New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-14
July Earnings to Reveal Dawn
Of New Era Among Railroads

months for the "Katy' arc OCTOBER
and November when cotton moves, and
ordinarily net earnings in the Sc months
are much the largest OF the year. but
assuming only continuation OF ABOUT
million and quarter net per month
in the last tivemonths the "Katy' will
earn more than s12,000000 net. From
this must be subtracted taxes. Very
roughly it would appear that the com
pany will have between S7,000000 and
$S,00O.O0O available for interest and
other charges in 1921.
The Kansas City Southern, another
Southwestern road, has been for some
months making an unusually good
showing. A fairly close estimate can
be made of its July gross earnings
and it is probable. unless something
now unforeseen occurs, that July will
show sl,S02 900 gross, with an operat-
ing ratio Of about II per cent, and an
estimated ratio Of transportation OK
penses to revenues of about 32ia per
cent. This is as low transportation
ratio as many CT the stronger roads
had prior to government operation.
There has been no change recently in
the cost Of coal per ton on the Kansas
City Southern, but since April the cost
Of fuel fer oil burning locomotives
has decreased so per cent
South Hard Hit
The Baltimore & Ohio is primarily
bituminous coal road, and next to
coal the largest tonnage is furnished
by the products which go into the max
ing of finished steel and the output of
steel mills. In recent months the move
ment of coal has been at Minimum
and steel mills are operating on as low
a basis as ever before in their history.
Only q rough estimate can be made Of
the Baltimore & Ohio July showing,
and in making this estimate there may
be factors which will have to be taken
into consideration in compiling the
final figures which are not apparent
now. Subject to such corrections, it
would appear that the Baltimore 4
Ohio gross in July. 1921, would be
about sl6,250,00O and that the ratio of
operating expenses to gross revenues
will be about SO per cent. On this basis
net would be $2,763,000 and if the Bal
timore & Ohio is able to hold the
same ratio through the last FIVE months
Of 1921 it would appear that the nor
NAL Increases in business in the later
months of the year, especially October
and November. will give the company
Just about sufficient net to meet inter
est charges and the preferred divi-
dends.
The Southern Railway system pretty
we'll covers the entire southeastern por-
ton of the United States. The company
made an official estimate of its gross
revenues for July. but no figures, it
is said. are available for even a rough
estimate of the ratio of expenses as to
gross revenues. Gross, however, reflects
O . h q hoc oh
South. The companys estimate Of the
gross for July, 1921. was 1854 600.
This is for the entire system. and for
the same lines the July, 1920, gross was
SIS, Ill 900. For the Southern Railway
proper. leaving out affiliated lines, July
gross was $40, 403 900. as against July,
1920, gross Of 1855, 1000.
The Norfolk e. Western lies between
the industrial sections as represented
by the Baltimore & Ohio and the south
east as represented by the Southern
Railway. 1t is btuminous coal road
rejecting coal movement for export at
Newport News or movement by boat
from Newport News to New England
on one hand, and lake movement and
middle and western coal movement
rather than conditions in the Pitts
burgh district. A rough estimate would
indicate that Norfolk & Westerns July
gross will be about $6.500.000, or about
100000 less than gross in June, 1921 :.
and comparing with deficit of $3.50
900 in July 1920. Readjustments that
may have to be made make it imposs-
bic to estimate the ratio Of expenses to
revenues.
July marks the beginning of a new
period in the operation Of American
railroads, and for this reason esti-
mates of gross and net figures are
particularly interesting, but in draw
ing conclusions from them it is of
great Importance to make a mental
allowance for a number of important
factors which enter into the railroad
situation and are quite out OF the
ordinary