Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-28
WHERE RAILWAY MONEY is GOING.

The Railway Age, in an editorial in it's current
issue, gives data which show some of the
principal reasons for the high operating expenses
which are preventing the railways from earning the
net return which it was expected they would earn
under the freight and passenger rates. The net
operating income which the railways should have
earned in October the basis Of per cent
annual return is $113,0OO OOO The return actually
earned was $S5,O00.OOO.
THE operating efficiency of the roads has in
many respects been greatly increased in recent
months" says the Railway Age, land at its
height in September and october. The average
miles travelled by each freight car, the average load
per freight Garland the average tons per train in
those months Moke all records. Why, in spite of
all of these facts were the operating expenses so
high?
mo detailed statistics of operating expenses in
October are available, but detailed statistics
of expenses in September available and they
throw much light on the situation. Transportation
expenses-that is the coast of making up break
ing up and moving trains-are almost exactly one
half of the total operating expenses The Interstate
Commerce Commission gives unit costs for several
tins which enter into the expense of transporting
freight including locomotive repairs wages of en-
gnemen, fuel, other locomotive and train expenses
engine house expenses, and wages of trainmen. For
each freight train that moved mile in
September 1919 the cost of locomotive repairs was
1916 cents, while in 1920 it sos cents, an in
crease of IA per cent This accounted for approx
matey $6,3O00O0 of the increase in transportation
expenses. The increase in the wages OF engineers
and fremen for each mile freight train was run
was from 233 cents to 31.5 cents, or So per cent.
This accounted 5000, 900 of the increase in
transportation expenses.
1.-THE increase in the cost of fuel per freight
train from As per cent to 65 per cent, or 45
per cent and this accounted for over $1215O, 900
Of the increase in transportation expenses. This
advance in the cost of fuel entirely due to an
advance in the average price of coal The average
price per net ton paid by the railways in Septem-
Der, 1919 1910, while in September, 1920, it
was s4.54, an advance Of 46 per cent. Trainmen's
wages for each mile freight train moved in
September, 1919. 1865 cents and in Septem-
ber 1920, they were 1916 cents, increase of al
per cent This accounted for over $6,70O,OOO Of
the increase in the of freight transportation.
There were corresponding increases in the cost of
moving passenger trains.
"The foregoing figures take account of the
increase in the cost of maintaining tracks and
equipment. The increase in the cost of manten-
ance of tracks and structures in September was
over $4,000. 600, while the increase in the cost OF
maintaining equipment was about $1O,00O,OOO The
foregoing figures show that the increases in
penses took place in all departments, but they were
principally due to the advances in wages and to
increases in the cost of fuel"
The Railway Age emphasizes the Importance
OF every effort being made to reduce operating
penses, and especially of every effort being made
by the railways and the shippers to continue the
heavy loading of and trains. 1t shows that
in September, 1920, the railways handled Is per
cent more in each train and 40 per cent
more freight in each loaded than in the year
1915 To handle the freight traffic in Septem-
Der they freight trains 53,017,000 miles. With
the average carload and trainload of 1916 they
would have had to run freight trains 32654000
more miles to have handled the business and loco
motive repairs wages of enginemen fuel and train
mems wages freight service, if freight trains had
been run this additional mileage, would have
amounted to $50 100000 than they actually
did Furthermore, this additional train service
would have caused much greater expense for main
tenance of way and structures and for maintenance
Of equipment.
"The unprecedentedly large carloads and train
loads in which the railways recently have been
handling freight have been saving them, and
through them the shippers and the public, liter
ally hundreds of millions of dollars month, and
there ought to be the utmost effort and co-opera-
ton by the shippers and the railways to maintain
and increase these loads"