The sun., 1919-02-18
GRAND TRUNK net
PROFIT ONLY $4,000
Total Revenue Is 1854, 75O,OOO,
but Expenses Expand
Likewise.
GAIN AS 1918 ENDED
Gross Receipts Set New High
GAIN AS 1918 ENDED
Gross Receipts Set New High
Record-Rates UP 40 Per
Cent. in Year.

Although the final report OF the opera
lions Of the Grand Trunk Railway fo'
1918 has not been published as yet the
Official figures OF the roads income TOT
the FIRST eleven months OF the year. To-
gether with a conservative estimate OF
the returns for December. show de-
cided falling of In net earnings IN COM
parison with the preceding year. i
The gross receipts in 1918 established
a new high record for any twelve months
period in the history OF the rosn. ms
was due in large measure TO the Two
increa SEES in freight rates granted to the
Grand Trunk and the other Canadian
railways in the last year. These re-
ceipts totalled. with the December ng-
ures estimated. ss4.7bo.ooo. which Is
about s11, 900 in excess or the gross
receipts for 1917.
Expenses Affect Increase.
Tremendous as was the increase in the
total revenue. however, the advance IN
operating expenses and taxes was pro-
portionately equal, being s55.e1o.0o0 as
against s45.554.5o0 in 1917. so that the
net receipts for 1913 were only s7,sto'-
900, a decrease OF more than 100000
from the $s,e53,ooo net earnings for
1917.
Against the 1918 net receipts were
deductions for net interest and other
OF s122,5oo over the same item in the
preceding year. This left q balance OF
$4,000. which compares with s1,S2s,boo
| In 1917.
Still further deductions yet remained
| to bs made, viz. s125.ooo payable I'M
der guarantee to the Grand Trunk West
ern and $4,000 similarly due to the
Detroit. Grand Haven and Milwaukee
| Railways. two subsidiaries.
After making provision for these two
payments there remained available for
dividends on the four classes of stock
only $1,000.
This would indicate. therefore, that all
I dividends on every class OF stock will
have to be foregone again this year. for
In 1917 the net profit available for divi-
dends was sls1.500, but It was deemed
inadvisa bic to make any distribution.
The failure of the Grand Trunk to
make a better showing from It's record
gross income was due almost entirely
70 heavily increased operating charges.
| These in turn we're raised to a new
high level by heavy taxes. and more
particularly by tremendously increased
wage bill.
] IneSe increases were ONSET TO some
| extent. although not sufficiently to make
a good showing for the road by two in
creases in freight rates which Grand
Trunk In common with other Canadian
| roads was permitted to make. The first
increase OF 5. per cent. was allowed
March Is and an additional advance of
25 per cent was granted on August 12.
making the total increase In rates al
lowed for the year Is per cent
20 he, tn,
tanned its volume OF traff1c far better in
the last few months OF the year than did
either Canadian Pacific or Canadian
Northern. In the final twenty weeks OF
1918. when freight rates were 43 per
cent. higher than in the corresponding
period OF the preceding year. the gross
receipts OF Grand Trunk, including all
revenue from freight. express. passen-
gers. mail, &c, from 1916 miles oper-
ated expanded S5,I61.50o, or no less than
45.4 per cent.
As compared with this advance Can
adam Pacific during the same period
and operating over $4,000 miles OF road
expande s5,222.oooI or 81 per cent,
while Canadian Northern. with over
5000 miles. Increased s4,O12.ooO. or q
little less than IS per cent.
eros. Total ss4.7So,ooo.
II was this remarkable expansion in
the closing weeks OF the year that
brought the gross revenue OF the Grand
Trunk up 10 the unprecedented total Of
s6475o, 900. fully sls.s5o.0oo in excess
Of the pre-war period of 1913, when full
dividends werS paid on the per cent.
guaranteed and the per cent. first and
second preference, and also 2la per cent.
on the per cent. third preference issue.
The official figures for the first eleven
, months OF the year show the decline in net
earnings for that period. as compared
; with the corresponding part OF 1917. to
r be s2.s46,25o. - For December the only
I final official figures available are those
: OF gross receipts. which were practically
Identical with those of November.
, With expenses estimated on the same
basis the net earnings for the final
; month of the year will have been about
sSS5,00o. which compares with a deficit
OF 1855, 900 for December. 1917, and net
receipts for the year will work out AZ
, approximately s7.94o,0oo. or about 81,
, 10000 less than IN 1917. when the net
= income barely covered interest and other
charges.
, That all charges have been covered by
Grand Trunk Ia due largely to the big
drop expected to be shown in the amour,
payable under guarantee TO the Grand
Trunk Western and the Detroit. Grand
Haven and Milwaukee railways. two
subsidiaries operating below the border
and now under control OF the United
States Railroad Administration. on the
basis OF the average net railway operat-
ing income for the three years up Ia
June, 1917.
SO far as can he estimated L6S, in
place OF the s1,1e5,o0o paid out by
Grand Trunk IN 1917 under It's g1,aran.
. tee to these subsidiary companies. IL vii
. have had TO pay out only about sls5. DOR
in the past year.
Blrdseye Survey.
The following table gives a compari
son of results for 1918 with the previou,
! year and with 1918. the last pre-war
, year:
Gross receipts go. 900 s5sss 500 sioo, IS
' and tsss.',,', 6S,elo,on S.sA,sOo $685. NJ
. Net receipts. 7,sto,oco 1888, 900 liSls.M
. Int. and charges 7,76oOo0 6,62b SO son SIS
/ To subsid cs.. $4,000 $4,000 as, IS
'Estimated on basis OF earnings for Hrs
eleven months.