New-York tribune., 1921-04-11
Report
7 Million Loss
For February
u
l06 of 200 Carriers Sub
nitting Figures Failed to-
Even Make Expenses and
Taxes, Executives Assert
Operating Deficit Is Cut
Lines Fell Short Total of
$63, 3,8O4,OOO of Sum Elk.
pected Under New Rates

= rom me lftounc'S " dshtn0tOn Bureau
WASHINGTON, April Railroads
of the country suffered deficit of
S7205,O0 in February, and 106 Of the
200 roads reporting to the Interstate
Commerce Commission failed to earn
their expenses and taxes, according tc
an analysis of the reports made public
here to-day by the Association of Rail-
way Executives. In January the deficit
was sl,167 800, with 100 out of 2oc
roads reporting to the commission fail
ing to make expenses and taxes
OF the 106 roads which failed 10
make their receipts balance their ex-
penses in February as were in the East
ern, 16 in the Southern and "a in the
Western districts. The 200 roads re-
porting in February represent a mileage
of 235,562 miles.
GAS result of the deficit" said the
statement, the carriers fell short S63,-
$4,000 of earning the amount which it
was estimated they wouiu earn under
the increased rates fixed by the Inter-
state Commerce Commission IN accord :
ance with the transportation act. This
act directed the commission to estab
lish rates which would yield TO the
carriers return of per cent on their
tentative valuation fixed for rate-mak
ing purposes by the commission.
Revenues Decline 4la Per Cent
Total operating revenues for Feb
ruary were s406,65s 900, or a decreas e
of Az per cent, compared with those
for the same month in 1920. while
total operating expenses were $685. .S78.-
600, or decrease of 715 per cent. com
pared with February wear ago. The
net railway operating deficit, however.
was reduced 56@ per cent. compared
with that for February, 1920 at which
time there was deficit of s16,56 900.
During the six months the increased
rates have been effective the net rail
way operating income of the carriers
has totaled S21S,311 800 which would
be at the annual rate of return of 2l5
per cent on their tentative valuation.
On the basis of an annual return of
per cent it was estimated they would
earn during that period s531 ,6S6, 900.
During the first four months of the
Der l to January 1-their net oper-
ating income was at the annual rate
Of 3.3 per cent
Iabulations show that the roads in
every district fell far short of receiving
the amount which it had been estimated
they would earn under the increased
rates. Those in the Eastern district
failed by 146 per cent, while those in
the Southern fell short 96 per cent and
those in the Western district 81 q
per cent. In the Southern district
their net operating income was ct the
annual rate Of only $40 of | per cent
on their tentative valuation, while in
the Western it was u Of per cent.
Increase in Eastern Receipts
Complete reports from the Eastern
district show that the operating rev
enues totaled $181 ,443, 900, or an in
crease of 34 per cent over those for
February, 1920, while total operating
expenses were SlS0,021 900, or a de-
crease OF 7h2 per cent. The net 'oper-
atlng income, however, was deficit Of
99,Ioo,OO0, which was, however, an in
crease OF CT per cent over what it was
during the same month last year. at
winch time there was deficit of S29.-
527,00O
Reports from the Southern district
showed that the operating revenues Of
inc carriers there were 500 ,667 900, or
decrease OF 9& per cent, compared
WIN those one year ago, while oper-
atlng expenses totaled S64 1870 900. or a
decrease of per cent compared with
those for February, 1920. The net oper-
ating income for the thrty-fve Glass
l roads in that district was s487, 900,
which was, however, decrease Of 906
per cent under that for the same month
in 1920