Daily capital journal. (Salem, Oregon) 1903-1919, 1915-11-18
THE REVIVAL OF RAILROAD BUSINESS

Most of the discussion about railroads for long time
has been centered around their troubles Attention is
now being directed to the favorable aspects OF their
situation and many railroad officers whose chief
for years has been to reduce expenses wherever pos
sibe and sometimes where it has seemed impossible now
find their hands filled with the work of handling the bust
ness offered them says the Railway Age Gazette.
Evidence is accumuating that the tide has turned and
that general business is rapidly returning to condition
of prosperity, with good consequent effect on the well
fare of the railroads and the railroad supply industry
After long depression followed by considerable
period of uncertainty the change has come so suddenly
as to leave some doubt for time to its penanency
However, while allowance must be made for the extra
ordinary activity in certain ines such as the automobile
business and particularly for the stimulating effect of
the large orders for war materials the upward tendency
during the past month or so has been marked that
more confidence is being manifested than at any time
since the war began This confidence is reflected not only
in the statements Of bankers and other prominent bust
men regarding the rapid Improvement In general
business but in the reports OF railroad traffic and earn
ngs and the large orders for rails locomotives and
other supplies that have been placed during the past few
weeks by the railroads.
For August the railroads of the country reported an
increase in total operating of 13 per cent and
in net operating of 1912 per cent per mile This
showing made possible of course by the continuance
of the program of drastic economy Preliminary reports
from large roads operating 117734 miles compiled by the
Interstate Commerce Commission indicate increase in
total operating revenues per mile from 81 219 in Sepem
ber 1914 to 95 in September 1915 or 62 per cent and
in net operating revenues per mile from S4O8 to 1884, or
18 per cent This also represents gain in both gross
and net over September 1913 when similar compilation
by the commission showed that total operating
were 81 235 per mile and net operating revenues were
$397 per mile, and over September, 1872 when total
operating revenues 200 and net operating reven
$24 The gross earnings reports of 81 roads avail
able for October show increases of 1863 for the first week.
119S for the second and 1749 for the third 1914
Any enthusiasm aroused by comparisons with 1914 should
be tempered by recollection of the exceedingly poor
showing made in that year, but net gains compared
with both 1912 and 1913 gratifying indeed. In
September the gross earnings of the Pennsy Rail
road were $208l736l the largest in any month in
the companys history except August and October 1913
and the net earnings, $2S2021 the largest in any
month in its history
The earnings figures reinforced by the increasing
frequency OF reports OF scarcity OF equipment and
geson Of traffic. and by the fact that several of the
largest railroads in the country have in the past few days
reported record car loading figures The Santa Fe in the
week ending October 30 had the largest loaded car
men in its history the Burlington October II and Is
set new record for 4S hours the Pennsylvania middle
division in October broke its record for month"; and the
Missouri Pacific in October had the heaviest freight
traffic in its history
If the confidence aroused by the improvement within
the past few weeks is sustained railroad will enter
faction But will take many months of good business
for most of the roads to make up for the effects of the
depression and for many of them even large increase
in traffic will not suffice railroads condition is not
determined by gross earnings alone and the recent in
ceases in net are largely artificial They are the result
oil the very rigid economies that the railroads have been