Omaha daily bee., 1916-12-27
RAILROADS MAKE
OYER ONE BILLION
Expenses Have Not Kept Pace
With Rapid Rise in Re-
ceipts, Table, Show,
EAST LINES GET THE CREAM

Sl,0O0,0OO,O0O net income from opera
tons was made by the railroads o
the country during the year now clos
ing. The large total is the peak o
prosperity in railroad operations, ant
stands more than one.third highc,
than the top of 1918, hitherto thu
banner year.
Statistics gathered by the Inter
state Commerce commission, com
plete for nine months aud made tn,
basis for calculation for the entir.
year, indicate that the total net in
come from operations will be approx
mately Sl,09s,00O.000 For the frs
nine months Of the year complete re-
turns show $7Ss,55S,266. Even thi.
does not represent the full amount
as roads whose income is less thar
100000 are not included,
Estimate Conservative.
The estimate-Sl, 09S, OO0, 0O0-is re.
garded by officials as conservative. II
makes no allowance for normal in.
crease in business. during the last
three months--returns for which are
unavailable-but places the income for
October, November and December a,
the same figures as for July, Angus,
and September. There is no question,
officials say, but that there will be
an increase. the only doubt is as to its
size.
An analysis o. the returns for the
first nine months shows startling
increase from January to September,
amounting to more than 81 per cent.
Thus, net income in January, S64,9lS,-
286. had noun ed to $l07,9l0,8l4 in
September, an Increase of nearly $45,-
100000.
Its Chief Items.
For the frs, nine months of the
year, the commissions figures show
that the railroads collected $2,6S4,829,-
647, from all sources Of operation, the
chief items Of w.lieh were as follows:
Freight, $l,S7s,0l9,990; passenger
traffic, $522. l03,907; mails, $45,348, 500;
from express companies, $65,089, 474;
incidentals, dining and buffet car serv-
ice, operation of hotels and restau-
rants, sale of vending privileges on
trains and at stations, parcel rooms at
stations, demurrage, storage of freight
and baggage, telegraph and telephone
wires leased to other companies,
operations of grain elevators, etc.,
$604l4,5o7; and all other transport
ton charges, $76,067,6ll. The last
item embraces sleeping and parlor car
service, freight on milk, which has
virtually an express service, switching
charges and the operation of special
trains.
Record Gross Income.
This total, using the first nine
months as basis, will reach $780,
GAO, 502 when the year closes, officials
estimate, and without doubt will ex-
coed it. Never before in the history
of railroad operations have the roads
had so great gross income. @
Expenses have not kept pace with
the rapid rise in receipts, although
they have measurably increased. From
a total Of $l82,88l, 269 in January ex-
penses had increased to $203,235,3 1874
in September, approximately II per
cent. During that period receipts had
increased from $260,054,306 to 1884,
o54,30l, approximately Is per cent.
The chief items Of expense for the
nine-month period for which returns
are available are as follows: .@
Maintenance of way, $320,1H,526;
maintenance of equipment, SAL, $780,
069; transportation, $S58,973,536; traf-
fic, $46679,422; miscellaneous oper-
atoms. $lo,904,76o; general expenses,
administration, SOL .996, 428.
All operating expenses totaled $l,744,-
l60,022.
Il On the same basis the years ex-
penses will approximate $3.50, 066, 800,
leaving net revenue from operations
81 54,575,5l2. From the. last figure,
however, must be deducted the rail-
roads annual tax bill, approximately
$l55,625,s46, and bad debts-down on
the books as uncollectable revenue
approximating $965,92S, a total OF
1861 ,4H.
Profits on Every Mile.
About 230,500 miles of railroad were
in operation during the year. In the
first month the total fell below $780,
0oO; during the latter part of the year
it exceeded 100000. Using 100000
as an average returns show that for
every mile OF road operated in the
country the railroads will receive this
year approximately $l5,655 in gross
receipts and a net income of $4,774,
or little more than 80 per cent of the
gross.
Compared with previous earnings,
net income for 1916 shows an increase
of more than 81 per cent over the
focal vear of 1Q1S 90 ner cent over