Evening star., 1945-02-24
RESULTS FOR THE YEAR

Business continued At Z very high level during 1914,
the volume being the largest in the Companys history.
Operating for the first time in almost one hundred
years of operation amounted billion dollars.
Notwithstanding the Unprecedented demands for trans
Portaton service the Companys operations were PEI
formed we'll A. better than, any Of the previous
war years.
While operating revenues increased $3o.242737, due
the greater volume Of traffic, this more than Offset
By increase sos o34 in operating expenses
principally BY the full effect of the wage Increases referred
the 1943 report increased of material and fuel
and the of handling the larger volume of business
Taxes remained abnormay high As result. even though
the volume of business greater than in any year in
the ComPanys history Net Income of e472o,431 was
o53 less than in l943 and $36 3o2 less than
in 1912 Notwithstanding this fact the dividend paid in
1914 maintained the rate paid in 1943 and
1912, or SIS 025o per share)
The management looks forward with confidence that
the Company will continue the country success
fully in l945 while planning for the time when the eco
nomc changes brought about by the end OF the war will
have be and standards Of peacetme ransPof
tation established.
VAR TRANSPORTATION
The performance of the American ralroads in meeting
the unprecedented demands upon them or transportation
service in these years has been widely commended
They have only carried the wartime load
have also moved the immense volume of traffic which has
been forced off the highways by fuel vehicle and tire
shortages together with practically all of the traffic form
ery moving in coastwise and intercoastal shipping.
Their ability render satisfactory service during this
period of record breaking traffic due primarily to the
fact that all through the depression from 1882 1889 the
railroads, both individually and collectively, had been
developing improved transportation methods and faci
ties and building up central organization to meet war
time emergencies.
The enormous volume of traffic incident to the war
effort concentrated the railroad, which serves the
largest centers of population and industry of the
Mississippi River and reaches the Great Lakes and the
Atlantic Seaboard has been handled only because the
Company through the years. has At great expense,
added to ITS plant and equipment
TAXES
Railway taxes of the Company for 1914 federal income
taxes excess profits and other federal and local
corporate and property axe amounted to 4s3
They wee with the exception of 1943 the highest in the
history of the Company These together with Unem
ployment Insurance of $12 o79, and Railroad
Retirement of 247, aggregated $l52s3s4o9
All taxes required 157 Of each dollar of oper
ang revenue the equivalent OF 233% upon the capital
stock $ll63 per share The extent Of the tax bill in
1914 is well indicated by the fact that took about
10 cents out of every dollar left after paying operating
expenses and other charges.
The railroads taxed only by the Federal Govern
ment and the States but by many of the counties
cities and other municipalities they serve These taxes,
which the railroads have borne for many years at ever
increasing together with all other kinds OF taxes
principally the heavy Income and Excess Profits Taxes
have reached the point where practically all of the So
called large profits Of the railroads during the war period
have been and are now being drained off in taxes
The result that the railroads have been unable to
ease the reserves that should be provided in fact should
be required, for rehabilitation after the wal.
REDUCTION OF FUNDED DEBT
Substantial reductions in the Outstanding debt in the
hands of the public continued during the year. the debt Of
System Companies being reduced $3l.2s3o77 The debt
Tur u