Evening journal., 1920-05-01
,,r,.t m >rNrss. urlCrIossES

N\r last two iuulu0 OF toft'hli'ui
Jaaua.y aud February 1870 -Wcre onon. hc bes
nao,h in ,~.n of VOLUME Of lranir hsnded and gross
e,rnn-s made and relatively ihe wof-l in point Of net
r,,rn earned undo. ~, ernnent operation Is shown by
q. editorial IN the carren ISSUE OF TIE Railway Age
Complete statistics regarding he eight handled The
total earnings made and The expenses incurred b> the
r..vsys In january and February 1920, he last two
months OF government operation now available. the
Railway Aqe asserts The total business moved because
OF condition. which on The whole We're favorable. was
much larger than in any preceding January and
February In history % therefore worth While TO COM
pae The statistics OF irsic earning and expenses Tor
anuar, and February 1911 the last time when The rail-
ways were under private operation in these months, and
the corresponding figures for January and February 1920
The last Two months when the railways were undcr gov
crnmcnl operation.
The number Of tons moved one mile in January and
February 1917, 6i00o0OO00O In the corresponding
months OF this year Il was 67,i700oO00 an increase OF
10 ~ per cent Total earnings in January and February
1911 were s5662o0Ooo In the months Of This year
they were ss35 so0OO OF Y - per cent In
January and February i9i7 operating expenses were
si23OO0o0o while The same months Of This year they
were ssgeOooooo increase Of 96 per cent
The increase In operating expenses much larger
relatively than the In earnings as TO cause
heaty decline In earnings. There were also some
Increases in taxes The results Of all these Influences
IRE srlklngy reelected in net operating income, which
the part Of earnings left afor paving expenses taxes
and .o on The net operating income Of The railways In
January and February. 1917, under private operation was
sios asiOOO In january and Fo1msry, iP2o~ which
marked The termination OF government operation the ne
operating income was only sii0o0Oo
The guaranteed standard return for January and Feb
uary was siOioO 900 The net operating income actually
earned was less Than per cent Of this amount he gov
ernments dcncil In The Two months being over siO3OOO
100 The guaranteed standard return for an entire veal
was soO5 600 II win therefore be that II govern
ment operaon had continued throughout 1920 and th
nel operans income earned had been relatively as sma
as ,vas in January and February the denclt incurred
would have been almost equal TO the total guaranteed
return.
In spite Of The coal strike which began In No'embe
and ended in December The gross earnings OF the ran
ways IN The six months september TO February Inclusive
were ~ 77500OOO almost si65Oo000 more Than lhe
ever were before in any corresponding six months an
vet the net operating income s2J7oOOOoo less tha
he amount required TO pay The guaranteed standard re
nirn for that period These statistics seem ccmplet
vindlcaon Of the contention The Railway Age repcated
has made That large advance In rates wouh nav
been necessary under government operation TO stop w
ncurrne Of a dencii will be necessary under prNa'
operalion 10 secure TO the railway companies the ne
j return provided for In the transportation act
+ Whether the Increase In operating expenses unde
government operation reasonable or not Is posu
The uuesilon. The fact Is that an enormous increa7
Of expenses did occur under government operation an
e mat under either government private operation
would have impossible without an advance oI % q
80 per cent In rates to make the railways sesupporun