The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1921-03-28
THE PLIGHT OF THE RAILROADS


month of January last are certainly
calculated to make the nation sit up
and take notice. They cover l43
roads, in all parts of the coun-
try, with an extent of 178,329 miles;
being about IS percent. of the entire
mileage of the United States. Reports
of their operation and condition are
therefore practically reports on the
whole land transportation system of
the nation; one of the two largest
and most important industries in
which the American people are en-
gagged, and one of the two upon'which
most of all, every other business de-
pends.
The one outstanding feature and
fact of these reports is that in the
month OF January, 1921, these 143
roads-and therefore the transporta-
ton system of the United States
did not earn enough to pay their way.
Their total receipts from oper.tioa
were not sufficient to pay operating
expenses, rent, taxes and interest
their fixed charges. Their total oper-
ating revenues were S370,223,676,
and their total operating expenses
were s352,453,ss6. There was thus
left only s17,76s, $40 for non-operat-
ing expenses, which it fell short of
meeting by s3,12o,4S5, their deficit
for the month.
That in itself. was bad. 1t was and
is still more ominous when it is rec.
ognized to be no mere adventurous
circumstance but a part of consist
ent and apparently inexorable pro-
cess. For years the roads have been
steadily falling behind, with expenses
increasing more rapidly than reven-
ues, and therefore with the net oper-
ating income steadily declining. Note
the figures:
Net operating income, 1917, 1884,
O6S,O0O.
Net operating income, 1918 $685..
$4,000. -
Net operating income, 1919 S454,-
100000.
Net operating income, 1920 $62,-
264,000.
What the continuation of that pro-
cess must mean is obvious. In fact,
it already means it. With the begin
ming of the present year an ominous
milepost was passed on the road to
ruin. The steadily decreasing surplus
vanished altogether and was replaced
by what we must fear to be steadily
increasing deficit. For this the cause,
or train of causes, is apparent. There
has been an enormous falling off in
traffic, and that, too, at the very time
when there is an extraordinary a.
mount of merchandise awaiting ship
ment and when there is peculiarly
urgent need for it to be shipped. That,
in turn, is largely because of the high
rates charged by the railroads. The
prices of commodities of most kinds
are falling, and must fall more. But
railroad rates are kept up, thus dis
couraging if not prohibiting ship
ments, save of actual necessities.
II would be idle to attempt to Law
the blame for this state of affairs up-
on the managers of the roads. They
are not such fools as to try to dis
credit themselves and the existing
order, Of things in raAreading. Last
January was the first month since the
restoration of the roads to their own
ers' in which there was deficit. The
managers reported the fact with
great reluctance, because it spoke
badly of the restored system of af
fairs, intimating that private owner
ship and control was not as efficient
and economical as government man
agement had been. They are, indeed,
the victims of circumstances. They
can apparently avoid ruin only by in
creasing their volume of business.
and they can do that only by encour-
aging patronage with lower rates; /;
and these are possible only through
decrease of expenses, of which the
chief are wages.
For the most striking feature of