The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-11-15
RAILROAD news
Cost $50 q Mile More to Operate
in 1912 Than in 1911.
Net Revenues Increased S23 a
Mile-Operating, $50.
ECONOMICAL IN THE WEST
Only Group in Country to Cut
Down Expenses.
Other Items of Interest in the
Traffic World.

The COMPLIED reports of 80 per cent
Of American railroads show that their
oueration for the year ending June
40. 1912. cost $50 a mile more than II
did for the year previous In other
words. while the net operating reve-
nues for these roads increased SZS
mile in the 1912 year, their net operat-
ing expenses increased $S3.
These roads, comprising an aggre-
gate mileage of 219,137, showed on
June so, 1912, total revenues from OPP
Grafton for the year of $2,761, 721,O94'
an average, it viii be seen. OF S12.6O3
per mile; their total operating expenses
were $1,90S.176,452, or SS,70S per
mile. That left a net operating reve-
nue. Of $S5S, 544,642, or S3,9S5 mile
This net revenue, IL must be remem-
beFed, represents gross income before
any deduction is made for taxes, rent
ais, interest on bonds, appropriations
for betterments or dividends IN TINS
connection it may be said that taxes
are steadily on the increase. For the
month Of June, this year, they amount
ed to $1O,379, TAG, or SAT a mile, an in
crease of 1875 per cent over June Of
1911
It would appear from these figures
that, while, owing to the natural en-
1argement in volume of traffic, the raj
roads of the country have ezS1ed Iarg-
er revenues. they have not shared n
the net prosperity on the whole as
much as they should They have had
to meet increased costs of operation on
every hand. All the materials and
equipment necessary to their business
continue TO advance in price and labor
may be included in the list The roads
on the other hand, have not been per
mitted to increase their rates as
means of meeting this general advance
The consequence. therefore, has been
that while operating revenues have
gone up $23 per mile over the last
year. operating expenses nave IN
creased $50 per mile, making a de-
crease in net revenues of $50 a mile,
an enormous sum- Coupled with this
is still another increase Of SAT a mile
in taxes. which, taken with q smaller
net revenue from outside operations, |
such as boat and ferry lines, electric
railways and dining and chair cars. re-
suited in diminished operating reve- |
nue. of s11 per mile for the year.
Some interesting facts are further
groups of railroads In the east oper- |
ating revenues increased S4S3 mile /
There were increases in all accounts, |
the largest being in freight revenue |
which amounted to 1857 mile. The
total operating expenses in the east /
ern group amounted to s249 a mile /
In the southern group the total op-
Grating revenues advanced 1851 a mile /
and operating expenses S43S. The net 1
operating revenue in this section de- |
creased SITS a mile, or 81 per cent. /
This was the largest decrease actually /
and proportionately Of all the various /
groups.
The western group was the only one /
to show an actual falling off in op- |
Grating revenue. It decreased 1927 /
mile. or "a per cent, and this was due
chiefly, to the diminished volume of !
freight hauled. But the western
group was also alone in the ability to
cut operating expenses lower than
they had been in 1911. These EXPENSES
were reduced $40 a mile. or 13 per
cent. due to the reduction in all ac-
counts except traffic. The decrease in
the operating income of the western
group of roads as compared with 1911
was s192 per mile or SO per cent.