Last
Year Shows $8,494, ,0O4
Drop in Period.

The seventy-nfth annual report Of the
Pennsylvania Railroad Company, to be
issued to-day to the owners of its
S499,173.400 of outstanding capital
stock, discloses that in 1921 the opera
ton of the road resulted in net income
of $24,307.669 after taxes and fixed
charges, or 4.S7 per cent. on its stock.
In 1920, with the aid of compensation
and guaranty from the Government, the
companys net income was $S,494.004
greater after charges and taxes.
Items in the Pennsylvania corporate
income account which are comparable
with those Of the preceding year follow:
Decrease from
Net oper income. :. .s41 .221 .o67 $21 1891 500
ToplVpsr Tsssf scos 5 'lssss sssSssi
DEDUCTIONS ........... 54.e50.765 145.5s7
Net income. ........ "a, 1907 1850 s.494 .004
Sinking FUND and res ddsssse osl sss ss
Credit bal. to P. L. 4ss,io7 1881
increase
The report was replete with evidence
of 1921 as year of shrunken traffic
and high operating costs, to meet which
the railroads cut wages, closed shops,
Increased efficiency, restricted the use
service to Offset traffic losses. That the
Pennsylvania was not excepted from the
conditions encountered by other carriers
appears in the fact that, despite ma
terially higher rates and increased ca
pacity of its road and equipment, its net
railway operating income was 40 per
cent less than that earned in 1911.
The following table affords compar-
ison Of the 1921 operating results of the
entire Pennsylvania System. including
its directly operated and affiliated lines,
with the actual operating results of 1920.
as distinguished from the Pennsylvania
Railroad Company. and results in 1920
with the aid Of Federal compensation
and guaranty:
1927 from 1920
Gross o,,r. receipts ssss s5ssos SOC ). ss:, ,oss 90
Tran:portson a 81 sasp@sas esse,.
Net Nsy o.sras saa nsome
sfncreasc.
Declarations that your directors fee
thai an obligation rests on the manage
ment to restore the 6 per cent. dividend
rate, as soon as it can be done without
detriment to the maintenance off the
property" that "it is impossible to see
how further general reductions in rates
can be made without corresponding de-
creases in the cost OF labor and Wig
orous protest against high railroad
taxes, Federal state and municipal.
featured general statement by Sam
uel Rea, president of the company.
Certain wages and working condi
tfons are yet much out of line with
those in effect prior to the war;" he said.
land further adjustments are essential
to reduce the cost Of transportation.
adequately maintain the property and
enable the company to pay fair return
to the stockholders"
He said that the companys December
payroll carried 2S0,z33 names. de-
crease OF % per cent from that of
year previous and its stockholders num-
hered 1852. holding an average or
seventy shares. An increase of 651 PEN
sioners brought the pensions paid In
1921 up to 81. .3S7, OPS
Expenditures on road and equipment
during the year totaled s3S,569.631 on
the Pennsylvania Railroad and $3l,929,-
5S7 on its leased lines. most OF which
represented equipment allocated by the
Government and purchases Of equipment
owned by the Pennsylvania company
The road has not effected with the Gov
ernment its final settlements Of accounts
arising out of Federal management and
operation for Government account in the
six months guaranty period