The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-11-11
RAIL WAY LOSSES
SHOWN ARE HUGE
United States Lines Gross
Earnings for Year Drop
$780, 600, 900.
APPEAL ON FINES HEARD.
FEDERAL COURT CONSIDERS AR
GUMENTS PERTAINING TO
SAFETY APPLIANCE LAW
RAILWAYS CONVENTIONS.

Chicago, ILL.,, Nov. II Gross earn
ings of the railroads of the United
States decreased by the imme nse sum
of $139 100000 during the fiscal year
ended June 80, 1908, according to fig
ures compiled by Slason Thompson,
manager of the bureau of railway
news and statistics, from the month
Iy reports of the roads to the inter
state commerce commission. The re-
suits of Mr.. Thompson's compilation
are included In circular just issued
from his office which shows how ser
fously the revenues of the railroads
were affected by the recent business
depression in all lines of activity.
According to his figures during the
last fiscal year, the gross earnings
were $2,450, 100000, with a mileage OF
100000 or $10,652 per mile. For the
year ended June 80, 1907, with mile
age of 227,454 the gross earnings
were $2.5S9, 105,57S or 1888 per mile.
The annual statistics of the commits
sion have not yet been prepared.
''As the operating expenses for 1908
approximately $1,729,000,000) will
not fall more than $20,000.000 below
those OF 1907" says Mr.. Thompson,
1.-THE official returns for the year just
closed will show loss OF s120.000,000
in net earnings from operation as
compared with 1907.
Concealed behind these figures"
he continues, (which will become i'm
bedded in official statistics to render
future comparisons with the year 1908
misleading. if not valueless. lies the
fact that the decrease in railway rev.
enues coincident with the panic of
1907 averaged over $50,000.000 a
month and was equivalent to $780,
100000 a year.
Figures Show Business Collapse.
The cause of this discrepancy be-
tween the railway statistics of the
panic year 1907-190S and the truth as
to the slump in operating revenues
during that year Is due to the fact
that the fiscal year included four of
the most prosperous months in the
history of American railways. Happi-
ly the monthly reports of the inter-
state commerce commission afford
the data by which we are enabled to
separate the fat from the lean
months. These show that the gross
earnings of the railways during the
first four months of the year proceed
ing the collapse of business were
$955.351, 156, against $747,939.6 500 for
the second third of the year and $715,-
100000 for the last third.
Here is shown drop of 1907. 417,.
556 on the first four months earnings
after the panic and of $239,951 ,243 on
the second four months. making : to-
tai loss OF $447.36S,79s on eight
months earnings from the level of the
preceding four months. The recession
of railway revenues, which began to
be noticeable in comparative returns
as early as August, 1907, did not reach
the point where a decrease below
those of 1906 was recorded until the
second week In November, 1904
condition which justifies the use OF
the level of July, August, September
and October in the above statement
1T is estimated that the earnings OF
the 5000 miles of railway not covered
by the monthly reports to the inter
state commerce commission will bring
the total earnings for 1908 up to ap
proximately $2,45O, 100000"
Hear Safety Law Arguments.
Judges Grosscup. Seaman and Bak
er of the United States circuit court
OF appeals heard arguments yesterday
on the appeal Of four railway compan
les from fines imposed by District
court judges for violations of the fed
eral safety appliance law. The roads
are the Wabash, fined by Judge Hum
phrey for alleged failure to properl,
equip locomotive with safety appli
ances: Elgin, Joliet and Eastern fined
by Judge Bethea for failure to pro
vide a car with automatic couplers
the Santa Fee fined by Judge Bethes
for similar case and the Belt rail
way, fined by Judge Lands for failure
to equip 10 per cent of the cars In
a train with power brakes.
The Importance of the cases hinge.
upon the contentious of the railway.
that congress has no power to regu
late the equipment of cars and loco
motives. except where they are actual
ly engaged in Interstate commerce.