New-York tribune., 1920-10-29
Gain in Earnings
With Rate Advance
Shown by Railroads
Net Operating Income Is
Less Satisfa in
Many Instances Because
of Different Policies

Additional September railroad earn
ings reported yesterday TO the Inter
state Commerce Commission showed
large gains in gross, due primarily to
the rate increases that became effective
August &c, but operating income was
less satisfactory generally 5cc'nsc of
the varying policies of the O. orent
companies in making charges against
operating expenses.
For example, the Virgnian Railway
in September earned an approximate
mon stock, whereas the Norfolk g.
Western, another soft coaler, corsid-
cred better developed, appears TO have
earned the equivalent If only 81 \
share. Perc Marquette showed gain
of about 80 per cent in gross, but actu-
ally less net operating income than in
September, 1919. The Atlantic Coast
Lines gross increased only'7 per cent,
or less than enough to count.ract the
wage increase.
The increase in gross earnings oe the
Delaware, Lackawanna & Western last
month amounted to S1,978,778, while
net operating income showed gain Of
S125060. Philadelphia & Readings
September gross was up 81, ,557,3 1893,
while net increased only SS4,217. Della
ware & Hudson reported an increase in
gross of $2,9O3,1 ,184, but gain ir. not of
only $929643. The Atlantic Coast Line,
after showing an increase of SS07,6S3
in gross, reported net operating def
cit of $256,425. The following table
Shows in detail the September earnings
of eight different roads, compared with
the corresponding month year ago:
Delaware, Lackawanna & Western
September gross $3.50. $s,l9155s $6,213, ,7S1
Net operating income 9S3.77S S5S,7l8
Philadelphia & Reading
September gross. s.6122s3 S.e54s95
Net income. 'ZEoOt 03S, $40
Pere Marquette
September gross 4.423.425 3.SSc.641
Net operating income. 566243 9olSS3
Virginia Railway
September gross 2,ooe.7l7 f.eso,oso
Net operating income SS6,74T 429,9S5
Pittsburgh & West Virginia
September gross..... 1885 12s $40
Net operating income 4545s 1855
Delaware 4 Hudson
September gross. ...... 5.ooo.1so s.12s. .e7s
Net operating income. 1,139,17o 2os, ,54s
Norfolk i Western
Sss's%ssf Ss sBsssss 'ssss
Atlantic Coast Line
September gross. S.sSi.sso 4754.2o7
Net operating dehct. 2b6,425 60.S37
Assigning to the September figures
the same ratio to annual net operating
income that they have borne as an av-
erage in series of years prior to Fed
eral control, and allowing for other in
come and fixed charges, the September
reports, in addition to those already
mentioned, yield the following tenta-
tive estimates Of earning power for the
roads in the above tabuation:
Delaware, Lackawanna & Western.
Sl5.S5 share on the $50 par value
stock; Pere Marquette, 1888 share
on the common stock; Delaware & Hud-
son, $l3.77 share on the stock.
Railroad managers emphasized the
fact yesterday that although the in
creased freight rates became effective
for the most part before the end of
August, much September traffic had to
be moved at the old rates. This was
because shippers delivered to carriers
as much freight os possible just before
the new rates took effect. In some
cases arrears of wage increases for
previous months were also included in
the Septeressr earnings.