The New York herald., 1921-03-31
ROADS THROUGHOUT
US. CUT EXPENSES
Economies Of Operation shown
Chiefly in Closing Shops
and Pruning Payrolls.
REVENUES NOT IMPROVED
Sixty-nine Lines Report Deficit
for February as Slashed
to S2,355, ,045.
REVENUES NOT IMPROVED

Economies of operation and cuts in
expenses, which have extended from one
end Of the country to the other. ex-
hibitcd mostly in closing shops and
pruning payrolls TO the very bone, have
brought the first glimmer of brightness
in railroad statistics in many months.
Preliminary Feb.:ary figures, made
public yesterday by the Association Of
Railway Executives, indicate that while
February revenues do not mako a better
showing and IN most cases not as good
ones as those OF January the drastic
elimination Of employees where they
could be spared has effected q saving in
expenses which shows up powerfully.
rhe preliminary report is for sixty
nine representative railroads, thirty-nin
. in the Eastern. fifteen IN the Southern
and fifteen in the Western districts,
representing S3,3e6 miles or track. o.
approxima tely a third OF the mileage in
the United States The following table
shows results for the month. compared
with those OF February. 1920:
Feb. 1921. Feb, 1920
Gross revenue. .si6l l.oli.a62 SASKATOON
Operating expenses i54,3s2.71, i64,440, $50
Deficit ........... a,355.045 4.52f ,1ss
The total revenues. as represented by
these roads, show decrease of "a per
cent. while their operating expenses ex-
hitit a decrease of 81 per cent. The
favorable increase in the final result
amounts TO 47.9 per cent.
The figures for February, as indicated
b. the sixty-nine railroads, show de-
cided improvement compared with those
or January, in which 109 roads, out OF
.02 reporting 20 the Interstate Com
nerce Commission, failed TO earn their
'xpcnses and taxes in contrast TO eighty
light In December. The total dcfc.t ~
January was s1.l67. 500. or the 100
roads that failed 10 make expenses and
axes. torty-ave wero in tSe Eastern,
.ixteen IN tile Southern and fvr'v-e gAt
III the Western districts.
As result Of the dcflclt. the carriers
allied Dy s6S.43e,s00, 81 approximate y
l02 per cent, to earn tho amount waicn
il was estimated they would earn under
the incress sed rates fixed by the COM
mis-, ion in accordance with the transp-r
tation act Of 1920. Under that act. rates
We're TO be established TO yield to the
carriers a return OF per cent. on their
tentative valuation fixed for rate making
purposes by the commission. Inasmuch
- the roads had a deficit it is mani
festly impossible to compute any rate
Of return on their valuation for January.
Total operating revenues for January
were s468, ,SS4 900. or All ircress SO OF 10
Per cent from those for the same month
in 1920 while total operating expenses
were s442.474.000, an increase CT c 3-5
per cent. from those Of the preceding
January. The me- railway operating in
come, however. vas decrease OF 1907
ner cent under that OF January. 1920
IN making those tabulations, S54,t36.000
II back mail Pay. paid the roads in
! 7ue:y 1920. tut spp.icab!e in 1918 and
1919. IS not inclrd-d
or the total operating revenues for
January s323.5Ss,oo0 Was derived from
freight traffic. o. an increase of only
4 l-5 per cent. compa red. With those OF
The preceding January despite an in
crease in rates effective last August and
approximating SS 1-3 per cent. Pas
5engeI revenues for all the carriers
'otslled S105,a41 900, or an increase OF
only IA 3-5 per cent, compared with
those of the corresponding month of last
car An increase of 20 per cent. in
passenger f-li es also went into effect
lest August. The small percentage OF
increase IN freight and passenger reve-
rues. however Is due to the fact that
business during the month fell Off the
ret ton miles for freight decrea sing l4.1
per cent and passenger miles approxi-
niately Gis Pc cent. compared with
those OF January. 1920.
The net operating income OF the car
riers for five months beginning on Sep
tember !, when tile guaranty period
ended, totals s22o,l61.000. which would
nc at the annual rate OF return on their
tentative valuation Of a.S4 per cent.
i'or the first four months their net oper-
Iline income was at the annual rate Of
3 40 per cent.
All Of the 202 reporting roads fell
tar short OF the amount that il was
estimated they would earn under
the Increased rates. Those in the East
trn district failed by lie per cent. in
tie Southern by 15 per cent and in the
Western by 100 per cent. The net opcr-
atng income Of the carriers in the West
crn district was only $500.
Total operating revenues Of the ca;.
riers Ia the Eastern district We're s212,-
$50. 600. an increase Of lis per cent,
while expenses were s2O6. $50 900 a gain
or 80 per c-nt. The net operating in
CINE of the Eastern district roads. how
,ver. showed a deficit Of s4.7S4000.
which was J1.1 per cent. less than that
OF the same month last year, when the:e
slso was dtflcit.