Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-19
REPORT SAID To FAVOR
DEMAND OF RAILWAYS
Summary of Income and Expenses
Cited in Support Of In
creased Rates.
House Committees Favorable Action
on Commercial Paper Proposition
Discussed-Financi Notes.
BY I. A. FLEMING.

BY I. A. FLEMING.
A summary of operating revenues,
net income and operating expenses just
issued by the interstate commerce COM
mission. is stated to be in itself one of
the strongest arguments in favor of
the claims by the railroads that they
need at least per cent raise in
freight rates.
Reports are for the fiscal year ending
June 80 1914. Since then conditions
have become less favorable, more espe-
cially with the southern roads West
ern roads have Jared much better than
eastern. At this time the resumption OF
export grain trade to France and Great
Britain should be of some help to all
lines.
Reports show an average loss OF SO
per cent in the operating revenues OF
all roads, the loss in net income
amounting to 1876 per cent.
In the eastern district losses were
1873 per cent in gross operating income
and 239 per cent In net revenues. In
the western district net income loss
was slightly in excess of 1928 per cent.
Loss, all roads, in June, was lis per
cent gross, as compared with 9.6 per
cent average loss Tor the year. LOSS in
net for June, 9.S per cent, compared
But the Improvements predicted by
June figures have not materilized,
owing to the worlds disturbance.
Increase in Expenses.
The steady increase in operating ex-
penses is one of the main causes for
the decreases in net earnings. Higher
wages and higher cost of material are
important factors.
Perhaps the experience of the Maine
Central Railroad Company may be
taken as an indication OF the wage adj
vance, although 1t Is probably under
rather than over the western roads
wage increases. In the last ten years
Name Central has increased its wage
to employees rs per cent.
Railroads reporting today continue to
show losses in revenues of a more
less serious nature.
Chicago and Northwestern Railroad
Company earned for the fiscal year 1893
per cent on its stock as compared with
1852 per cent last year. Jersey CentrafS
operating income for July decreased
$1,569.S6.
Twenty-three railroad companies re-
porting earnings for the first week in
as compared with sS,4ss,23S for the
same week last year, the percentage
decrease being COL.
Chesapeake and Ohio Railroad COM
pany, for the second week of this month,
showed an increase in earnings of s42,-
753. and from July l a gain of S616,761,
being a particularly bright spot in the
records OF the roads.
For the second week in September
Grand Trunk system lost s47,914. and
Denver and Rio Grande lost $64,600.
Another indication of necessity for the
Increase is found in the withdrawal
&c. kI1 La,
road of $500 trains from the daily
schedule. since January l of this year.
The directors of the Commercial Ma
tional Bank have declared the regular
quarterly dividend of 2 u per cent pay
able Octol /.
New York Stock Exchange.
Various plans are under consideration
for the opening Of the New York Stock
Exchange. The chief objection to an
immediate opening is the fear of foreign
selling, and London has the same sort
of feeling regarding the opening Of the
exchange there.
One OF the best suggestions made
would call for a gradual opening. con-
filming the list to few securities each
day, until these were in safe position,
followed by daily additions to the Sc
curity list until such time as the exchange
is in full working order.
House Committees Action.
A favorable report has been ordered
by the House banking committee on
the Senate bill to extend the use of
commercial paper as a basis Of issue
of emergency currency under the new
law. The committee. however. struck
out of the bill the proposal to grant
state banks and trust companies the
emergency currency privileges accord
ed the national banks. which had been
objected to by the Treasury Depart
ment and the federal reserve board.
As adopted. the measure is amended
to provide "th-t no national banking
association shall be authorized in any
event to issue circulating notes based
on commercial paper in excess of 100
per cent of it's unimpaired capital and
surplus"
The Senate bill originally read 80
per cent. as the reserve board recon-
mended. but the intention was to make
it 80 per cent Of the total Of 125 per
cent of capital and stock
The bill is designed to help the south
and southwest, where much commerce
ia1 paper is used a securities.
Financial Notes.
General Motors Company earned 1857
per cent on common stock in 1914. as
compared with $3.50 per cent in 1913.
Bradstreet says: Brighter times in
financial and commercial circles are
coming"
Erie Railroad Company has extended
s4,550,000 notes maturing in October
for one year at 5 per cent. secured by
100000 first mortgage bonds.
It is reported that the cotton ex-
changes will open next month.
Northern New York has met the cry
of Buy bale of cotton!" with Buy
q barrel of apples"
Chicago is talking of hve-million-
dollar pool to aid the south.
1t Is estimated that the two-cent
stamp tax on checks will yield in New
York city alone s2.900,000 a year.
Postal savings deposits have increas-
ed to s4S,000,000.
Chicago reports 100000 bushels Of
corn taken for export to France
cIassed as an unusual order. Pittsburgh
reports large orders for material.
Two Illinois Conventions.
SPRINGFIELD. ILL.,, September 10
At the democratic state convention here