Five Mile Beach weekly journal., 1923-04-06
Synopsis of the 10th Annual Report
of the Pennsylvania Railroad CO.

ROAD Company Tor l92Z mas Deen IS
sued from the company's headquarters,
Broad Street Station, Philadelphia.
The operating revenues for the COM
pany and it's directly operated lines,
were $646,352,1 07 in 1922, an increase
of $30,628,203 over the previous year.
Due to increased efficiency and econo-
mics the operating expenses, amount
ing to $534,11S,6S showed a decrease
of $6,494,72S. Taxes, however, amount
ing to S29. O83 $50, increased $2,3OO,670.
After making deductions for hire of
equipment. joint facility rents, ETC.,
there remained a net railway operat-
ing income for the year of $73, 405 1927,
an increase of $36, PAT 1893.
The company's income from it's in
vestments in it's subsidiary and con-
trolled corporations was $1,000 1853,
while it's disbursements for rentals,
interest on funded debt and other
charges amounted to ~$7O,116,422. The
net income remaining for the year was
3 2,3S2,05S, an increase, as compared
with 1921, of $~S,074,3S9. Out of net
income the sinking fund requirements,
dividends and other payments were
made.
The net railway operating income
of $73, 405 1927 was equivalent to only
3.72 per cent upon the investment in
the properties owned and directly op-
Grated by the company, and it would
have been impossible to pay the usual
fixed charges and dividends out of that
return had it not been for the income
from the company's investments and
the policy pursued in previous years
of putting back large sums-aggregat-
ing not less than 1878, 900, 000-into
the property, out of earnings, without
capitalizing them.
The stockholders during the year
received a total of Az per cent in
dividends, consisting of three quar-
terly dividends of 1 per cent each and
one, covering the last quarter in the
year, of IL per cent. The resump-
ton of the higher quarterly rate,
equivalent to a 6 per cent annual
basis, is stated to have been due to
improved net results and business
outlook" Hope is expressed that this
rate, under fair business conditions
and by vigilant management and eco
nomical operation, will be main
tanned"
AS showing progress achieved since
Federal control ceased, the following
comparisons for the Pennsylvania
Railroad System, as a whole, includ-
ino both dirnafIu nnnroFo1 nnd aAn
trolled lines, are made between 1922
and 1920, in which latter year the
Federal Control and Guaranty periods
terminated:
"The monthly pay roll of December,
1920, of the Pennsylvania Railroad
System carried 2S0,733 employees,
while the total pay roll of December,
1922, carried 243, 459 employees, a de-
crease of 1924 employees The total
operating expenses of the Pennsyl-
vania Railroad System were reduced
yer $197 900, 900, of which sos, 900, 900
was in transportation expenses and
the balance in maintenance and other
expenses. The net railway operating
income in 1922 was $40, 705, 1897, COM
pared with a net railway operating
deficit of $50, @ ,4S3 in 1920, an i'm
provement of over $142, 900, 900. For
the maintenance of the property 6,097,-
662 ties were laid in 1922, compared
with 1926, 537 ties in 1920. In 1922 a
total of 1850 tons of new steel rails
were used, compared with 107, 1858 tons
in 1920"
President Samuel Rea in his gen.
eral remarks makes the following plea
for a constructive and encouraging
governmental attitude toward the
railroads:
at is difficult to understand the
continued failure of our Federal and
State Governments and the Commits
sions appointed for that purpose to
enforce a constructive railroad policy,
when it is considered that the rail-
roads are owned by the public and
their savings, insurance and other in
situations, the Pennsylvania Railroad
Company alone having about 40, 900
of such individual and corporate
stockholders and about 10000 bond
holders.
I"The railroads are c~onservatively
capitalized compared with their real
value, and their prosperity is essential
to the prosperity of the country, but
credit of the railroads upon which
depends the expansion of their tracks,
equipment and facilities, cannot be as
sured unless they are allowed to earn
q fair return unOO thpir nvacfpnonf
sufficient to encourage additional capt.
tai to be invested to give greater SER
vice to the public. This failure to
deal equitably with the railroads,
which constitute the chief collecting
and distributing system for the ma
tion's trade, commerce and products,
is all the more incredible because it