New-York tribune., 1921-06-13
April Railway
Income Falls
Off ST, 100000
Executives Report Revenues
in Month Amount to Re-
turn of 2.l8 Per Cent ON
Ratio Making Valuation
Lists From POI Carriers
Statements Show That Cuts
Have Been Made i'm Cost
of Keeping Trains Moving

From The TrfbttHes Washington Bureau
WASHINGTON, June 12.~-Railroads
of the country had net operating in
come of s29,201,o0O during April,
$1,494,oo0 less than in March, accord
ing to reports transmitted to the In
terstate Commerce Commission by the
carriers, the Association of Railway
Executives announced to-day.
On the basis of the tentative vaiua-
the commission under the transporta-
tion act this would be at the annual
rate of return of 2.1S per cent, COM
pared with 2.30 per cent in March. The
carriers in April fell short 51,2S6,o00,
or approximately 64 per cent of earn
ing the amount contemplated by the
act. The tabulations are based on re-
ports received from 201 railroads, rep
resenting a total mileage of 235,l60.
Comparison of the reports with those
for March show that the railroads dur
ing April made still greater cuts in
their operating expenses, but that their
operating revenues also were less. The
ratio of operating expenses to reve-
nues in April was S6.74 per, cent, COM
III
Reductions compared with April, 1920,
in operating expenses were reported in
all districts.
Operation Cost Drops
Reports show that the total operat-
ing revenues in April were S433, ,1S1,
600, or an increase of n per cent over
those for April last year. while operat-
ing expenses were S375, ,000, or a
decrease of 81 per cent under April,
1920. The net operating income of
S29, ,201, 900 compared with an operat-
ing deficit of S23, 900 in April, 1920.
In considering comparisons with
April last year, however, consideration
must be given to the fact that railroad
operations were tied up that month
by switchmen's strike.
During the eight months since Sep
tember /, 1920, when the guaranty
come of the carriers has totaled $279,-
5000, which would be at the annual
rate of return of 2.41 per cent on the
tentative valuation of the railroads.
This sum, however, is S414,253, 600
under the amount contemplated to be
earned from the rates established by
the commission.
On the basis of the net operating in
come for April carriers in all dis
trlctS, as IN previous months, 1ell lar
short of earning a return of 572 or
per cent. In the Eastern district the
net operating income was at the
average annual rate of return of
per cent, in the Southern 3.11 per cent
and in the Western POI per cent.
Revenues Up in West
Complete reports from the Eastern
district show that the total operating
revenues of the carriers there We're
$196,768, 600, or an increase Of 1876 per
cent4;over that for April, 1920, while
operating expenses were $170, 900,
or decrease of 6.8 per cent, compared
with the same previous month. The net
operating income was S13,126,000, COM
pared with an operating deficit of $24,-
057,0o0 in April last year.
With all roads reporting, the operat-
ing revenues for the Southern district
were S72, ,161 900, or an increase CT OF
per cent over those for April, 1920,
while operating expenses were $50, 49,
900, or decrease of 2.8 per cent, COM
pared with one year ago. The net
operating income was $5,562 900, or an
increase of 79.5 per cent, that for
April last year being only $3,099, 900.
The Western district reported
operating revenues of $164, ,252 ,000, or
an increase of 16 per cent over April,
1920, and operating expenses as $142,-
548,000, or decrease of 6.8 per cent,
compared with April last year. The
net operating income was $10,513,000,
compared with a deficit of $2,S09, 900
during the same month in 1920.