The New York herald., 1921-08-11
JUNE Rail EARNINGS
GAINED $14,697,OOO
Reports From 202 Roads
Show Total Net of
S51,778,000.
81 PER CENT. RETURN
Still S47,295,000 Below the
Amount Figured in the
transportation Act.
FIGHT ON FUNDING BILL
Pomerene and La Toilette
Start Opposition in Sen
ate Committee.
FIGHT ON FUNDING BILL

WASHINGTON, Aug. 10.-Railroads OF
the country earned s51,7Ts.00o net in
June. which was a gain of $l4,6s7,846
over net earnings for May. according
to reports filed with the Interstate
Commerce Commission by the carriers,
and made public to-day by the Ameri-
can Railway Association.
The earnings for June, the associa-
ton said, represented a 81 per cent.
annual return on railroad investment,
as compared with a "a per cent. re-
turn for May, based upon the tentative
valuation Of railroads fixed by the In
terstate Commerce Commission. Earn
ings for June, however, were $47,-
295, 900, or ATT per cent. below the
amount contemplated by the trans
portatlon act. The June earnings were
the largest since November. when they
amounted to s54,343.793.
Roads reporting deficits for the month
numbered ~, against 50 in May. Of
these "a were in the Eastern, ID In the
Southern and 30 in the Western district
The figures were based upon reports
from 2o2 roads.
Operating Expense. Reduced.
The carriers reduced their operating
expenses to 234 per cent. of their OPP
Grating revenues. against S5.43 per cent
In May. the association said. All money
taken in from railroad operation In June
amounted to s461,127. 900, decrease OF
| 6.7 per cent. from the same month last
year, while operating expenses for June
amounted to s379,6SS,000. or 20.7 per
cent. less than in June, 1920.
/ Since September 1, 1920, when the
| Government guarantee period ended. the
roads have earned S36S.6Ss,OO0, or 20
per cent on their valuations
Opposition to the Administration Dill
4 FOR funding about s500.000,0o0 for the
railroads developed openly to-day before
the Senate Interstate Commerce COM
mittee. Senator Pomerene. Democrat,
| Of Ohio r~slled it "hand out
SenatG. La Toilette inquired deeply
into the origin OF legislation. Director
Meyer of the War Finance Corporation
said he personally conceived the
plan, without suggestions from anybody
His plan, he said, was approved py
President Harding. Secretary Mellon
and Secretary Hoover DID you Know
that Mr.. Hoover was going to New York
| TO confer with railway executives about
it?" persisted Senator La Toilette. MT.
Never disclaimed such knowledge.
B. n. It. Loan "EventuniIy Good"
Senator La Toilette referred to loans
by the War Finance Corporation to the
Brooklyn Rapid Transit Company and
New Orleans street railway company
which he said soon afterward became
bankrupt. The Senator said he did that
TO Indicate ''how business was trans
acted
Director Meyer replied that he re-
| sarded the B. r. T. loan as eventually
good" and said the New Orleans loan
| had been paid In full.
! Director Davis OF the Railway Admin
I istration said a total Of $1,144, 100000
| had been advanced to carriers for addi-
tions and betterments. to meet which the
railroads had given $310,000.00o In
equipment trust notes and $7o,0o0,oo0 In
cash, leaving a balance of s763.000,0o0,
OF which SCI. 100000 already had been
| funded privately. About $100,000,ooO
OF the Government advances, therefore.
he said, have not been funded. but for
various reasons the bill would require
funding OF less than s5oo,ooo,ooo.
| The whole purpose of the funding bill,
Mr.. Davis said. lis to let the public in
stead OF the Government carry these
loans"