Indianapolis Times, Indianapolis, Marion County, 2 March 1944 — Page 7

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a SEER RE Ra

UNION SCORES

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Wartime Report of the Pennsylvania Railroad

SUMMARY OF 97th ANNUAL REPORT which was mailed to stockholders at the ead of _Pebruary. Operating revenues increased $141,298,532 over 1942. Operating expenses increased $109,369,984. Taxes increased $55,826,689, or 44.8% over the previous year. | Net

prevailed 8 whole can be viewed 13 8 creditable achieve.

ment. These was s heavy incresse in the” . volame of business handled, the milrosd

Notwithstanding decreases in rates, operat. ing revenues increased $141,298,532 due to

‘the greater volume of maffic, both passenger

and freight, but this very fact, together with higher costs of material snd fuel and in. creases in wages, resulted in an increase in opening expenses of $109,369,984. At the

same time, taxes increased by $33,826,689,

ot 44.8%, over the previous year.

Despite the fact that the Company in 1943 -

did the largest business in its history, its Net Income was less than in 1942 by some $16,050,309 because of the substantial increases in operating costs and taxes mentioned sbove. It seemed wise to maintain the dividend at the same mate as’ paid in 1942, -nsmely, 5%, or $2.50 per share. Dividvds ut hia cen wees neioedingly PUY in 1943.

THE NATIONAL EMERGENCY in 1943, the railroads performed a service

"unequalled in the history of transportation.

They were called upon to handle a volume of freight and passenger uaffic exceeding that of the record year 1942, The ability. of the nilroads to handle this record volume of trafic was due to further improvements ia facilities and oper.

sting methods; to splendid cooperation be-

tween the railroads, the shippers aad employes, the Army and Navy, sad other agencies of Government, and to the continued helpful swirude of the Office of Defense Traasporttion. . The nilroads look to the future with the conviction that they will keep in the forefront of industrial progress, and will meet successfully the competition to be expected. They ase convinced that no other form of

TAXES . : ‘ The milroads, always a heavily taxed industry, are accustomed to bearing their full share of the cost of government, and well realize’ that any excessive profits derived from the war effort should be subject to saaijou.as ase the SxCEss pious of say exis

. income was $83,418,484, a decrease of $16,050,309. :

fox met of the indnciag bf she aioonds 18 be done with borrowed money for which

roads have not been, like other industries, in

s position to carry adequate charges for sod income which should properly be charged off for these purposes is subject to the-excess pines tx. Thus, the railroads find a large pane of what is, in fact, no more than s reasonable recurn on their investment treated as excess profits and subjected to 20 enormous excess profits tax, where in fact 00 excess profits exist. °

The effect oa the railroads of the so-called

Souad public policy not only justifies but

should require the accumulation by the

railroads of large post-war reserves to meer

Government is heading them slong the same ‘unfortunate path as at the close of the last waz, when the nailroads had to borrow large sums of money and go into debt to revamp their properties. :

Today, while the railroads are doing the

largest business in their history, it would be

sdvantageous not only to them, but also to the public az large and to nilroad employes as 8 whole, if the ux hws were amended 50 as to permit the crestion now of the reserves oeeded for post-war rehabilition, with resulting greater employment in the post wir period.

: FUNDED DEBT

The Pennsylvania Railroad System bas retired or purchased during the year debt in the hands of the public amounting to $43,334,220, which, after allowing for the issusnce of $12,240,000 Equipment Trust Obligations, makes a net reduction in debt of System Companies in the hands of the public of $33,114,220.

During the last five years, there has beens

net reduction of $124,000,000 in the debt -

of the System in the hands of the public.

STOCKHOLDERS : __The Capital Stock of the Company at the

"close of the year was owned by 209,618

stockholders, an increase of 3,653 compared with December 31, 1942, with sa avenge bolding of 62.8 shares.

holders, the employes and the public genenlly, informed ss to the Company's business, service, finances and other im-

THE EMPLOYES

The Board takes pleasure in acknowledging the continned efficiency and loyalty of the wnyloyes, Which made pousible the funding of « volume uf waiBe mxomging vat of suy

_ yeat in the history of the Company.

44,448 employes of the System have entered the Armed Forces, serving in every part of the world, of whom 123 have made the supreme sacrifice. Many thousands of new employes have had to be trained to take their places, including 21,730 women who are now in the railroad service. Never were the demands upon the employes 0 great; never have they met the burden more efficiently sad more courageously.

M. W. CLEMENT, Presidens

OPERATING RESULTS,

HT AXESH

PER DOLLAR OF OPERATING REVENUE

30 18.4 cents Out Of each revenue, the equivalent 27.4% upon the tat poack, or $1572 Jor Share, 44 {acing per share over As » resus of heavy increase in taxes, the

a leis than fa Ne Income of the Comptny wii Jess sa chon i Bh

W WAGES AND Taxes EF

MILLIONS OF DOLLARS 8 - mm

REDUCTION IN SYSTEM DEBI 9 IN HANDS OF PUBLIC

TIVE YEAR REDUCTION (195.1943) $124000.000 0

$33,114,000 ,

CCHTHLCTTEY

SUTTER of 1

oet the

Comparison with 1942

Operating Revenues se 9 00 0 000 a ue eee ees $97977315 I $141,298,532 Operating Expenses « o o 0 o 0 0 0 0 o 0 ¢ 0 0 ¢o 0 ¢ 663,510,711 I 109,369,984 NetRevenus « « ¢ os 0 0 ¢ 0 0 0 00 v0 0 0 0 0 0 on 316262,444 I 31,928,548 | TaXeS + ¢ so ¢ 0 0 0s 00 060 00 00 ae aoe ov - 180,405,491 1 _. 55,826,689 A 8 0 ° 9 0 "8 0 9 "PB 0 0 135,856,953 23,898,141 Hire of Equipment 34 aia Recllity Rents , es ev eee 8,310,542 D 6,166,208 Net Raitwip Operating Income *. 0 5 °° 0 0 127,546,411 D 17.73 1,933 ds sad interen on 42,303,518 ST L,406,% "8 8" ss 8 $8 + vos 8 8B ODN '» i y Gross Income a ® oe paid 5" "8 ee ad e. ® oo le 170, 9.929 i 1 25,296 Fixed Charges, chiefly rentals to leased roads, interest on of : the Company's BEBE: oie a eww . 8 “ee 31,445 Bo D. . 274,987 NetIncome . . « eA eee hee ee 0 ° 85,418,484 D 16,050,309 to Sinking Janda es 8 0 0 0 0 0 1,924,119 D 794,112 of matured Debt—Penna. R. 2 2 4 0 9 a. 17,311,000 D 13,069,000 Dots vot factuds $28,423/01 of mereed dee it ined tn : Dividend of 3% ($2.30 per share) «se 0 8 0 0 eB se ea 32,919,385 ; : Transferred to creditof Profitand Loss + « o ¢ 0 os 0 0 ¢ 3,263,598 D Hshist

THE PENNSYLVAN IA RAILROAD

: Serving the Nation

: wy UMTED STATES war SONDS "AND STAMPS

BARUCH REPORT!

Money Changers Would Win Peace, Secretary of Farm Group Says.

WASHINGTON, March 2 (U, P). —The National Farmers Union to-| day denounced the recommenda- | tions of the Baruch report on de-| mobilization as a “trickle-down! philosophy” which would lead to “a peace won by the money |changers.” 3% |

ident Roosevelt, James G. Patton, union secretary, said the recommendations meant the nation was heading back to “Harding normalcy” with the government turning “over to monopolies the lion's share of $15,000,000,000 in war

plus materials, | Patton also condemned the appointment of William L. Clayton as surplus property administrator and Brig. Gen. Frank T. Hines as reemployment director. * “Together (with the report)” he said, “they spell bad news for the public interest. “They will prohibit government operations such as the Tennessee Valley Authority and other government ‘yardstick’ operations despite | the historical fact that you are the author of the yardstick idea. “They offer farmers nothing, and to labor not jobs but only an em- | ployment service. Wt Who believed this is a peoples’ war for a peoples’ | ‘peace now see the peace being won by the money-changers.”

P).~Cpl. Norman Le Blanc re-

In a telegram addressed to Pres-i|

plants and $50,000,000,000 in sur-|}.

REV. RAY E. CARR | AT CHRIST CHURCH.

The Rev. Ray Everett Carr of Chicago told the noonday congre- | gation in Christ church today that our nation has been running for al long time on the spiritual momen- | tum which was generated by its | founders. “Now, after several generations | of religious neglect, the machinery is beginning to slow down,” he said. “The moral condition of the world today is a direct result of the religious indifference which one notes everywhere,” The Rev. Mr, Carr! will preach tomorrow on “The Vir-; tue of Impatience.”

COACH SEARS HERE

Marine Pfc. Ray Sears, former Butler university track coach, will return -to the San Diego, Cal,

ON MARINE FURLOUGH

marine base tomorrow after spending a furlough here with his wife, 3020 S. Pennsylvania st. Pfc. Sears is track coach and assigned to the recreation depart-

Mother Wounded’ 5 a in the an Lr i By Soldier's Hug | *a se his moner vis

'SAUGUS, Mass, March 2 (U. |

ner renee op

ALL-WOOL

Other Gabardine Slacks . . o .

ALL-WOOL GLEN

a zest to living. Featured in grays and tans.

Other Glen Plaid Slacks + + +

ment at the marine base.

“TOMORROW mw...

itt Three

a ———————————

Full Size Bed. ........ Four Drawer Chest. ... Beautiful Vanity...... Vanity Bench... Coil Bed Spring....... and Mattress.........

H -H-H—~We're whis- : this—not shouting (3 only) _ CHROME Breakfast sets

Entire Bedroom Outfit

All Six Pieces

534%

SPORT

GABARDINE

* Gabardine is a fine fabric for separate or contrasting wear. With. 4 a Sport Coat they're at their best. Browns, tans and off- shades.

PLAID Glen plaids look well with plain or herringbone sport coats, Yay add

SPRING

COATS

17s

We have a large assortment of fine

sports coats, just right for SPRING.

Fresh and sparkling, they're featured

in herringbones, glen plaids, plains

and stripes. Tans, grays, browns and

—heathers,—

SLACKS

5.95

SLACKS

. 5.95

COLONIAL * Where Luality Higher than Aiee”

ONLY, $94.95

BASEMENT

Store

FEATURE

Typical of the Yajues 3 yQu may expect tomorrow 2 any other

Lp Store—Purniture, Home Furnishings — Bedding— Floor Coverings.

This is a handsome WALNUT veneered Bedroom Suite—similar to cut—Full-size Bed (waterfall design)—Big Roomy Chest—

Glorious Vanity—Bench as shown—Comfortable Mattress and Coil Spring. You get ALL SIX pieces—the entire outfit—Bedroom Suite with Spring and Mattress INCLUDED--for only $94.95 tomorrow or Saturday. GENEROUS TERMS.

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