The New York herald., 1921-04-11
FEBRUARY RAILROAD
DEFICIT S7,2O5,OOO
106 of 200 Lines Fail to Earn
Expenses and Taxes,
/. c. C. Reports.

4 deficit Of sT,205 900 was established
by the railroads or the United States
in February At the same time 100 out
OF 200 roads reporting TO the Inter
state Commerce Commission failed 10
earn their expenses and taxes. accord
ing to tabulation Of reports filed by the
carriers.
In January the deficit. as adjusted,
was S1,167,S00, with 106 Of 201 roads
failing to make expenses and taxes. OF
the lO6 roads, 46 were in the Eastern
IS in the Southern and A in the West
ern district. The 200 roads reporting
in February represent mileage Of 235,-
562 miles.
AS a result Of the deficit the carriers
fell short S63,SO4. 900 OF earning the
amount which it was estimated they
would earn under the increased rates
fixed by the Interstate Commerce Com
mission in accordance with the transpor-
tation act. This act directed the commits
sion to establish rates that would yield
a return Of 6 per cent. on tentative valu-
alton fixed for ratemaking purposes by
the commission.
Total operating revenues for Febru-
ary were $40665S, 900, or a decrease Of
4 Il per cent. compared with those for
the corresponding month in 1920. while
total operating expensese were S3S5,S1S.-
900. or decrease of ia per cent, COM
pared with February a year ago. The
net railway operating deficit. however,
was reduced 56l2 per cent compared
F,ln. ig1. inc fhar
was also a deficit of 1861, 900.
During the six months the increased
rates have been effective, having gone
into effect on August %. 1929. the net
railway operating income of the carriers
has totalled $21S.3il, 500, which would
be at the annual rate Of return OF 2l2
per cent on their tentative valuation
On the basis of an annual return of s
per cent it was estimated they would
earn in that period $531,6s6.000. In
the first four months of the increased
rates from September / to January /,
their net operating income was at the
annual rate Of 3.3 per cent.
Tabulations show that the roads in
every district fell far short Of receiving
the amount estimated they would earn
under the Increased rates. Those in the
Eastern district failed by lac per cent,
while those in the Southern fell short
36 per cent. and those in the Western
district ~ - per cent. In the South
ern district, the net operating income
was at the annual rate Of only three
tenths Of one per cent. on their tenta-
tive valuation. while in the Western 1t
was one-half of one per cent.
Complete reports from the Eastern
district show that the operating reve-
nues totaled S1S1, $4,000. or an in
~ Il hat
February, 1920, while total operating
expenses were s1S0,021. 900. or a de-
crease of 71a per cent. The net operat-
ing income. however. was a deficit Of
$3.50, 900. which was an increase Of 81
per cent. over what il was in the cor-c-
spending month last year, at which time
there was a deficit Of s29, $4,000
Reports from the Southern district
showed that the operating revenues OF
the carriers there were $69,667. 900, on a
decrease of 9h per cent, compared with
those a year ago, while operating ex-
penses1totalled S64. $50. 900. or a decrease
OF per cent. compared with those for
February, 1920. The net operating in
come for the thirty-five class ] roads
in that district was s4s7,000, which was,
however. decrease of 90.6 per cent.
under that Of February, 1920.
With only the report from the South
ern Pacicic Steamship lines lacking. total
operating revenues for the carriers in
the Western district were S155, 900,
or decrease of 1913 per cent, compared
with those for February a year ago.
Total operating expenses were $140.e67.-
900. or decrease of Sc per cent, com
pared with February, 1920. Net oper-
ating income for the eighty-four roads
reporting to the commission was 205S,-
900, a decrease OF 1876 per cent. COM
pared with that for February last year