Annual Report

In view of the merger and consolidation, results of the operation of the Ottawa &
New York Railway are not, after January 1, 1913, included with the operations of this
company and in the following analyses and the tables upon which they are based, the
report of December 31, 1912, has been revised for purpose of comparison by eliminating
all items arising from the operation of the Ottawa & New York Railway.

For the year covered by this report the revenue from transportation was
$115,218,498.91, an increase of $6,960,749.27; revenue from operations other than trans¬
portation was $1,685,805.14, an increase of $245,966.44; revenue from auxiliary opera¬
tions (connected with, but in addition to transportation by rail) was $5,780,345.32, an
increase of $201,261.43.

Rail operating revenues showed large increases through the earlier months of the
year, the increase up to October 31, being $7,784,039.77, but November and December
revenues declined $577,342.06, reducing the increase in rail operating revenues to
$7,206,715.71 tor the entire year.

The total gross revenue from all operations was $122,684,649.37, an increase of
$7,407,977.14.

Freight revenue was $68,986,695.35, an increase of $3,996,721.30. The revenue
freight carried amounted to 55,100,277 tons, an increase of 3,265,223 tons over last year.

All five groups of classified commodities show increased tonnage carried during the
year, the largest increase being in products of mines, in which group bituminous coal
gave an increase of 2,353,416 tons (equal to 19 per cent) while anthracite coal and coke
show 370,408 tons less than in the preceding year. Products of agriculture show an
increaseof 411,099 tons, chief of which is grain with an increase of 327,690 tons. Products
of animals show an added tonnage of 126,245, generally distributed throughout the
classified list of this class of freight. Products of forests increased 196,514 tons. Manu¬
factured articles increased 250,047 tons, the only decreases being in bar and sheet metal,
iron and steel rails, pig and bloom iron and in other articles in this group not separately
classified.    Commodities not classifiable increased 115,677 tons.

The total revenue of all passenger-train transportation was $44,470,102.28, an
increase of $2,989,205.77 over the year 1912. Of this amount the revenue from express
traffic was $4,708,835.70, a decrease of $23,892.94, due to shrinkage in the volume of
business. Mail revenue was $3,017,827.93, an increase of $486,683.31 which accrued in
the last six months of the year, due to the adjustment of mail pay, based on the regular
quadrennial weighing of the mail carried which took place in the spring of 1913. This
increase is due to the normal growth of the mail matter carried since the last weighing of
the mail four years ago and in a small degree to the additional parcel post matter carried.
The remuneration to the railroad company for parcel post matter carried was based on
the limit of eleven pounds, no provision having been made as yet by Congress for com¬
pensation for the additional weights of mail carried consequent on the enlargement of the
parcel post weight limit on August 15, 1913. The situation in reference to railway mail
pay is still unsatisfactory and is unsettled, pending the report of the joint Congressional
Committee now sitting and the taking of definite action by Congress on the findings of that
committee.