Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1921-11-21
roRD's RAILROAD AND PROFIT DECLINE


DEt,AvV ArttANs have heard much that true and
~ much that was false relative to Henry Fords rail-
road and its operation recent years little railroad
has bulked so large the public print and the public
mind.
Citing statistics filed with the Interstate Commerce
Commission by Henry Fords railroad the Detroit Toledo
and Ironton the Railway Age shows in article in Its
current issue that The monthly net return earned by the
railroad declined over 10 per cent between June and A
gust tho last month for which complete figures are
available.
The reduction OF twenty per cent in local rates and tho
advance in wages granted by Mr. Ford put into effect
on Jusbi II was widely reported that, in spite Of the
reduction in rates and advance in wages Mr. Ford had
converted tho D., r. and from bankrupt into pros
porous railroad The statistics published in the Railway
Ago show that in June before these changes were made
the total earnings OF the railroad S73527 and That
they increased in July to siii9s and in August TO S'05
$40 They also show that in June before tho rates ana
wages voro changed the expenses Incurred by the rail-
way for each dollar earned 527 cents while in July
they had increased 507 and in August to lis cents
The result Of this large in operating expenses
was that the net operating income declined from so So'
in June to Ss7395 july and 10 only STOOLS IN August
The recent reports OF tho road to tho Interstate Com
merce Commission says the Railway Age fail to MAIN
lain the marked improvement in earnings which carrier
in the year ned the newspapers with accounts OF Fous
railroad miracle" Mr. Ford installed his own manage
ment on the road In March, in which month inc net Vp-
Grating income was ST. In April the effects Of The
Ford tralc or tho Ford genius were made apparent IN
net operating income Of 76 l52 which resulted from an
increase In earnings Of s25s,i39 while the expenses
increased only $3.50 The report for April became avail
able about July T. or about The time Mr. Ford announced
his increase In wages and proposed reductions in rates
and led to the wide publicity given 10 statements tha'
Ford had shown an in net while increasing wages
and reducing rates For May there further increase
in earnings but the expenses also went up and The net
was lower than in Apri and IN each month since the net
has been s7O63 or less than II was in March although
The earnings wero greater than In any preceding monn
and s32i 900 greater than in March.
Comparing Mr. Fords railroad with all the Class rail-
ways OF the United slatos Is like comparing mouse win
hppopoamus SINGS. however, The propaganda regard
ing the miracle" worked on The d. r and has invited
the comparison the following facts are presented Tor
what they are worth: Between June and August Wheh
Nr Ford made his famous changes in rates and wages
the total earnings OF the d. r. and increased per cent
while those Of all Glass railways increased 93 per cent
Meantime the operating expenses Of The d., T. ana l.
increased less than per cent In consequence Tho net
operating income 81 the H. r. and declined over 10 per
cent while that OF the Glass railways Increased from
Ssi6,OOOO 10 s9O9hOOO, or almost u per cent The
increase In net operating income OF tho Glass roads was
mainly due to the reduction OF wages on July ].