Every evening, Wilmington daily commercial., 1921-03-01
P, R, R. HAD DEFICIT
OF S307,522 IN DEC.,,
TOCUT COST MORE
Reduction in Operating Expenses
Not Equal to the Decline
in Receipts.
$4,000 WORKERS ARE IDLE

PhiladeIphia, March I--Pennsylvania
Railroad management is Preparing to
pare down still further its operating ex-
penses in order to keep them better with
in gross revenues In the latter part of
1920 the company announced ~ per
cent reduction in operating expenses and
as this failed TO reduce costs AS fast as
traffic declined further cut OF I'D per
cent was ordered III january. The total
curtailmcnt of 20 per cent ordered Tor
january was based ON November figures
The necessity for further curtalment
OF expenses is seen IN the company's state
mcnt of operations for December showing
n net operating deficit of S3O7 500 and
! the statement of Vice President W w
| Atterbury for last wear given ont veg
! terdav that the Penisylvania, according
! TO estimates, WAS onC of tho companies
| which failed 10 earn lis fixed charges IN
| january
The operati ng ratio of the pennsvlvania
which had been reduced 20 S7.9 per cent
in November as compared with ~ per
cent in October nnd' S92 per cent IN
| September jumped 10 956 per cent IN
| December If the early estimate that the
company failed 90 earn its fixed charges
| IN January is borne out when iinal tahula-
1 ton of the month operations - made the
operating ratio for that month Will prob
ably also be around the 95 per cent mark
The lump ~ the operating ratio II
December WAS due 20 inability 20 reduce
| expenses commensurate with the shrink
age IN traffic This cannot hc laid as the
fault of the management hccaus" u ~
bound up with restrictions and regulations
and conditions which are n heritage from
Federal cuatrol of the railroads Tho plight
Of the railroads was laid fully bciorr the
Railroad Labor Board 1T Chcago r.
Gently hy ofliclnls ~ the Association 81
Railway Executives with n request toi
prompt action. hut go far no action has
been taken ~ the Labor Board 90 ame-
hOratc Cond IONS
Gro,e operating revenues ot tho Fcun
/ svlvauia Railroad Go for ncromhoI Ncr'
$50 500. GN1 ~ compared with SAS lGSSlt
IN November q decrease II S5,5l2, as
or 3 per cent, vhllc operating expense
IN December were $50 {25 lSS as com
pared with S5l OSS 1S3 ia November. :
decrease ~ only S-63 2a5 " ; p"r cont
The result Was that tho company rcporto,
a net operating dciic,t Tor December 4
1907 So a- against ret operating IN
come of S4.Sll $50 lu \ovcnlhcl
: IN auuourc cur thr sccand reduction
~ 10 nrr cert u cxpcuscs on January
~ 4tF~ltl'I N'tlitEfi th't NftlfA 'tf.tf t'At
cars o. the rc,nss Iraria ~y-toin mum
hcrcd - fC1 h,t ldlc cars have SINCE hrei
increased t. 3n0 constituting ahau
? 80 per cont ~ tho total equipment
Although tho Penusvlvaua plans
I further decrease II operating expense
there wlI bc no reduction u rates =
wages. The reduction IN expenses will -
. effected hv further clutaIlng forces, dc
crrasing hours 81 work and rrStrictiu
purchases 81 materials ~ peak IN
+ PENNSYLVANIA Svstgn hal ahout 255Wf
employees and Il thb number u cmplove
/. has been reduced hy 20 per cent II woul,
indicate that force has bern cut hv $500
| workers
Owing to tho general slump m traih
: in the last four mo1 tbs u 1920 the year
results of the Pennsylvania Railroad G.
viii not make a. favorable q showing a
7 Was expected when the new rates Wcr
Z announced III 1920 however. the cor
pauy will receive the government cor
I pcusation or guaranty for the first cig1
months Of the wear, only four months
the wear covering operation for the con
: pary's own account