New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-13
Erie Has Deficit
OF $l4,69O,442 i'm
1920 Operations
Fuel and Labor Expenses Inn
portani Item in Transport
tation Costs; Net Income
of $l,526,659 in 1919

The Erie is modern, doublatracked
railroad, running from New York to
Chicago. Its grades are not naturally
as good as those of the water level
New York Central, and it has not done
as much artiticially to shorten its line
and lower its grades as has the Della
ware. Lackawanna & Western. 1t has,
however, kept up with the advance in
the science of railroading during the
last fifteen years, even though the
ppropeIty has been operated under a
financial structure that is topheavy
with bonds and is on the verge of
bankruptcy, except under the most
favorable circumstances. If the Erie
had neither bonds nor stock outstand-
Ing IN 1920, the operation Of it's 1853
miles of railroad would have shown a
loss of Sl6,994,119. In other words, it
cost that much more to move the train
and to keep the track, cars and loco
motives in repair than the total reve-
nue. received from passengers and
freight amounted to.
In the first two months the road
was operated by the government, and
the corporation owning it received a
fixed rental In the next six months
the corporation officers operated the
road. but the government guaranteed
to make up to the company the differ
ence between the actual net earnings
and what would have been the rental
If the government had continued its
operation of the property. In the last
four months the company operated
the property on its own responsibility.
Tonnage Shows Gain
In the year as whole the Erie did
not suffer from lack of traffic The
tonnage of merchandise was 1851 1856,
an increase of SIS per cent over the
previous year. The tonnage of coal
and coke was 22,SS6,093, an increase
over the previous year of 2O32 per
cent. The tonnage of bituminous coal,
which is about four-sevenths Of the
total coal tonnage, increased by 1901
per cent, and of anthracite by about
S.16 per cent. Freight revenue per
ton per mile averaged $50 mills, an
increase over the previous year of a
little over II per cent. The average
haul of freight was 240 miles, de-
crease Of little over s per cent.
Combining the three periods of oper-
ations, total operating revenues
amounted to s122, i63 csc, an increase
of SO ,964,194 over 1919. and total
operating expenses amounted to S133.-
014.159, an increase of S36202, 1853.
After paying operating expenses and
taxes the deficit was $4,000 .442, COM
pairing with net operating income of
S1,526,659 in 1919. The difference be-
tween this figure and the SIC 1874 .119
previously mentioned is accounted for
by adjustments made in combining
corporation and government accounts
Operating Expenses Jump
OF the great increase in operating
expenses over half was in transporta-
ton expenses (train operation costs)
Total transportation expenses in 1920
were 500 1852, 400, an increase Of $751;
SS2.122. Maintenance expenses for way
and structures we're S17,175.194 in 1920,
an increase of S5549,1 ia, and for equip
ment were $40 .252, 567, an increase of
50, S69,927 Two things hit the Erie
particularly hard in trans portation ex-
penses Fuel for train locomotives cost
over so per cent more in 1920 than in
1919, the total in 1920 being $12,S16,0