Evening journal., 1917-11-17
SATURDAY, NOVEMBER II, 1917.
RATLRoAps AID THEIR FINANcIAL NEEDS

HAlLhUADS AND IHEllt flNANNiAls NEtDss
the American railroads to perform their proper
function in the present war they must receive proper
treatment from the Federal Government and the American
people.
THAT the total earnings and the operating expenses
and taxes Of the railways in August broke all records
for single month is disclosed" the Railway Age
Gazette by the complete statistics Of the Glass roads
for August which have just been made public by the
Bureau Of Railway Economics"
The statistics show that spite OF the fact that
the roads in that month had the largest earnings ever
known, the Increases in their expenses and taxes
relatively much greater than the increase in their total
earnings that for the nrst time March, 1917 the net
operating Of the railways all the three large
territories OF the country cast west showed
a loss as compared with the same month Of 1916.
The total earnings Of the Glass roads in August which
include all the railways Of any considerable size were
s3e53i6i47 This increase Of s35O0OOO the
earnings of last June which previously held the record
The increase per mile of line August 1916 ia
per cent.
Total operating expenses s2i69h-5ii. almost
s0000 greater than those OF May 1917 which previously
was the record month for expenses. The increase In
operating expenses per mile as compared with August
1916 POS per cent The taxes charged up to August
were Si6,999606, which small increase the
previous high figure. which reached In June, 1917,
and was 2i6 cent greater than the taxes per mile
charged to August 1917.
For months the railways Of the eastern district
have been regularly showing losses OF operating
compared with 1916 but during most months the
railways OF the southern and western districts have been
able to hold their In August however the western
lines, with Of IA per cent in earnings as
compared with August, 1916 suffered a decline OF 90
per cent in net operating income. The southern lines
with increase Of 1876 per total earnings had
decline Of per cent. in net operating income The
eastern lines, with increase OF i3 per cent total
earnings, had decline Of 70 per cent in net operating
income The Glass railways a whole had increase
Of ia cent in total earnings and decline Of "a
per cent. IN net operating income
Among the most remarkable and most unsatisfactory
features OF the August statistics the large increases
which they disclose In the ratio OF operating expenses
total earnings. Comparing August 1917, with the same
month OF 1916 the operating ratio Of the western lines
Increased from So per cent 64 per cent? that the
southern lines from &C per 60 per cent that
the eastern lines from Ga per cent to 20 per cent and
that Of the railways OF the country whole from 62
per cent. TO 6s per cent.
Such large increases IN the ratio expenses TO earnings
IN month Of recordbreakng total earnings almost
without precedent When the detailed statistics regard
ing the operating efficiency the roads in August are
sNalsnie they will unquestonably show that that
moh'h the railways handled more tranc per mile Of
ne' per empoye per locomotives per car than in suy
p'oNous month In their history. Maximum earnings
naAnu operating enciency and declining net operating
income surely make portentious combination TO con-
template. " ~
But what else could be expected with wages taxes and
prices OF materials very much the highest ever known
and rates almost the same before the great
wages and prices began?" the Gazette pertinor,, q,
qures "The railways, unlike every other indpstr, ~
basis to their expenses and on peace bas,s
TO their income No other industry could stand a,c,
combination. How long tho railways continue a
stand itg"