New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-12
swollen Expense
account Reduces
NY. Central Income
Increase Was 500, 200. 900;
Debt Rose $50, 200, 900;
Net Was Sl3. 735, 900. or
$40 Share; $7.9z in'10

Il i.
ssroaghout the annual report for
asa which is made public to-
- there are many indications that
y. company used 1920 as cleaning-up
s.,:od. beth in it's corporate accounts
III in the physical operation of the
vroperty
| r. Smith, prior TO that period presi-
s.rt Of the New York Central, was re-
s I.sal director for the Eastern region.
e.. resumed the presidency of the New
4 y.rs Central shortly before the roads
.,.ak back TO the private owners.
The New York Central was one OF
,.s two roads that during any large
..-s Of the period of Federal control
Sewed profit TO the governm mt above
.ss government rental. and during the
vkole period OF Federal operation it's
,h6wing was much better than that of
X large competitors. 1t is natural
,serefore, that comparison between
;a90 in which year the government
eeersted the road two months, guaran-
.sad net income for six months. and
Re company operated on its own re-
sooasibility for four months) and 1919
rauld be much worse for the New York
fsntral than for most other roads. In
cher words, the 1920 showing on the
New York Central is compared with an
extraordinarily good showing in the
mo previous years, whereas the 1920
showing on other roads is compared
with poor showing in 1918 and 1913
Increased Expenses Responsible
The unsavorahle comparison on the
New York Central is entirely the result
Of increased expenses. The comparison
81 gross shows considerable Gain in
1870 Total operating revenues in the
welye months of 1920 were S3SS. e24.-
go, an Increase over 1919 of S54 .e65'-
CO. This was the result of an in
crease of 14.7o5,000 tons of revenue
freight carried, an increase of 1855
900 in the number OF passengers car
RED; an increase of 0.68 mill in the
s7erage rate per ton per mile and an
increase Of 0.173 cent per passenger
per mile. The increases of units of
traffic handled are in small part Offset
b?a decrease Of six miles in the aver
sge length Of maui of freight and a
dscrease OF slightly over four miles in
ise average passenger journey. In
lR0 the average haul of revenue
fright was 204 miles and the average
Total operating expenses for the
'RelsF mnhSss OF l92o were S317.553 600.
crssl,S7S,0o0 more than 1919 oneratino
expenses The ratio of expenses - 8
revenue IN 1920 was 93.7S and in 1919
tsssO. maintenance of way charges
we're l4li per cent of operating rev
enue IN 1920 and 1919 per cent in
wv Maintenance of equipment
charges were 27.55 per cent of total
revenue IN 1920 and 21.93 per cent in
1918, and transporta ton expenses 47.01
per cent N 1920'and 40.46 per cent in
1919.
Under maintenance of equipment
E59Sl,O00 was charged for repairs of
locomotives, an increase of $8,062,0O0
ever 1919, and SAT 1858, 900 was charged
Tor repairs OF light cars, an increase
Of S2O,473,000 over 1919. Obviously
such great increases as these represent
acleaning un Of deferred maintenance,
ether through charges against the
government or through additional and
extraordinary repairs given to equip
ment, or both.
The out-of-pocket cost of moving
freight and passengers, exclusive OF
maintenance, overhead and the cost
Of obtaining traffic, was $3.50, 203, 900 in
1920, an increase OF s44, 436,000 The
wages OF trainmen and of yard con-
dgesOrs and brakemen went up over
80 per cent, as did also the wages of
train engine men Fuel for locomo-
tiyes cost S2G,1G1, 900 in 1920, an in
crease Of $12117,000.
Comparative Operation Figures.
The following figures show the com
parison between the operation of the
property in 1920 and 1919, regardless
Of who operated it.
Fresht q rpve4 isa sos 7o2 aos STA a2S a.
Passenger revenue 81 Col. $40 rs, e52 262
,,isvsnue ...'.. s8s.s24.45s 2ss. SIS. aa1
Maintenance Of way
s and structures 47.ss5.5e 1851, 7oa
Aatate n ance Of
equipment ~ 93 2S7 800 62196 1877
1faile expenses. 34642T4 51O7O3
transport alton eN-
e5s sssis expense. s s9s COS COS
Total operating ex
r. Dsnses .......... 317.553.24e o25. CTS. SAC
ss ts T,,;,,.. 14.44o, 235 1o,6o1 745
Ing income. $3.50, ore a7.ss2 24e
s5.49 Per Share Shown
Inc New York Central corporate
w. s..a' income from rental, guara ntee ed
1 @ss ana actual operation, was s49.444.-
Wv w, IN 1870, as against a rental of s57.-
y yo,a received by the corporation in
40 Net after the payment of in.
s 49, ana rental charges available for
s.''uehds was S13,735.0 900 or $5.49 per
mare sa on the stock in 1920 and si9.-
'tT'gVV or $7.97 per share in 1919
n,wiuends OF per cent. on the New
s aO.a Centrai's $249, 597 eco capital
m ,'"eA call for $12,4S0,0Oo approx
IN 1920 the company and the gov
..aihent spent Sill, 900 net on i'm.
p'gSement to the property.
purlng 1920 the New York Central
issued S25 100000 per cent. collateral
. lust bonds and S13,674,0 equipment
,'ase per cent. notes and s17, 298, oOC
yer cent. equipment trust certificates
sssse per cent. note to the United
ss sa'es Treasury for SHIPS 900 due or
s sa years, and per cent. note TO,
pssosV'Ooo maturing serially over Z
r pssoo OF fifteen years. During the
ssaf the company had paid off install.
- e MS on equipment trust amounting
s0,V47000 At the end of 1920, the
S,npahy had a total of s33,433,0o
ls and bills payable. OF the tota
~ ,sa ~ and bills payable at the ent
we war, only 100000 represented
new loan raised during the year
Az ae net addition, therefore, to tn,
H.. n.y. was approximately $S3,700, 900
NV al Of this was either funded dur
tsss ~ eae year or represents debt tt
sae Director General.
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