Evening star., 1942-03-12

Pennsylvania" between Chicago and New
York, afotding the latest evening departure
fro-. Chicago with morning arrival at
Pf : jelphia, New Yoek, Baltimore and
Washington.
In cooperation with its connections and
other railroads m the ChieagoFloeida pas
seneer field, the Company participated IN
a comprehensive plan for full coordination
of fast passenger service between Chicago
and various parts Of Florida, effective
December II, 1o41, which resulted m sub
stantial operating economies while at the
same time afording the travelling public
the fastest and most attractive sleeping car
and coach service ever offered in that
territory.
A number Of other improvements in
passenger train service were also effected,
including further quickening of schedules
of several through trains between the East
and the West,
During the year, demands were made
upon the railroads Of the country BY the
labor organizations for heavy increases in
wages, and modification Of working condi.
tions. as result of which the basic rates Of
pay of certain employees were increased OF
cents per hour and 10 cents per hosn for
others, with certain additional concessions
for paid vacations. On the basis Of 1o4I
payrolls, the increased cost to the Company
per annum is $4,000, 900.
FREIGHT AND PASSENGERRATES
In addition to the wage increases which
involved an increase Of approximately
s,37,oo 900 per annum in the operating
cost Of the railroads, the railroads antici
pated, with the war on, increases in other
expenses which would not be taken care
of by the probable increase IN volume.
Thus, unless increased rates could be OBJ
tanned, the railroads efforts to continue to
provide the adequate and efficient railroad
transportation, made necessary by the war.
might be seriously affected. The railroads
Of the country, including the Company.
therefore, petitioned the Interstate Com.
merce Commission on December u, 1o41,
for authority to increase freight and pas
senger rates, other than the special rates
provided for the military and naval foeces
Of the United States travelling on frlough.
Hearings have been held in this proceed
ing The Commission on January II, 1o41,
authorized an increase in passer~>r tres:
and on March \, 1o47, author {
increase in freight rates.
Taxes amounted to s66,Iso,54G, Il in
crease of saa.a74,,6o, OF 5o.S9o. OF this
s18,648,8S5 was chiefly due to larger in,
come and higher Federal Income tax rate:
Higher payrolls resulted in an increase Of
s1,S11,474 in Unemployment Insurance
taxes, while Railroad Retirement taxes in
creased $1,81s,oo1.
All taxes require about 1913 cents out Of
each dollar of operating revenue, equivalent
to 1917 ($Jo4 per share, an increase OF
$3.50 per share) upon the capital stock.
The railroad. continue to be the only
form of transportation used generally by
the public that provides its own right Of
way and terminals, pays for their main
tenance, and in addition pays taxes for the
support of Government
STOCKHOLDERS
The Capital Stock Of the Company, It
the close OF tnc year, WAs oWilco ny %oo,oiS
stockholders, the average holding being 81
shares Information concerning the Com.
pany and its activities will Be furnished
stockholders upon request and constructive
suggestions respecting the Company q its
service are always appreciated and receive
careful consideration.
nowledging the continued efficiency
g this period Of great national stress.
@ do their full share in meeting the
t have now been placed upon them.
NV. CLEMENT, President
ANA RAILROAD
VIA PENNSYLVANIA
s e{ Dc A~-slsl Report tro-~
eet StAtso~ Building. Phlnde!phd, Pa.