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Cleaned and C ^ All Work Overhauled Guaranteed Watch Crjratala, 45c U/AHE'C CREDIT TTMUC d JEWELERS 015 15th gt. N.w. TROUSERS To Match $4.95 up Odd Coat« * P EISEMAN’S—F at 7th IMDADTAMTl Slock uponSTEERO imrUniHDI I -the concentrated a I food drink to fortify //JA I the family in air raids ff I and blackouts. Hot AIR RAIDSl ■ and fatigue. B J |jjS * A | groctrs J^LjLljLU ■ 1 jotmmm I want A MARCHMONT TWO PANTS SUIT. Like They Have at FREDERICK'S 1 All Wool *28-50 I All Sizes *32-50 g All Styles *35 «« I Charge Accounte Invited ■ Capital of Democracy Shares Its Voteless Plight With Brazil Washington and Rio Both Under Thumb Of Federal Government Mr. Rogers has returned from Chile where he was one of a group of six American newspapermen who were guests of Chilean news papers. Their trip returned the visit to the United States last year of Chilean journalists. The ; interchange was arranged by United States Ambassador to Chile Claude G. Bowers. This is the fifth of a new series of articles by Mr. Rogers on South ' America. By HAROLD B. ROGERS. Neither the people of Washington nor of Rio de Janeiro, Brazil, have a vote in their respective governments, but there are striking and interest ing differences in the management of the two national capitals and of their respective nations. In the United States a democratic ! form of government grants to all its residents, except aliens, convicts, lunatics and Washingtonians, the right of suffrage. In Brazil, where formerly the people voted. President Getulio Vargas, the strong man, still holds the title of President, but is better known as a "benevolent-dic tator." He assumed national power, and in 1937 replaced the constitu tion cf 1934 with a new one. dis solved Congress and all state legis latures and municipal councils. The buildings in Rio which formerly housed the Senate and Chamber of Deputies, where elected representa tives of the people sat in democratic procedure, have been turned to other purposes. There are no more popu lar votes in Brazil. In the United States President Roosevelt appoints three District of The Pennsylvania Railroad SUMMARY OF ANNUAL REPORT FOR 1941 THE 95 th Annual Report of the Pennsylvania Railroad Company covering operations for 1941 will be presented to the stockholders at the annual meeting on Apnl 14, 1942. Operating revenues increased $136,447,755 or 28.6% over 1940. Operating expenses increased $104,' 222,597 or 30.S'T. Taxes increased $22,274,360 or 50.ST. Netfincome was $52,383,958 an increase of $ii,6oS,I2S. Surplus was $48,414,588, equal to 7.4Te ($3.68 per share) upon the outstanding Capital Stock (par $50) as compared with 5.6T ($2.80 per share) in 1940. Increases or Decreases Ov er OPERATING RESULTS 1941 1910 Total Operating Revenues Were. $614,041,163 I $136,447,755 i Total Operating Expenses Were. 441.677,275 I 104.111.597 Leaving Net Revenue From Railway Ottrations oe. 171,363,888 I 31,1151158 Taxes Amounted to.. 66,159,*48 I 11,174,360 Hire of Equipment and Joint Facility Rents Were. . S.ipi.Sxi P 611.134 •Leaving Net Railway Operating Income of . .... 97,101,488 I 10,603,002 Income From Investment! and Other Sources Was. . * 41.663,095 I_361,787 1 Making Gross Income of. 138,765,583 I 10,968,789 Fixed Ch arges, Chiefly Rental* Paid to Leased Roads, and Interest on the Comeany’s Debt. 86.381.61x P 639,339 .Leaving Net Income oe.- $1,383.958 I 11,608,118 A PEROT Rl AT IONS TO SINKING AND OTHER FUNDS, FTC . . .. 3,960.370 I_9°.*°5 Surplus. $ 48,414.588 I $ 11,517,91} •Includes dividend of $5,000,000 (par value) in securities received from Pennsylvania Co. Dividends aggregating 4% ($2.00 per share) were paid during 1941, compared with 3% ($1.50 per share) in 1940. THE NATIONAL EMERGENCY The railroads have again demonstrated their capacity and ability, under private management, to meet successfully and com pletely the demands made upon them by the National Emergency. The efficient per formance has been well recognized. During 1941 the freight traffic was greater than any previous year in their history and the passenger traffic was greater than any year since 1929. Although the owner ship of freight cars was 600,000, or 26% less than in 1929, with a greater capacity of ears and locomotives it was possible, continuous improvement in facilities .and operating methods, to handle this large traffic without congestion or car shortage. The railroads of the country are alert to their responsibility in the moving ot men and materials so essential to our National Def; nse The Company is participating with all its resources, including expendi tures for improvements, towards producing the maximum of transportation efficiency. FINANCE The Company's net funded debt was reduced $12.<347,970 during the past year. Equipment Trust Obligations increased J4.704.oooduetotheissuanceofJii,92t,ooo 'Fifteen-year iH% obligations, which were ’•old on a 1.744% basis to finance, in part, the cost of new equipment. This in turn •was offset by the payment of obligation* ,'samounting to $7,221,000. » The System's funded debt in the hands of the public was reduced almost $jo,ooc,ooo through securities retired at maturity, bonds redeemed through sinking funds, and b" •• acquired by System Companies. EQUIPMENT To meet the requirements of Nati: .1 Defense new equipment placed in service t during 1941 included 4954 freight carrying ’ ears, joo cabin cars, 3 locomotives, 41 large capacity tenders, 668 freight containers, 4 ■ passenger coaches, 3 car floats and 1 tug boat. In addition no passenger train cars were remodeled. On order at the end of the year were 6,91a freight carrying cars, iyo cabin cars, 13 locomotives, 16 large capacity tenders, 14 passenger coaches, to car floats, '*ty barges, 10 lighters, 1 tug boat and 1 track sweeper. Capital expenditures were also made foe additions to, and betterments of, roadway, structures and equipment, many of which were necessary in connection with National Defense. In the 11 year period ended December ji, 1941, in addition to new and improved types of passenger coaches and dining cars, and remodeling and air-conditioni#g of ' passenger train equipment, more than 33,000 new freight cars and 336 locomotivea of the most efficient type and advanced design were placed in service. There was also ex pended nearly $670,000,000 for additions and betterments to equipment, roadway, structures, and other facilities in the in terest of improved service to the public. This program_ of additions and better ments is indicative of the Company's efforts to be prepared ^0 meet the defense needs of the country. PASSENGER SERVICE During the year, passenger services were further improved and three entirely new trains were added: (i)“The Jeffersonian", an all coach train operating between St. Louis and New York on a 00H hour sched ule; (1) "The Patriot", operating between Washington, Baltimore, Philadelphia, New York, and Boston, with modern coaches, dining and lounge cars, and pullman sleep ers, on an 8 hour, 40 minute schedule, the fastest service ever provided between Washington and Boston; and (3) "The Pennsylvanian'", between Chicago and New York, affording the latest evening departure fro~. Chicago with morning arrival at PI * Jelphia, New York, Baltimore and Washington. In cooperation with it* connections and other railroads in the Chicago-Flonda pas senger field, the Company participated in a comprehensive plan for full coordination of fast passenger service between Chicago and various parts of Flonda, effective December 17, 1941, which resulted in sub stantial operating economies while at the same time affording 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 tram service were also effected, including further quickening of schedule* of several through trains between the East snd the West. WAGES 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 a result of which the basic rates of pay of certain employes were increased cents per hour and 10 cent* per how for others, with certain additional concessions for paid vacations. On the basis of 1941 payrolls, the increased cost to the Company per annum is $38,000,000. FREIGHT AND PASSENGER RATES In addition to the wage increases which involved an increase of approximately $331,000,000 per annum in the operating' cost of the railroads, the railroads antici pated, with the war on, increase* in other expenses which would not be taken care of by the probable increase in volume. Thus, unless increased rates could be ob tained, the railroad's 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 lj, 1941, for authority to increase freight and pas senger rates, other than the special rates provided for the military and naval force* of the United States travelling on furlough. Hearings have been held in this proceed ing The Commission on January ai, 104?, authorized an increase in paste:—r f res; and on March a, J941, author:' * ’ t increase in freight rates. TAXES Taxes amounted to $66,159,546, 11 in crease of $11,174,560, or 40.8%. Of this $18,648,885 was chiefly due to larger in come and higher Federal Income tax rate. Higher payrolls resulted in an increase of $1,811,474 in Unemployment Insurance taies, while Railroad Retirement taxes in creased $i,8ij,ooi. All taxes require about 10.8 cents out of each dollar of operating revenue, equivalent to 10 t% ($5.04 per share, an increase of $1.69 per share) upon the capital stock. The railroads 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, at the close of the year, was owned by 105,01* stockholders, the average bolding being 64 shares. Information concerning the Com pany and its activities will be furnished stockholders upon request and constructive suggestions respecting the Company or its service are always appreciated and receive careful consideration. The Board takes pleasure in acknowledging the continued efficiency ' and loyalty of all the employes during this period of great national stress. > We know that they will continue to do their full share in meeting the additional heavy responsibilities that have now been placed upon them. * M. W. CLEMENT, President The Pennsylvania Railroad SHIP AND TRAVEL VIA PENNSYLVANIA Stockholders can ebtam eoptet of the Annual Report from J. Taney Willed, Secretary, Brood Street Station Budding, Philadelphia, Pa. Columbia Commissioners ‘‘by and with the advice and consent of the Senate." In Brazil President Vargas appoints his prefect, or mayor, with out the consent of any elected Senate. Both Federal Districts. In both Washington and in Rio the seat of the national government is known as a ‘‘federal district.” Both are under the direct control of their national governments, and are administered principally by the Chief Executive and appointed function aries. In Washingon Congress controls appropriations for city expenditures. In Washington President Roose velt's critics sometimes refer to him as a "dictator," because of his greatly increased powers, but he still operates under the fronts of a demo cratic government. In Rio, Vargas still is called the "President" of Brazil, although referred to mostly by foreigners as a dictator. When Brazilians are asked about this they admit—softly—that if he is a dic tator, he is a “benevolent" one. In talking with both Brazilians and Americans who have been there for a long time, it was found that all admit that the Brazilian President has accomplished much for his country, for the good of the people, especially the underprivileged, and that he has done great things for the capital city of Brazil. In pushing through some city im provements, it is admitted, he has exercised a strong hand at times and some people have objected, but the results, it is admitted, have t>een for the benefit of the public—especially in movements for the reconstruction of the federal district. As chief executive of the nation, he rules by "decree.” He has a powerful "financial and economic council." sometimes called the federal council, which helps direct the financial and economic life of t.he nation. The President appoints this council. People Appear Happy. The government of the federal district, as seat of the Brazilian government, is a close combination of national and local management. President Vargas appointed as "pre fect'’ or mayor of Rio Henrique Dodsworth, who has been a suc cessful administrator, so far as could be learned by this correspondent during a few days stay in Rio The city was clean, orderly, ana the peo ple. even the laborers, appeared a happy lot. Many of the public services of the city are paid for by the national treasury. The administration of the federal district is under direct con trol of the prefect and through the general secretaries of the munici pality. Rio. however, always has been un der the strong guidance and control of the national government of Bra zil. which has taken a great pride in the seat of government. This was reported by Theodore W. Noyes, editor of The Star, when he visited Rio many years ago. He held up Rio as an example to Washington in the matter of city building and beautification. At that time the people of Rio voted in national and local elections. I found the same spirit of pride in the great national capital of Brazil now. As one Rio resident ex plained: "It is the ambition of every Brazilian to come to his national capital, the most beautiful city in the world. The people of the coun try take great pride in Rio de Jan eiro and as a nation have spent great sums in its beautification and development. So much has been spent by the federal government in Rio that occasionally one hears murmurs that maybe too much is be ing spent in Rio. But these mur murs are not serious.” Budget of 547,506 Contos. The 1942 budget for the federal district of Brazil, approved by Pres ident Vargas in signing a “decree law.” showed income of 547.610 con tos. a conto being 1,000.000 reis. Ex penditures for the federal district were estimated at 547.506 contos, thus leaving a small credit balance, according to an analysis of the budget by the American Chamber of Commerce for Brazil in its latest bulletin. These funds for the federal dis trict comparp with the federal budg et for Brazil as a nation, of esti mated receipts of 4 388.756 contos and expenditures of more than 5.026 076, leaving a deficit cf about 637.000 contos. Among the principal agencies for which the budget was approved are the presidency, the department of public works, press and propaganda department, Institute of Geography and Statistics, Defense Commission of National Economy, special com mission, Federal Council of Foreign Commerce, Immigration and Coloni zation Council, National Council of Water and Electric Power, National Petroleum Council, National Secur ity Council and the ministries of aeronautics, agriculture, education, finance, war. justice, marine, foreign affairs, labor and communication. Tax Receipts Increased. The importance of the federal dis- 1 trict in the economy of Brazil is indicated in a report on receipt of the federal income tax, which in the first 10 months of 1941 showed sub stantial increases over the cor responding period of 1940. The two largest contributors, according to TURN YOUR QMThcpetify INTO A Tfoneu-imheti Many A Washing- X ton property Jfl I owners are W calling on ^ Kraft to bring out mod*A hom*s up-to-date! KRAFT OFFERS these I TIMELY IMPROVEMENTS KRAFT experts cap convert old houses Into smart, mod ern Apartments—thus help ing property owners to take advantage of the tremen dous rental opportunities brought about by the Influx of thousands of new Wash ingtonians every month. The Government’s Defense Program provides you a golden opportunity — is YOUR property eouipped to | take advantage of it? If not. call DIst. 6000 or. better •fill come In and see us I one official report, were Sao Paulo (the Chicago district of Brazil), with 156,143 cantos, and the federal district, with 141,342 contos. This is of special interest to Washingtonians, who have been contending for many years that the importance of the District of Co lumbia is substantially indicated by its heavy contribution in income taxes to the Federal Treasury of the United States. This week in Washington thousands of taxpayers are filing their United States income tax returns, due next Monday mid night. In Brazil, the people of the fed eral district are accorded the same kind of privileges as Brazilians throughout the country, none of whom can vote. But in the United States, the people of the Federal District are discriminated against by being deprived of the vote, while nearly all the rest of the American people have the right of suffrage. Connaught Estate $602,708 LONDON, March 12 t/P).—'The Duke of Connaught, son of Queen Victoria, who died last January 16, left an estate valued at £150.677 • $602,708), it was announced today. Hotel Sales Managers Elect Roberts President Osgood Roberts, director of public relations at the Mayflower Hotel, yesterday was elected president of the Hotel Sales Managers’ Associa tion at its 15th annual convention in Cincinnati. Mr. Roberts is one of more than 300 owners, operators and sales man agers of the country’s leading hotels meeting on the theme of "Sizing Up Wartime Sales Problems." Howard Dugan, vice president of the Hotels Statler Co., was program chairman, the post Mr. Roberts held last year. Mr. Roberts is a former newspa perman and has been associated with the hotel for 12 years. Rugs-Carpets Remnants Lowest Prices—Open Evenings WOODRIDGE RUG & CARPET CO., INC. 1715 Rhode Island Ave. N E. Telephone—Hobart 8200 Rectal Soreness Gat Raliaf Naw Easy Way — Sit In Comfort Don't neglect Itchy raw broken apota around rectum. Few places are ao liable to infection. A quick dependable reliever of rectal sore neaa la Pro-lar-mon Rectal. Brings soothing sense of comfort upon contact, forms pro tecting film over sor* area, helps destroy infections germs, aids Nature heal up raw, broken tissues. Nooil—no grease to stain cloth ing. Bold on money back guarantee. Get this modern relief today...ask for PROLARMON RECTAL AT LIGGETT DRUG STORES fralan—n. lac, Chicago, 111, Pisa. TAKE UP TO 18 MONTHS TO PAY Leonard Electric Refrigerator 1 TTlIl^i Plus Small Carrying Charge! A big 5 cu. ft. refri gerator fully recon ditioned and serv iced for years of satisfaction. Spa cious interior — large freezing chamber. I p to 18 months to Pay Spotlight Special! TALES •Your Choice S |.«» Your choice of several different styles all grouped to go at one low price. Cocktail tables, end tables, lamp tables, nite tables, console tables. Walnut and ma hogany. Many others beside those pictured here. Easy Terms! BUY Defense Bonds and Stamps 7-Piece Modern Bedroom Ensemble A pleasing modern design in richly-blended genuine wal nut veneers on hardwood. Dresser or vanity, chest of drawers, full size bed, Simmons coil spring, mattress and pair of leather pillows. Box Spring and Mattress on Legs $29*®'* Carefully tailored innerspring mattress with resilient inner coil unit, complete with matching box spring on six sturdy legs. Twin size only. Electric Heater S5.88 Large Crystone cabinet with chrome reflector. Powerful heating element. Chest of Drawers SJO-38 Well constructed of hardwood and nicely finished. Has three conveni ent drawers. Occasional Chair $7.95 A pleas in* new dtsiirn with fclfh channel back. Walnut finished frame. Beach Cart $]|'95 Durable leather fabrie body with • tltehed aide*. Sturdy feldinr steel running rear. 10-Piece Living Room Ensemble A new semi-modem design with tufted back and broad panel arms. Sofa and matching lounge chair, complete with kneehole desk and chair, coffee table, end table, floor and table lamp, mirror and smoker. Evening Appointments Arranged, Phone Miss Adams, MEt. 5420, Before 5 P.M.