New-York tribune., 1920-10-31
Increased Costs
Cause Decline i'm
Net Rail Income
Many Roads Spend More
for Maintenance and
Equipment Than a Year
40, Monthly Reports Show

In the September railroad reports
submitted to the Interstate Commerce
Commission net earnings in many cases
fell off in the face Of substantial gains
in gross resulting from the higher.
rates reflected for the first time last
month. Although transportation ex-
penses naturally showed large in
creases, due to higher wages and greater
fuel costs, it was disclosed that those
roads which revealed the biggest de-
ciines in net were the same ones that
spent the largest sums for maintenance
of way and equipment.
The September income statements
showed that eleven Eastern roads had
total gross earnings Of $112,931 ,671,
contrasted with $90,397, ,o13 for the cor
responding month year ago. Net oper-
atng income, on the other hand, was
$10,644 $3.50, compared with $14,204,596
in September, 1919.
There was spent on maintenance By
this group So S,25O,00O more than last
year, while transportation expenses
jumped i4,430, 900. The individual roads
reporting we're the Cleveland, Chicago,
CINCINNATI & st. Louis, Chicago G. East
ern Illinois, Delaware, Lackawanna &
Western, Erie, Lchigh Valley, Maine
Central, Michigan Central, New York
Central. New Haven, Pere Marquette
and Philadelphia & Reading.
The expense account of the New York
Central, typical case, showed that
the roads September loss of 100000
in net was due to these increases in
operating costs: Maintenance of way
and structure, $l1.200 900; maintenance
of equipment, $11,30O, 900; transporta-
ton, $500, 900, and per diem charges,
100000, the latter item denoting that
a large number of other road cars was
on the companys lines during the
month.
The Erie, one of the coal carrying
lines of the Eastern group, which
showed a loss in net Of $4,000 in Sep
tember, spent $600,000 more on main
tenance of equipment, s37 900 more for
car hire and $1,600,0O0 more for con-
ducting transportation.
In the Southern group, which com
prised the Atlantic Coast Line, the
Central Of Georgia, Chesapeake &
Ohio, Louisville & Nashville, Norfolk
Western and Seaboard Air Line, the
Atlantic Coast Line was the only road
to show an operating deficit. This was
accounted for mainly by an increase of
100000 in transportation expense, as
same as in September, 1919
The Chesapeake & Ohio, which in
creased its net by S1,400,000, also in
creased its maintenance expenses by
S4O0,OOO. transportation SS50,000, while
there was net credit for car hire Of
S275 600.
In .he Western territory the granger
roads showed up to better advantage
than the lines whose principal busl~
ness is the transportation Of merchan-
disc goods The Great Northern, for
600 than in September, 1919, but still
showed increases Of s6O0,000 in main
tenance and SS0000O for transporta-
ton, This road received a balance on
car hire of S122,000.
The international & Great Northern.
IN the Northwest. showed little change
IN its maintenance accounts. but trans
portation expenses increase $21O,0OO
Net earnings increased $212OOO while
car hire gave the road q credit Of
$4,000.
The total increase in maintenance
charges for the Southern group was
S1,300.000, and for the Western group
S4,1S2 600. The roads reporting for
the Western group were the Atchison,
the Chicago Milwaukee & St. Paul. the
Great Northern, the International &
Great Northern. the Missouri Pacific
and the Northern Pacific.
September gross earnings Of the
Sou' hcrn roads mentioned were $685.
079.475, contrasted with $44,S30 329 a
year ago. Net Of $6,162,S54, compared
with So 49S,224
Th' Western roads reported total
operating revenues of $72,274 S56. con-
trasted with $65,21 921. while net Of
50 1884 ,503 compared with S13,l5O,359.