Evening journal., 1921-11-05
REDUCED ssssooo. 600 IN A YEAR


rENAT the public including that part Of 1t in Delaware
actually paid about sos 100000 less for railroad
transportation during the nrs year after the present
freight and passenger rates put in effect by the In
ters,ate Commerce Commission August 26 1870 than
did during the preceding while the rates were lower
but the roads under a government guaranty, is
shown by the Railway Age in article in It's current
issue anayzng the statistics Of railroad operation for the
twelve months period ended August a. Figures compiled
by OF Railway Economics show that for the
year ended August 81 1871 The total earnings Of the Glass
were Sc 6Oi5 3 100 compared with S52i9i2S5o
for the year before, increase or S0iS, or 90 per
cent In the year ended with August 3 1890 however the
railroads were guaranteed by the government at the rate
Of approximately s9O6OoOOO per year As the roads acu
ally earned during that period net operating income OF
only 2s5isO7 e public had TO make up the difference
OF SssOOOO0 from taxation This made the total 1t paid
in both rates and about SCOOP 10000 as already
stated about S5sOOOOO than during the nrs twelve
months the present rates in effect This reduction in
the amount Of the public paid about 81 per cent
while meantime the reduction the freight service rem
dered was about "a per cent
In addition the Railway Age says the statistics show
that while because Of the slump in traffic the full bene
ns OF the rate increase not realized, ho roads still
earned than they did before at lower rates and that
while they unable to reduce expenses 10 proportion
to the reduction in irac partly because Of the wage in
crease the expenses less than they were the year
before.
Freight revenues for the year ss79oS7s an in
crease OF 96 per cent and passenger were ST.
gs .3ei576, an Increase OF 2s per cent
Total operating expenses for the year s5i6 6os92
Ia reduction OF s2ss76psi compared with the preceding
year or a. per cent Expenditures FOR maintenance OF
way and structures decreased 1873 per cent and for main
tenance OF equipment 1i per cent. while transportation
expenses reduced only "a cent and rafic ex-
penses increased s per cent and general expenses In
.
OF ioA per cent and The net railway operating income
was &0e59E as com5pared with only sss5S6T in the
previous year the operating ratio for the year was So o
as compared with 1890 the year before.
Although The net railway operating income represented
less than haK OF The per cent return contemplated by
The law the results show that The relation between ex-
penses and earnings far better than IL was In he pre-
vous year during half Of which time the roads were be-
ing operated by The government and the other half they
were under the six months guaranty provided by The
Transportation Act
The no, return earned by he roads for the year ending
August a. 1921 was 20 per oenL on the Investment This
was s5 323 less than The amount needed to produce
per cent RETURN and about sa55Oo000O less than me
owners would have received as rental for their properties
La government control had been continued For no monih
since the rates were increased has The rate OF return
reached 60 per cent basis although the volume OF ranc
for the last four months Of 1920 greater than II had
ever heen for the corresponding period Of any other year
The net operating income for the year was, however
greater than il was during either 1918 or 1919 while he
roads were under Federal CONTROL although during those
wears the companies were guaranteed against loss '
Reduction in operating expenses OF S2is66 was maa'
I'm snie OF The fact that the increased wages awarded bl
The railroad Labor Board in 1920 were in effect until Jul
4 ,gqI when there was a reduction OF approximately q
lns, een the reduction in maintenance expenses alon
was s95 oooooo which showed how the greatest savings
were made