The Birmingham age-herald., 1917-09-13


 The railway companies of the United States have for some years made re- ports which are paradoxical and this IS especially true at this time. For the interstate commerce commission has just reported that the railroads of the United States in the month of June, that being the latest month for which full statlstics have been received, gained gross revenues which were the greatest in the history or the railroads of the United States. The Washington statement expresses the en- thusiasm of the commission over these figures by saying that the June earnings made that month the banner month for American railroads.
 Nevertheless market quotations for raii- road securities have been steadily depre- ciating and some of the best railroad stocks have been quoted considerably De- low par, although there was no doubt about the ability of these railroads 10 earn enough to pay fairly good dividends. The railroad managers can in no other way secure needed funds for improvement than by selling short-time notes when hear a high rate of interest. Yet there is not a railroad manager in the United States who upon being questioned re- speeting the railroad situation fails to say that the railroads must have several bill lion dollars of fresh capital II they are to meet the transportation demand which will be upon them speedily. In fact were it not for the coordination and cooper alton of the railroads so that they are now operated as a single unit under the authority of the government 1t would De impossible for he railroads now to nahdie the transportation demanded by the gov ernment and fairly well to meet the de- mand of the industries and merchants for transportation of commodities.
 In six months beginning on January last the gross revenues Of the rallroaas of the United States were very nearly $, 300, ,000, 900. They earned S20o,0ooooo more than were earned in the first SIX months of 1916. One of the leading railway man agers of the United States said this morning that were It possible to report gross earnings of nearly S2,Ooo,oooooo III six months and at the same time to re- port that operating expenses stooo at about the average figure or three or four years ago, then the railroads would be in position to approach the money market confidently with intent to secure a considerable part of the new capital needed. But unfortunate for the rallroaos' notwithstanding their great increase Tn gross earnings, the operating expenses have increased at such proportionately greater rate that the net earnings are far from satisfactory.
 A day or two ago market quotations for the stock of the New Haven Rall- road company fell below 30. at whlcn point the quotations had been hoverlng for sometime. This in spite of the ract that in July of this year the gross reve- nues gained by the New Haven were s7. .as4 GOO. or considerably greater than the gross revenues for July of last year. Tho gross earnings in July of 1916 were the greatest for one month in the history or the company until July, 1917.
 Yet the net earnings decreased. The reason for that Is that operating ex- penses have become enormous. In the first seven months of 1916 the operating expenses of the New Haven were nearly xea 000.O0O The wonder was how long the company would be able to live without seeking the help of the courts if operating expenses continued at this rate. They not only continued. but increased in the first seven months of the present year. The increase amounts to about $40O0,0O0. Yet this company, as is the case with all 1 tha other railroad corporations of the United states, has been operated with the greatest possible efficiency and has intro duced many valuable economies. The i cost of supplies of all kinds, the increase ! in the wag6e and salaries paid to rail- l road employees, the high price which 1t
 has been necessary to pay for coal and I other heavy charges have in the aggre- l gate eaten so heavily into the gross earn l ings that while these have been the l largest in the history of the road, the | net earnings have fallen so greatly that
 the net income of the company for July. l 1917, was nearly s1.O0o.0OO less than in July of the preceding year.
 l At this time when the railroads arc CO., l operating as though they were a single unit with the government in order to se- l cure speedy and adequate transportation l of troops and of supplies this somewhat alarming situation Is merely spoken of as one which portends to grievous em- | barrassment not only to the railroads. but to the people, unless there come Y | change. Railway managers are gra to observe that the attitude of tho
 lie toward the railroads is rapidly chang