The Washington herald., 1921-08-11
RAILWAY PROFITS
JUMP Ii MILLIONS
IN MONTH OF JUNE
Net Increase for Month
s5l, ,77S,OOO, Figures Just
Filed Show.
RECORD FOR YEAR
Earnings Amount to 81 PEI
Cent on Valuation Fixed
By Commerce Body.
RECORD FOR YEAR

TIE net railway operating In
come in June OF the railroads OF
the United States amounted to s51,-
77S.000. which was si4.697,34s more
than II was In May. according to
reports just filed by the carriers
with the Interstate Commerce COM
mission.
a.The earnings for June. on the
hasis Of the tentative valuation
fixed by. the Interstate Conimerce
Commission for rate-makinf pur-
poses under the transportation act.
would be at the annual rate OF re-
turn of 81 per cent compared with
"a per cent the previous month.
habu:atio1s show. however. that
the railroads fell short $i7.2e5,000
or Az per cent of earning the
per cent contemplated by the act
Best Month Yet.
amount earned during any one
ncnth since last November. when
their net. operating income was
$54.343.793. Seventy-two roads
twenty-four. in the Eastern. nine
teen in the Southern and twenty
EIne in the Western districts-had
Operating deficits in June compared
with 4 total of eighty-two in May,
The tabulations are based on re-
PORTS from 202 class one" railroads
having a total mileage Of 235.54s
miles.
That the carriers, through eff
ciencies which they have insti-
tuted since the traffic slump began
late last fail. as well as retrench-
nients which declining revenues
forced them to make. have a better
hold on their expenditures now
than for some months Is revealed
by the reports. which show that in
JuEs. S2.34 cents out of every dol
lar of revenue went for expenses
compared with S5.43 cents in May.
I" June last year it was 1854 cents
and in May, one year ago. s5.6s
cents.
Operating revenues in June for
tn, railroads of the United States
t. tailed s46l.127,0oo. which was a
decrease of 81 per cent compared
with those for the same month last
year. Operating expenses were
s379.6Ss.000 or 2o.7 per cent less
tran in June one year ago. The net
operating income was s5l.71S,000,
compared with an operating deficit
"f sI4.6l2.o00 during the same
ricnth in 1920,
On Tentative Valuation.
From September l. 1920. when the
guaranty period ended. to June so.
last. the net operating income OF
the rail carriers was $36S.445, 900,
which on the basis OF their tenta-
tive valuation. would be at the an
nual rate of return of 2.5 per cent.
This amount falls short s5l6.626.0oo
OF that contemplated to be earned
under the rates established by the
commission.
While the carriers in each Of the
districts fol! short of earning a re-
turn of 81. or per cent in June.
the reports show a very slight i'm
rroVement in each compared with
May. The net operating income OF
those in the Eastern district was
at the annual rate of 90 per cent
compared with rs per cent the pre-
"ious month; in the Southern 1t was
also 80 per cent compared with IS
per cent in May, and in the Western
II was 3.4 per cent compared with
2.3 per cent the preceding month.
Complete reports except for the
retroIt and Toledo Short Line. sb Nv
that the total operating revenues
OF the carriers in the Eastern dis
lrict in June were s211.173,000. or a
decrease of Al per cent compared
with the same month last year.
Operating expenses were s114.S96.-
600. which was a decrease of ga
per cent compared with June one
Year, ago. while the pet operating
i:.come totaied S22.724.OO compared
with a deficit of $19,7O6.000 during
that month last year.
Revenue Jumps Greatly.
In the Southern district complete
report5 showed operating revenues
- be S72,50l, 900, or a decrease Of
S.S per cent under those for the
same month last year, while operat-
ing expenses were S62.s46.0Oo. or
c1.2 per cent below those for June.
1872. The net operating income for
the roads in the Southern district
was S5,S05.000 compared with an
operating deficit in June one year
ago of $7,2S0.0o0.
Railroads in the Western district
,epo1 ted their operating revenues
as being $177.453,0o0, or los per
cent less than they were during
:he same month in'l92o. Operating
expenses were $141,946,000, or 1872
per cent under those for June last
year. Their net operating income
was $23,14s.000. or S7.1 per cent
more thaa during that month one
year ago,