Evening journal., 1918-01-04
RAILWAY EARNNGs LAST YEAR LESS THAN SIX
PER CENT.

Q EVlSED figures showing the results OF railway up
N Grafton in 1916. published by the Interstate Com
MERGE Commission In its annual report to Congress- place
the rate Of return the investment in railway
property in the most prosperous year In their history
at only SIS per cent says the Railway Age Gazette in
an editorial in its current issue
The Railway Age Gazette calls attention to the fact
that in its annual report for 1916 the commission pub
lished estimate that the of return for the year
June 90, 1916 would be 35 per cent, and the
mission has published estimate Of 5 per cent
for 1917 1t the opinion that similar revision
Of this figure viii later be necessary Based
patlon made by the Bureau Of Railway Economics, the
Railway Age Gazette obtains estimate that the net
operating Income Of the railroads Of the United States
for the twelve months ending June 90 1917, will approx
mate 81 per cent The Gazette says in part:
Both the gross and earnings Of the railroads
1916 large that when measured in billions and
millions they seemed TO give evidence Of astounding
prosperity and it is only when expressed in terms OF the
percentage earned on the investment that they seem
very moderate. So many glowing accounts have been
published Of the results Of railway operation In 1916
that at the risk Of adding TO the confusion Of fig
ures, cannot refrain from calling attention to the
fact that the Interstate Commerce Commission In a table
published in its annual report TO Congress last week
states the percentage OF operating income to property
investment for The lsca year 1916 only So for roads
Of Glass and Class and their Incorporating subsid
lares In It's annual report for 1916 II publish es
mated figure Of 6.35 per cent
The commissions report gives estimate
Of 65 per cent for the twelve months ending June 30
1917. With the idea that possibly The commissions
method OF estimating may have again produced result
much more favorable than the revised figures will
show II did in 1916 have had another analysis Of
the available statistics for 1877 made by the Bureau Of
Railway Economies and get result Of approximately 81
per cent In the course Of time when the Interstate
Commerce Commissions official statistical reports finally
from the congestion Of the Government printing
Office shall accept the result there stated but while
estimates being made we feel at liberty to call at
tenton 10 the fact that the commissions method Of esi
mating produces higher average rate Of return than is
obtained by using the operating incomes Of the million
ollar roads and making estimate for the roads
Class II and Class ILL., This produces operating incom"
FOR the twelve months ending June 80 1911 Of si0eO0O0
lO0 After deducng estimate for the taxes OF lessee
ompanies, and hire Of equipment joint facilities and
Miscellaneous rents the basis Of the 1916 figures,
el net operating income Of siO5OOOOOOO Si237 pc
nile, which the basis Of $4,000 per mile investment
oduces an average return Of 572 per cent"
That will be disconcerng 10 those corporation
aters who have been seeking. to convey to The publ
impression that the railroads making a mi1lo
minute aud ought TO be soaked"