New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-06-23
Illinois Central's
Rio Revenue Fails
To Prevent Deficit
Return ST., 900 Higher
in 1920 Than i'm 1919;
Expenses Also Increase:
Contrast Pre-War Year


ra. expenses OF operation and taxes
.stha Illinois Central in 1920 exceeded
sataI operating revenues by S5.So4,o00,
Notwithstanding the fact that total
Alssss~ssins, revenues were greater by
s * AL .(60 ia 1920 than in 1919. The
ssSJ;snis Central is one of the Oldest of
- Middle Western railroads and has
sssa dividends without q single excep-
e.. since its stock became fully paid,
J. Is6s. Il is one of the few American
--.;i~oads that have never been through
"r,ecsivership and its credit has stood
:. tbs forefront of American railroads.
snneratinc 4,799 miles Of railroad.
~.ss nf the main line of which from
rIirsgo to New Orleans is double
s-.ck il formed the base line Of the
-reat triangle OF the Hartman lines Of
ssb;ch the Union Pacific and Southern
pssi6c formed the two sides. 1t is
yosa originating large part OF the
;reicht which it carries and which does
: Isr-e proportion OF passenger bust
1Ass. It's Capitalization is conservative.
tltsaurh the amount of funded debt as
.onpared with stock is rather large the
tsfsIs are we'll under the estimated
vsluation Of the property. The total
stock outstanding December 81, 1920,
vas sos. 296, GOO. and the funded debt
ma s257 sos. 900 Standards of con-
structiou are high and in this respect
ave more nearly comparable to the
Eastern trunk lines than to the trans
rantinentals When the government
took over the property 1t had just COM
nleted the two most prosperous years
Z, it's history In 1916 il had a net
income available for dividends of ST.
S2T 600 or the equivalent of 1912 per
+ba
amount Of which was the same then as
now and in 1917 had SIS, $4,000 avail
sble TO dividends. being the equivalent
n 1890 per cent. In 1916 the company
ras earning $T3, 740, 900 gross, whereas
IN 1920 gross amounted 20 S145, 54S, 900.
The mileage operated was approx
matelv the same in 1915 as it is now.
The tonnage Of freight carried in
1920 was 1928 900 tons. comparing
with 3S246,000 tons in 1919 and 81
O47 900 tons in 1915. The average haul
of freight was 279 miles IN 1920, 261
miles in 1919 and PAT miles in 1915,
The average number of tons Of revenue
freight ner train was go in 1920, 649 IN
miles run by freight trains in 1920 was
@,564,000; IN 1919, 15,170,000, and in
1915, 1928, 600.
Leaving aside the cost per unit of
fuel, labor, etc, and measuring re-
suits obtained in train miles, the IL
l.nois Central did better in 1920 than
II did in 1915. whereas measured in
money the contrast is striking. The
contrast between 1920 and 1916 is COM
parable to like poor showing on many
American railroads. The contrast,
however, between 1920 and 1919 is
worse on the Illinois Central than it
is on most roads, because in 1920 the
Illinois Central had a large gain in
traffic.
In general the probable explanation
Of the great increase in expenses in
1920 is that it shows the effect of get
ting the physical property back into
shape during the guaranty period and
attempting to get the organization
back into trim during the ten months
that the management of the property
was under President Markham. Mr..
Markham had been director of the Al
legheny region during Federal control.
The first of these two causes Is re-
fected in the maintenance figures, the
second in transportation expenses.
Maintenance of way and structures in
1920 cost s29 ,035,0 900, an increase over
the amount spent by the government
on this account in 1919 of $9,439 600,
and maintenance of equipment cost
s42028,000, an increase over what the
government spent in the previous year
Of So, 10000.
Big Increase in Expenses
The increase in transportation ex-
penses was not far short Of SO per
cent. The total transportation expenses
IN 1920 amounted to S66,302 900, or
&09l700G more than 1919 transporta-
ton expenses. The most noticeable in
creases in transportation expenses.
were in the loss and damage to freight
eSpenditures, which totaled in 1920
$4,000, an increase over 1919 Of
N,4S4,0O0; an increase of $2,161,000
In wages paid freight train men, which
Is an increase roughly Of Sc per cent,
and an increase Of $3,514,000 in the
cost OF fuel for freight locomotives.
The following table shows the prin-
cipal figures for operation of the prop
eFty- disregarding whether the govern
nent or the owners operated it,
1920. 1919
Average mileage OPP
Grated .......... 1879 4,7s3