New-York tribune., 1921-05-13
81 Millions
March Profit
OF Railroads
Net Operating Income Was
ON Basis of 2.2o Per Cent
for Year; Two Previous
Months Showed Deficits
Cut in Expense One Cause
Increased Freight Business,
Amounting TO 800
Cars a Week, Also Felt
From The Trioune's Washington Burea.

Frons The Tribune's Washington Bureaw
WASHINGTON, May 12.-Reports OF
railroad operations in March, just re-
ceived by the Interstate Commerce
Commission and analysed by the Asso-
ciation of Railway Executives, show q
net operating income OF the carriers
for that month of S30,s94,065, It was
the first month since December that
the roads had not suffered a deficit,
and that in February ST,37S,307.
The March net operating income on
the basis of the tentative valuation
fixed for rate-making purposes by
the commission under the transports
tion act would be, on an annual basis,
return of 2.29 per cent. The rail
roads in March fell short $5o,194,9 ,935
of making the amount contemplated by
the transportation act.
The result in March, compared with
the preceding months, was due princi.
pally to a marked reduction in the cost
of operation caused by the institution
of various economies and reductions by
many roads in the number of EN-
ployees. 1t was also due in part to an
increase in traffic, the number of cars
loaded weekly with revenue freight in
February having aggregated 6s2,50o
cars, while in March the average was
69S 900, according to statement of the
association of railway executives.
Comparisons With Last Year
While the operating revenues in
March were S458, ,361,5 ,526, or a decrease
of two-tenths of l per cent, compared
with those for March, 1920, operating
expenses totaled 1899, 9,447, or de-
crease of 4.8 per cent compared with
one year ago. In February 95 cents out
of every. dollar. received in revenues
was paid out in expenses, while in
March this had been reduced to ap-
proxima tely 81 cents.
The net railway operating income
tS30,S94,065) was an increase of 104.6
per cent over that for March. 1920.
For the seven months beginning on
September /, 1920, when the guaranty
period expired, the net operating in
come of the railroads has totaled
S249 ,o49,667, which would be at the an
nual rate of return of 2.44 per cent on
the tentative valuation of the railroads.
This total is 1868, 3,760.303 below the
amount contemplated under the rates
established by the commission.
AS has been the case in previous
months, ali districts fell far short in
March of earning a return of 6 per
cent. In the Eastern district the net
operating income of the carriers was
at the average annual return only of
1.91 per cent: in the Southern district,
2.27 per cent, and in the Western dis
trlct, 2.66 per cent.
Increased Revenues in East
With complete reports except from
the Cincinnati, Indianapolis & Western
Railroad, the operating revenues for
the roads in the Eastern district were
$205, ,864,936 or an increase of nine
tenths of l per cent over those for
March, 1920, while total operating ex-
penses were $3.50, ,741, or decrease
of per cent compared with one year
ago. The net operating income was
S10,547,118, which was an increase Of
4.9s per cent over the same month last
year.
Complete reports from the Southern
District show that the operating reve-
nues in March were S75,1S7,344, or a
decrease of 2.5 per cent, compared with
that month last year, while total
operating expenses were S65,846,562,
or a decrease of one-ffth of per
cent compared with the same month
in 1920. The net operating income for