New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-06-04
Long Island R. r..
Net Earnings Drop
Sharply, Says Head
Peters Emphasizes Necessity
of Increased Passenger
Traffic Revenue; Rec
ord Committing Business

In emphasizing the necessity of an
early reimbursement of the Long Island
Railroad Company's passenger and
freight rates, Ralph Peters, president,
IN statement yesterday, said that
there has been decline Of approx
mately S2O00,000 in net earnings for
the first five months of 1920. This
the fact that during the past winter
and spring the road handled a record
committing passenger business.
Among the factors contributing to
the decrease in earnings, which Mr.
Peters declared was the greatest for
any similar period in the company's
history, was falling off in the move
ment of troops and war freight, which
between January and May, 1919,
amounted to fully $1,8Oo,OOO Due to
the closing of the camps on Long Island
revenues from war business this year
have been negligible, and up to the
present the loss has not been wholly
offset by the new or increased bust
ness.
The cost Of maintaining equipment
on the Long Island for the first
five months of 1920" Mr. Peters said,
was greater by over 100000 than
for the same period last year. Like
wise, transportation expenses on the
Long Island between January and
June l of this year have increased
over 100000 compared with the cor
responding period of 1919. In addition
to largely increased train service
which is being operated this year, we
are paying, for instance, 81 per ton
more for fuel than last year Train
supplies of all kinds, stationery, print
ing, and in fact all the things used on
the railroad, seem to be going up
weekly. Further readjustment Of en-
ployees' wages has served to increase
the cost of operation. On top of all
this, the Long Island. along with other
roads, has suffered curtailment of
revenue as the result Of the recent
strike OF railroad employees.
at is q condition we are face to face
tinue indefinitely to sell our only prod
uct, which is transportation, below
cost. We must provide additional mo-
tive power and cars to serve the travel
ing public adequately. We cannot dc
this from revenues which are INSULT
clent to even meet operating expenses
taxes and interest on bonded indebted
ness. In order to perform good, reli-
able service to the public and also
carry out the improvements of various
kinds demanded by the different com.
minutes on Long Island. and actually
necessary for growing territory, it i,
certainly reasonable that we should be
permitted to increase. our net revenue.
and thus strengthen our financial credit
for the investor will not furnish the
necessary capital for railroad equip
ment and improvement work unless the
railroad is able to keep its head above
water.
Strangely though, in spite Of tho
steady decrease in our net revenues
the New York State Legislature ha!
just passed a measure, known as The
Karle Petite bill, which was backed b,
certain interests in greensboro, which
in its effect not only aims to destro,
the present rate structure of the Lonl
Island Railroad, but at the same tim,
Will still further reduce its earning
capacity.
Naturally, the application of such ,
law would further cripple the credit o
the railroad and reduce its earnin,
capacity to point where good servic,
would be imposs bile and improvements
would stop. Therefore, it will be .
duty, which the management of tn,
railroad owes to all of Long Island t,
contest the constitutionality of thi
OCnellrp -