The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-01
Net for February Decreases "a
Per Cent. From Last Year,
and Gross Is Per Cent.
SHOWS DISTRESS Is REAL
Financiers Point to Report as
Clinching Argument for
Federal Aid.

The distress Of the railroads is set forth
in the report of the Pennsylvanias Feb
ruary earnings. published to-day. which
shows that during February and In the
first two months of this calendar year
the big system earned far short Of the
proportion OF dividend and fixed charges
for these periods.
Net earnings for February decreased
Is per cent. from those OF the same period
last year. Net earnings for the first two
months of the year were 81 per cent.
less.
II the same rate OF decrease continues
throughout the year. 1t was pointed out
the system will fall at least 5000, 900
behind its SIS. zoo. 900 dividend require
ments. and its appropriations for addi-
tons and betterments for which last year
1t spent Sl3.o00.Ooo. II Is not to be ex-
pected. owing to drastic ,economice. that
this same rate OF decrease will continue
II Is fair to suppose also, said railroad
men. that earnings will show smaller
decreaie In more favorable periods of the
year
But the Pennsylvania report was pointed
to as = fair warning OF tire disastrous
results for the railroads II they do not
get help.
Tho Pcnnsyvania report was q pitiable
showing. IN tho opinion Of financial rail
road experts. and It's figures astounded
those who analysed them
Tho most striking fact revealed was
the manner In which operating expenses
had consumed all but the merest triie
OF gross earnings
For all the lines east and west OF
Plttsburg the report showed that Febru-
airy produced the meagre net operating
revenue Of ss45.2s7 on volume OF bust
ness OF s24.3l02os. This represents a
loss Of Is per cent. In gross earnings and
10 per cent. in net. In other words, oper
ating expenses OF SEA. 4s4.941 ate up 81
per cent. OF gross earnings for the month.
shows Distress IL Real.
These figures alone. said railroad nnan-
ciers should silence all charges that the
distress Of the railroads Is not real.
The net operating profit on the lines
east on Pittsburg on which the greatly
reduced gross business OF s1s,5l4oSo was
done was the insignificant amount OF
s5s2.6as. Operating expenses here con-
sumed about 9G per cent Of operating
revenue. On the lines west OF Pittsburg
the net income was only $262,63l on a
gross OF s'.7s5.226.
Roads May Lose 100000, 900.
Calculations made by railroad experts
based on the returns OF the large roads
TO the Interstate Commerce Commiss on
for the six months preceding December
81. placed the probable loss OF the rail
roads OF the country for the fiscal year
in net earnings at approximately $780,
900. 900. This IL modest figure based
on present returns. In the seven months
to the last " January, net earnings were
SIS. 600. 900 less than for the similar period
OF the previous yfar
In view Of these startling figures rail
road officials II was learned YESTERDAY.
are redoubling their efforts to cut down.
on the Lehigh Valley II cost e6 cents
ont OF every dollar OF earnings to operate
in February. shop hours have been re-
duced to forty five hours a week from the
normal fifty-fiv hours. The entire work
ing staff Of the road Is on "A &C per cent.
basis Of normal time.
The management Is considering applca-
ton to the public service commissions OF
New York and Pennsylvania TO he per
m!,ted TO take OF trains which were or
dered put on by these commissions. The
management will show that the road can
not afford to maintain these trains.
Chairman Trurnbull OF the Chesapeake
and Ohio said yesterday that the road
has been retrenching wherever IL could
because OF the flood losses Of last year.
the poor crops and general business de-
preston. He did not have the figures of
the number OF men laid on.
The anthracite roads are suffering par
ticulsrly this year because ~ the low
the open winter.