El Nuevo mexicano., 1920-05-06
HUGE LOSSES

That the last two months Of government
operation-January and February, 1890
were among the best months Iii point 81
volume Of traffic handled and gto6s earn:
inks made, and relatively tbs worst III point
Of net refufn earned. under government op,
Grafton, Il shown BY an editorial IL the anr.
rent issue Of the Railway Age.
"Complete statistics regarding the
freight handled the total earnings made and
the expenses incurred by the railways In
JANUARY and February. 1920, the last two
months Of government operation, are now
available says the Railway Age. 1.-THE to-
tai business moved, because Of conditions
which on the whole were favorable. was
much larger than ii was in any proceeding
january and February III history 1t is
therefore worth while to compare the sta
tistics Of traffic. earnings and expenses for
January and February, 1917. the last time
when: the railways were under private oper-
alton IN these months, and the correspond.
ing fibures for January and February, 1920,
the last two months when the railways were
under government operation.
T b number or tons moved one mile In
January and February, 1917, was 81, 900, 000,-
600. In the corresponding months OF this
year II was 81 100000, 900, an increase or
ten and one half per cent. Total earrings
in January and February, 1917, were 1856,
100000 IN the same months OF this year
tAV3 WG&E PcOA soVOtVUus an luCEBHS6 UkIOfLE-l
two and one half per cent. In January and
February 1912; operating expenses we're
$42S,000, 900, while In the same months Of
this year they were $500, 100000, an Increase
Of 96 per cent
The increase In operating expenses was
so much larger relatively than the increased
IN earnings as to cause a heavy decline in
net earnings. There were also some in
creases in taxes. The results Of all these
1nfl1gannAG opn Gfrfl4t4 n1rr ~fVA-A~a AEA l.
operating income, which is the part OF
earnings left after paying expenses, taxes
and so on. The net operating income Of the
railways in January and February. 1917. I'M.
der private operation was $108,981000l IN
January and February, 1920, which marked
the termination Of government operation,
the net operating income was only $1,100.-
600.
THE guaranteed standard return for Jan
uary and February was $104,6 500, 200. The
net operating income actually earned was
less than one per cent Of this amount the
governments deficit in the two months be-
ing over $a03, 000.0 900. The guaranteed stand
ard return for an entire year was S905,000. 4
600. It viii therefore be seen that ii gov !,
ernment operation had continued through
out 1920 and the net operating income
earned had been relatively as small as it
in January and February, the deficit !
would have been almost equal to- !
The total guaranteed return. y
IN spite Of the coal strike, which began !
IN November and ended in December, the J
earnings Of the railways In the six )
September to February inclusive, !
$772.5,000.000. or almost $165, 100000 II
more than they ever were before III any cor 7,
responding six months, and yet the net op- !
srating income was $257,00o, 900 less than Z
he amount required to pay the guaranteed
return for that period These sta y
istIcs seem a complete vtndicaAi0n or the 2
the Railway Age repeatedly y
that as large a n advance in rates Z
you'd have been necessary under govern. y
nent operation 10 stop the mourning Of a
leficit as Will be necessary under private &
peration to secure to the railway e0mpan- E
es the net return provided in the transpor- d
act
whether the increase in operating ex- 2
enses under government operation was q
easonable Or mot is beside the question
he fact Is. that an enormous increase Or ex. y
enses did occur under government opera =
and that under either government or 8
operation it would have heen i'm q
ossibie. without an advance Of IS or so per Z.
ent in rates, to make the railways self-sup y
o.