Evening journal., 1920-12-21
WHERE RAILWAY MONEY rs GONG.

,IIE RAILWAY ACE in an editorial In It's current ISSUE
IL gives some data which show OF The principal
for the high operating expenses which pro
venting the railways from earning the net return which II
expected they would under The new freight and
passenger rates The net operating Income which the
railways should have earned october on OF
per cent annual return is s3oo0Ooo The return sc-
tualy earned sS5OO0O00.
he operating efficiency OF the roads has in many re-
spects been greatly increased in recent months says the
Railway Age "and at its height In September and
October The miles Travelled by each freight car
the load per freight and the average tons per
train in those months broke all records Why, In spite
OF all OF these facts the operating expenses so
ihigh9"
No detailed statistics OF operating expenses in october
available but detailed statistics OF expenses in
September available and they throw much light on
the situation. Transportation expenseshat is the cost
Of making up, breaking up and moving trainsare almost
exactly one-haf OF the total operating expenses The
Interstate Commission gives unit costs for
era items which enter into the expense Of transporting
freight including locomotive repairs. Of engnemen,
fuel other locomotive and train expenses engine house
expenses. and wages OF tranmen
For each freight train that moved mile in
September 1919 the cost OF locomotive repairs 1876
cents, while in 1920 II sos cents increase OF "a
per cent This accounted for approximately s630OOOO Of
the increase transportation expenses. The increase
freight train from 233 cents to 3i5 cents or
30 per cent This accounted for 100000 OF the in
crease In transportation expenses
The increase in the cost OF fuel per freight train mile
from i5 cents to cents or IS per cent and this
accounted for s25OOO OF the increase in trans
portaton expenses This advance the cost OF fuel was
entirely due an advance the average price OF coal
The average price per paid by the railways in
September. 1919, 1910 while in September, 1920 1t
was 81 5t an advance OF &C per cent
Trainmens wages for each mile freight train moved
in September 1919 266 cents and September 1920
hey SIG cents increase OF 81 per cent This
counted for $6OOOO Of the increase in the cost OF
freight transportation. There corresponding in
creases in The cost OF moving passenger trains
The foregoing figures take account OF the in
the cost OF maintaining tracks and equipment The in
in the cost OF maintenance OF tracks and
ures in September s26OOOOO0 while the increase
in the cost Of maintaining equipment about siO,-
100000
The foregoing figures show that the Increase in ex-
penses took place in all departments but they prn-
cipay due TO the advances wages and to increases
the cost OF fuel.
The Railway Age emphasizes the importance Of every
ort being made to reduce operating expenses and espe
cialy OF every effort being made by the railways and the
shippers TO continue the heavy loading OF trains
It shows that In September, 1920 The railways handled
IS per cent In each and 10 per cent more
freight IN each loaded than in the year 1915 To
handle The freight trsc In September they ran freight
trains 530i700O miles.
With the average carload and tTainload OF 1915 the,
would have had TO freight trains q $4,000 more me
to have handled the business, and locomotive repairs
wages OF enginemen fuel and tranmens freig
service, II freight trains had been run this addtona
mileage would have amounted 10 s69OOOOOO more thai
they actually did Furthermore this additional train ser
vice would have caused much greater expense for main
enance OF way and structures and for maintenance
equipment
The unprecendently large carloads and trainoads il
which the railways recently have been handling fregh
have been saving them and through them the shipper
and the public, literally hundreds millions OF dollars
month, and there ought 10 be the utmost effort and
operation by the shippers and the railways to maintain
and increase these loads.