Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-08-14

earnings. Reports to the Railroads
War Board show that in May, 1916
railways having ia, Jos miles OF line
handle 1882 .S70,109 ton miles Of
freight or Is per cent. more than in
Nav. 1916. This undoubtedly is the
largest freight traffic ever carried.
THE railways of the three large
territories, East, West and South,
have benefited in widely differing de-
grees BY the increases in total earn
ings. The eastern lines had an in
crease of S50,700,000, or 10 per cent.
in total earnings, IN the first five
months of 1917 as compared with the
same months OF 1916, but the in
creases in their operating expenses
and taxes were so large that their
net operating income declined $44,-
200 600, or % per cent. The southern
lines with an Increase of 1872 per
cent in total earnings had an in
crease OF 26 per cent in net oper-
ating income, aud the western lines
with an increase OF 1913 per cent. in
total earnings had an increase OF 9.6
per cent. in net operating income.
1T Is a truism of railway econo.
mics that a hallway on which main
tenance expenses are large compared
with transportation, expenses is in a
healthy condition while one on which
transportation expenses are large
compared with maintenance expenses
probably is not in a healthy condi-
ton.
1.-THE increases in transportation
expenses during the present year
thus far have been so great as TO be
alarming. While the increase in total
earnings IN FIVE months Of 1917 over
1916 was IL per cent. and the in
crease in total operating expenses
was is per cent. the increase in
transportation expenses was $780,
$50 600 or 25 per cent, The import
ance and ominousness of this in
crease becomes more apparent when
# is realized that it has taken place
in spite OF unusual increases in the
average trainload aud the average
carload. 1t reflects chiefly, first, the
advance in the wages of train ser.
vice employees due to the Adamson
law, and second, the large advances
which have occurred in the prces OF
fuel The increase in expenditures for
maintenance Of equipment over 1916
was only 70 per cent. and the in
crease in expenditures for mainten-
ance Of way, per cent.
IN the first Ave months OF 1913
transportation expenses were 81 A
per cent. of total operating expenses;
In the same months of 1916, sos per
cent; and in the same months OF
1917. $50 per cent. In other words
the general tendency has been for
operating expenses to increase faster
In proportion than total earnings
and for cost of conducting trans
portation to increase faster than ex
penditures for maintenance The ex
penditures for maintenance of way
have shown an especially small in
crease relatively.
while absolutely the Increases In
expenditures for maintenance. and
especially those for maintenance oil
I equipment, have been large, appear
ances indicate that they have beer
due entirely to advances in the wages
Of labor and in the prices of ma
terials and supplies In fact, the in
creases in expenditures for mainten
| ance OF way have been so small re
| latively as to suggest forcibly tina
railway properties are not being al
we'll maintained on the whole as 4
desirable. Probably this Is in a larg
measure due to the inabi7Tty Of tn
roads to get enough labor for main
tenanee AID partly to fear that 1
they spend any more now they ma
regret it in the future, when the
may need the money worse