Evening journal., 1916-12-26
billion income
FOR RAILROADS
Peak OF Prosperity for
Operations Reached Dur
ing Present Year
ROADS SKIM
CREAM OF TRAFFIC

WASHINGTON, Dec. 26--More than ]
81 OO0,0OO,OOO net income from oper-
atoms was made by the railroads of (
the country during the year now clos |
ing. The huge total is the peak OF
prosperity in railroad operations, and /
stands more than one-tbird higher
shan the total Of 1913 hitherto the
banner year.
Statistics gathered by the Interstate
Commerce Commission complete for
nine months and made the basis for
calculation for the entire year, indi-
cate that the total net income from
operations will be approximately ST.
O9S 100000. For the first nine months
of the year complete returns show
S7S5, 55S, 266. Even this does not rep
resent the full amount, as roads whose
incomes Is less than 81 900 600 are not
included.
The estimate-S1 ,O9S, 100000 is re-
garded by officials as conservative. II
makes no allowance for normal in
crease in business during last three
months Of the year-returns for which
IRE unavailable-but places the in
ne for October. November and De-
smber at the same figures as for July,
August and September. There is no
question, officials say, but that there
will be an increase; the only doubt is
hs to its size.
Analysis of the returns for the first
nine months shows a startling in
crease from January to September,
amounting to more than 81 per
cent. Thus net income in January,
S64, 915. 2SC. had mounted to $1O7,9lO'-
gl4 in September. an increase Of near
IS s43 100000
Mails Pay s45,oOo,Ooo.
For the first nine months OF the
year the commissions figures show
that the railroads collected S2G54.-
| 500 .647 from all sources of operation,
the chief items of which were as fol-
lows: Freight. Sl,STJ. Ol9 $50; passen-
ger traffic. 1922 ,907; mails, Sl5.-
4S,609; from express companies. $685.
lSS9,474; incidentals-dining and but.
fet car service. operation Of hotels and
restaurants sale of vending privileges
on trains and at stations. parcel rooms
at stations, demurrage, storage OF
I freight and baggage telepaTgh-Dv x
freight and baggage, telegraph and
telephone wires leased to other COM
panies, operation of grain elevators.
etc.-s60, 1857; and all other trans
portation charges, $7G.0S7611. The
i last item embraces sleeping and par
Tor car service, freight on milk, which
has virtually an express service;
\ switching charges and the operation
OF special trains.
This total. using the first nine
months as a basis, will reach $4,000
64O,502 when the year closes, officials
estimate, and without doubt will OK
coed II. Never before in the history
OF railroad operations have the roads
had so great a gross income.
Expenses Rise Less Rapidly.
Expenses fhave not kept pace with
the rapid rise in rcceip although
they have measurabiy uereased. From
a total Of S1S2,SS1 ,259 January ex-
penses had increased 1903 235 1874
in September, approximately eleven
per cent. During that period receipts
had increased from S260054, 306 to
I 1924 954 301. approximately twenty
Eve per cent. The chief items OF ex-
pense for the nine months period for
which returns are available are as
follows
Maintenance of way. $500, 157 .526
maintenance of equipment, SAL
100 Oe9; transportation. SS5S .973.5 36 (;
traffic, s546,679 422; miscellaneous op-
erations, $1,000 769; general eX-
penses. including administration, SCI >,
996 42S. All operating expenses total
ed S1,744, 160,022.
On the same basis the years ex-
:, penses will approximate S2346,066,-
y 800, leaving net revenue from opera
!, tions Of S1,254,573 5l2. From the last
figures, however, must be deducted the
/ railroads annual tax bill, approx
ma ely S155,625,546, and bad debts
Town on the books as uncoAectable
A ,evenue-approxir ng s965,92S, a
y o al of S156.591,474
|, About $50 500 miles OF railroad
we're in operation during the year In
the first months the total fell below
$50 600; during he latter part of the
J. year t exceeded 100000. Using 100000
Y as an average, returns show that fol
every mile OF road operated in the
country the railroads will receive this
year approximately S15,655 in gross
receipts and a net income of $4.77i. oil
little more than thirty per cent. o.
the gross.
Increase OF Fiity-tWO Per Cent
n Compared with previous earnings
the net income Of 1916 shows an in
crease Of more than fifty-two per cent
over the fiscal year OF 1916. fifty-nin'
per cent. over 1914 and thirty-four pc
!, cent. over 1913.
y Wide divergence in receipts amonl
1.-THE roads OF various sections is dis
} closed. The Overburdened railroad
~ the east have skinned the cream
y the traffic The congestion at east