New-York tribune., 1921-05-24
Lackawanna Poor
Showing Laid to
u. S. Operation
Truesdale Says Road Was
Not Turned Back i'm as
Good Shape as When
Taken; Revenue Gains

The Delaware, LackaWanna & West
ern, before government operation of
railroads, was one of the most eco
nomcally operated and at the same
time one of the best maintained rail
road properties in the country. Being
comparatively small property--the
total mileage operated is 980--it was
possible to have a close supervision
over the details of expenditures and
the final authority in the company was
comparatively close to the daily and
hourly operations.
This explains probably the strength
of conviction that W. H. Truesdale,
president, shows in his annual report
for the year 1920. He says in part,
The gross earnings of the company
for the year show large Increase,
$11 ,516,014. The expenses of operation,
however, were much larger, that is,
$17,775,478. The net operating income
shows decrease of $5,842,478 a strik-
ing and disappointing result, as COM
pared with the previous showing Of
the company during a long period Of
years. This showing does not differ
from that of practically every other
which the United States government
took over and operated from January
/, 1918, to February 20, 1920, the rea-
son being, as is generally recognized,
that the management and operation of
the railways by the Federal Railroad
Administration proved a failure in
every important particular from start
TO finish.
Tie railways were not turned back
to their owners in substantiallv as
good condition as when the government
took them over, as the contracts with
the Director General of Railroads cx-
presSiy required. Far from it; and that
IS the chief underlying cause to which
can be traced back all the unfavorabIe
features of the showing of the rail
ways OF the country for the year 1920"
Increased Expenses
Diregarding whether the govern
ment or the corporation was in charge
OF the property, total operating ex-
penses in 1920 amounted to S73 ,84l 600,
an increase of SIT 900. The Iarg-
est increase came in transportation
expenses, which in 1920 were $40,1G5.-
goo, as compared with $50, ,661 coo in
1919. Fuel for locomotives, which is
included in transportation expenses.
cost S8,151,000 in 1920, or $2,684 1900
more than in 1919.
The business in 1920, measured in
ton miles Of freight moved. was in
per cent greater than in 1919, and
amounted to 5,166,000,0O0. The gross
ton miles, including the weight Of car
and contents, including empty car
mileage, was 10,724, 900, 900, almost ex-
actly twice the weight Of the revenue
and company freight. In other words,
for every ton of freight hauled there
was ton of car hauled The percent
age Of loaded car miles to total car
miles was nearly 68 per cent. The
average loading per loaded car was
28.79 per cent. In 1919 percentage Of
loaded car miles was 68.72 and loading
per loaded car 29.12
Passenger as well as freight busi-
ness increased. In 1920 there were
00,o13,OO0 passengers carried. an in
crease OF 1872 per cent; the AVERAGE
length OF passenger journey was 22.81
miles in 1920 and 23.5S miles in 1919.
ne average revenue per passenger per
mile was 1.99 cents in 1920 and j %
cents in 1919. 1t is obvious that con-
siderable part of the increase in the
passenger business was in short haul
and communication business.
Decline in Surplus
The corporation, which received
rental from the government in 1919
and the first two months of 1920, had
gross income in 1920 of $25.446. $50 or
within few thousand dollars Of the
gross income of 1919. In 1920 S2.51O.-
zoo was appropriated from income for
additions and betterments, as against
98f0,O0o appropriated in 1919. After
payment of the regular dividends the
company had a surplus of s5.23 600 in
iSEUe cOmOarlOp with 600 oN0
1919. AZ
In regard to coal mining oDerations
President Truesdale says: Prom
March l to August 81 last, bv the
terms OF the transportation act Of 1920,
TINS company was guaranteed bv the
government the same net income as
during the same period of Federal con-
troll. The company has collected onlv
a portion of the guaranty, or S5,I24-
DUG. The balance that will be due and
paid on this account has not been SET SET
up on the books of the company, as
there are some unadjusted matters to
be settled before the exact sum due
can be, determined. The company's
coal mining operations, while some
what reduced as regards tonnage pro-
duced, were in the main and as re-
spects the outcome thereof in net re-
suits satisfactory"