New-York tribune., 1908-03-24
RECOVER FROM PANIC
BUSINESS IMPROVING.
Commissioner Lane Tells of Railroad
and Industrial Situation.

sion. These reports are to the effect that while
the railroads suffered to some extent by what -
called the October panic the loss was by no
means so serious as has generally been sup
posed.
1t appears from the reports that the effect
was felt particularly by the lines In the Eastern
and Southeastern parts of the country few Of
which were embarrassed not only by falling
off of revenues but by their inability TO obtain
ready cash with which to carry on improve
ments which they had begun. while the West
ern and transcontinentaI roads have not suf-
fered materially from the financial depression
The figures collected by the Interstate Com
merce Commission also indicate that the gen.
era1 condition of business is improving materi-
ally. with a prospect that il will soon be nor
NAL or better.
Franklin X Lane the Pacific Coast member
of the Interstate Commerce Commission. has
made careful analysis OF the figures submitted
by the railroads to the commission Mr. Lane
WIS asked what loss the railroads had sus-
| tanned from the October panic" He replied
that the railroad situation the country is
not serious at present
RAILROADS NOT IN JEOPARDY
There are no figures accessible BY which
definite answer to your question be given
said the Commissioner. From the figures avail
| able to the commission. however. it does not
| revenues of the railroads have fallen of to the
extent that generally IS believed The Inter-
state Commerce Commission now calls upon the
| carriers subject to the act TO regllate com
merce for monthly reports Of their revenues
| and operating expenses. Such reports began
| with the month of July last. and I have the
| figures compiled by Professor Henry c. Adams.
| our statistiCian, to a number OF systems
| which may be taken representative Of the
| railroad systems Of the entire country. These
| systems the New York. New Haven & Hart
| ford. New York Central. Baltimore & Ohio.
| Pennsylvania. east and west OF Pittsburg:
\ Southern Railway. Louisville & Nashville. Rock
Island. Atchison. Topeka & Santa Fe. Chicago
| Milwaukee & St Paul. Northwestern. Southern
| Pacific. Great Northern and Northern Pacific
| During the three months OF July. August and
/ September the total operating revenues of these
| roads amounted to S3990O for the panic
months of October. November and December
| the total revenue S376.O0O.OOO- The freight
| revenues of the systems named were for the
| first quarter. S264 100000. and for the second
| quarter S259.O0OOOO The freight revenues for
| November were larger than those for July or
September. These systems during the last six
| months of 1907 received from passenger and
| freight revenues a grand total Of S175 50sattsrn-
! which is S54.OO0.0o0 more than they received
for the period in the preceding year. 1906.
and their net income from operation in 1907
S14,0O0.O0o more than in 1906 These figures
certainly do not Indicate that. either owing
| legislation the panic. the railroads of the
| country as whole have been put IN financial
| jeopardy. 1t is true that during 1901 there
| great increase in operating expenses. owing
\ TO general increases in wages. out. allowing for
| such increase. the larger volume Of traffic and
| greater revenue derived therefrom yielded
| larger net return TO the railroads.
| THE TRANSCOSTISESTaI LINES
a study of these figures shows that the
| panic so far as il affected the railroads.
| tended but slightly beyond Chicago toward the
| West If We take the transcontinental roads
| reaching to the Pacific Coast we find that every
! one of them increased its gross operating rev.
| enues during the last half OF the year 1897. Be
| ginning with the Great Northern. which IS near
| the Canadian border, and coming down the
Pacific Coast the Mexican border. thus includ-
| ing the Northern Pacific. the Southern Pacific
and the Santa Fe system. each one increased
/ its total operating revenues in the last half Of
| 1907 over those revenues for the last half of
| 1906. while the net income was IN some cases
| increased and in others slightly decreased. the
| net income from operation in each of these lines
| being. Santa Fe s13.0O0O 900. Northern Pacific.
S1SOOOOOO; Great Northern S13OooOOo and
| Southern Pacific S41 100000. for the six months
| Taking freight revenues alone. the santa re-
| e,-Ster for instance shows larger freight rev.
| enues in December than in July or September.
and the Southern Pacifc's December freight
revenues were but few thousand dollars less
| IN that month than in any other month except
ing October and November. We find, therefore,
no alarming condition presented as 20 the trans
| continental lines
| Coming this side of the Rocky Mountains vs
| coo that the Rock Island. Notwithstanding ths
state legislation to which il has been subjected.
| increased its revenues during the last half OF
| 1907 over those of 1906 by over S3.0OooOo. The
/ whole of its net income from operation. Slt.-
| Ooo OSO was over S1D0O.000 less than for tho
| corresponding six months OF 1896 The Chicago,
| Milwaukee & St. Paul shows decrease OF ap-
| proxinlateIy 100000 in operating revenues. and
| the Northwestern system an increase OF about
| the same amount. although the Mtlwaukees net
| income wa larger in 1907 than in 1906
| WHERE THE PANIC CENTRED
| .suovinp still further eastward into trunk Iins
| territory between Chicago and the Atlantic sea-
| hoard we discover that the New York Central.
| the Baltimore & Ohio and the Pennsylvania
| lines both east and west of Pittsburg. increased
| their total revenues for tie freight and pas
| senger traffic I'm the July-December period ot
/ 1907 over that of 19t :: and both, the New
| York Central and the Pennsylvania lines the
| net income from operation greater in 1907
| than for the corresponding period of the year
| nrevious The returns from these roads insii-
| cate however that the panic had it's centre in
| their territory. there is more notable fall
| ing off in revenues from traffic in this group
| during the panic months than on any other
| cepting the Southern roads.
| The single New England road taken
illustration the New York, New Haven & Hart