New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-05-06
Operation Deficit
I'm Lehiggll Valley,
1920 Report Shows
Subsidiaricsand Government
Guaranty Make Up for
Decline i'm Net Earnings;
Big Increase in Expenses

Z. e. Loomis, president Of the Lehigh
Valley Railroad, in the annual report
just made public asserts that the main
task OF the roads is to prepare them
selves for growth.
Probably the greatest problem con-
fronting the railroads" he points out,
will be to provide adequate facilities
to handle the business of the country,
which, it is fair to assume, will in
crease in the next ten years in the
same proportion as in the past decade.
This your company has constantly in
mind, and at this time is giving espe-
cial attention to, eniarging and i'm
falo and in New York Harbor, and keep
Improving its terminal facilities at Buff
its rolling stock and equipment in first
class condition"
The Lehigh Valley operates 1,448
miles of road, of which the main line
from New York to Buffalo constitutes
the most important part. This is a
doubletrack line.
In 1920 the property earned $75,229, :
500, an increase of So ,6s7 900 over 1919.
Operating expenses in 1920 amounted
to $80,503,975, an increase of $20,194,-
776. The largest increase was in trans
portation expenses. These are the ex-
passenger trains, and they amounted to
Sal ,486,000 in 1920, as against S28 ,871,-
600 in 1919, an increase of $12,646, 900
over 1919 1t should be mentioned,
however, that in the first three months
Of the present calendar year the Lehigh
Valley has shown an actual decrease
IN transportation expenses as COM
pared with the three months of 1920.
The deficit after paying operating ex-
penses and taxes in 1920 was $3.50, 900,
compared with a net operating income
of $3,408,000. This 1920 deficit was
Offset, however, by increased dividend
payments by the subsidiary coal com
panies and by the rental received from
the government. The dividend income
in 1920 amounted to s15,532, 251, an in
crease over the dividend receipts in
1919, of S14,344000! The corporation
surplus, after the payment of divi-
dends, was only slightly lower in 1920
than in 1919, and totalled in 1920 ST.
SGT 900, and in 1919 $2,560,000.
Total tonnage of freight carried in
1920 was 321o4,o00 tons, compared
with 30,935,000 tons carried in 1919.
The most striking change in the
character of traffic was a falling off in
the tonnage of animal and animal prod
ucts carried. In 1920 only 485,000 tons
of animals and animal products were
carried, or 1.50 per cent of the total
tonnage carried, whereas in 1919 1922
600 tons of this class of traffic was
carried, or 2.66 per cent of the total
freight traffic.
Train loading fell off slightly, the
average revenue train load in 1920 being
1854 tons, and in 1919 878 tons.
Apparently the Lehigh Valley has
not reached its capacity, except in re-
spect to certain terminals. The freight
density, which is the number of ton
miles of freight per mile of railroad
was 4,371 900 in 1920 and 1898, 900 in
1919. double-track line with ample
terminal facilities and yards can aver
age twice this density. Car loading on
the Lehigh Valley is better than the
average. The loading per loaded car in
1920 was over thirty-two tons, and in
1919 was little less than thirty-one
tons.