The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-09-19
RAILROAD EARNINGS.

The New York Journal Of Commerce
has the following comment on the rail-
road earnings Of the present year:
For the first half of this year the
railroad earnings both gross and net
tell on as compared with the first half
or 1910, and the net earnings were not
quite 20 per cent Of the gross; for the
nrst six months of the earlier year they
were trifle more than 80 per cent of
the gross.
Neither OF these percentages is salts
factory. The net earnings should be
one-third Of the gross, or little more
than that, to make the financial situa-
ton comfortable for the railroads. In
some previous periods the net earnings
have been considerably more than one
third and when the Interstate Com
merce commission ordered the trans
continental lines to reduce their
charges to points between the Missouri
river territory and the Pacific coast
the Pacific group Of railroads. as class
'lned oy The Commercial and Financial
,Chronicle--were netting about az mar
cent OF their gross earnings. But such
ngures indicate abnormal prosperitv
y cannot De expected that ii viii con-
tinue indefinitely.
The railroad managers are prone to
hoio the action Of congress, or the
state legislatures, or an unfriendIy
pubic sentiment, or the mandates of
the interstate Commerce commission.
responsible for the unsatisfactory earn
lngs, and If the commission had per-
mitted the increase OF charges that
was sought last year the results might
nave been more favorable But this Is
not quite certain; there might have
Deem less business. There were elab-
crate efforts to prove that the increas-
ca rates would have been inappreci-
able but II generally happens In mer-
chandise and not infrequently in trans
portatton, that a small increase or de-
crease In price has a considerable ef-
xect upon consumption.
The railroad companies are very
much in the habit of representing
themselves as the victims of popular
prejudice and hostile legislation. But |
comparison of the railroad earnings
with the evidences of the volume ana |
pronts OF general business win satisfy |
anyone that the railroads have nor |
been suffering from persecution. hut
from dullness of trade that has az |
xected commerce In nearly every form |
The decrease in gross earnings In tina
first six months Of this year compared |
with last is only ale per cent. we
venture TO say that large proportion |
or the merchants and the nnanufactur. |
Iers OF the country found their rross |
earnings in the first half of thia wear
more than ale per cent less than last |
The loss in gross earnings for six |
months is smaller percentages than
the loss in bank clearings during the /
same period. Bank clearings In Aua-J
ust were larger than a year ago. ana |
from the last week OF June on the rail-
road gross earnings have been larger /
iSnan last year. The general fact ia |
Ithat the railroads are not suffering /
xroEn oppressive legislation bur iron,
trade conditions that have affected ali
business, and they have scarcely SUP
Tered as much as merchandising and 1
manufactures. Prices have very wtde-
~ neen lower this year than last. and
y with declining prices and higher
freight rates shipments had not been
curfa1led and gross earnings atfil
xnrfner reduced, 1t would have been
rather singular.
u must also be remembered that
while governmental action has limited
the charges for railroad services. II has
also protected the railroads from three
forms of waste and extortion we hear
little o. this from railroad managers.
put the subject il not unimportant. Ii
may be impossible TO tell how much the
prouatscuoua free pass system cost the
railroads, but as every man influential
y politics, stats ana national. was
xepf with his pockets stuffed with
oaaaeas the amount oil free Transports
ion axforked from the railroads must
lave beer substantial The railroads
ould probably tell exactly what re-
'mtea cost them. but they will non. and
cry rarely do they make any racogna- /
lon ok fhe yalsae 0k fho rebate law ID !
han The slighfin9 recognition that