The Washington herald., 1921-06-13
OPERATING INCOME
In APRIL Less THAN
PRECEDING PERIOD
C. C.'s Returns Indicate
Decline of 1,494, 900
Over March.
2.1S% ANNUAL RATE
Carriers Short $51,2S6,000 of
Amount Contemplated
By Act.

The net operating income in April
Of the railroads Of the United States
totaled s2s,2o1.ooo. or sI,is4.oo less
than IL was in March, according to
reports Just transmitted to the in
terstate commerce commission by
the carriers.
On the basis Of the tentative val
uation fixed for rate making pur-
poses by the commission under the
transportation act. this would be at
the annual rafs of return of 2.fs
per cent compared with ESQ per
cent In March. The carriers in
April fell short ss1.2ss.ooo. or ap-
proximately 81 per cent Of earning
the amount contemplated by the
act The tabulations are based on
reports received from 2o1 railroads
representing a total mileage of 235,-
160 miles.
Comparison.
Comparison of the reports with
those for March show that the rail-
roads during April made still
greater cuts in their operating ex-
penses but that their operating rev.
enues were also less. The ratio of
operating expenses to revenues in
April was 1914 per cent compared
with S7.19 per cent in March. Re-
ductions compared with April. 1890,
in operating expenses were report
ed in all districts.
Reports show that the total op-
Grating revenues of the railroads of
the country in April were s433.1H,-
900. or an increase of TT per cent
over those for the same month last
year. while operating expenses were
S375,752.000. or a decrease Of So
per cent under April. 1920. The net
operating income was S2s.201, 900
compared with an operating deficit
of sz3,76T.0o0 in April, 1920.
In considering comparisons with
April last year. however. considera-
tion must be given to the fact that
railroad operations were tied up
that month by the switchmen's out
law strike.
Eight Months Period.
During the eight months since
September 1, 1920, when the guar
anty period expired. the net oper-
ating income of the carriers has to-
tailed s27s. .00s,00o. which would be
at the annual rate of return of 2.41
per cent on the tentative valuation
of the railroads. This sum, how
ever, is s414.253.o0o under the
amount contemplated to be earned
from the rates established by the
commission.
On the basis Of the net operating
income for April. carriers in all
districts as in previous months fell
far short of earning q return of 5h
or per cent. In the eastern dis
trict the net operating income was
at an average annual rate of return
of 2 per cent, in the southern, 3.41
per cent and the western, 2.02 per
cent. ..-
Complete reports frcm the eastern
district show that the total operat-
ing revenues of the carriers there
was s1s6.76s.000. or an increase of
15.5 per cent over that for April,
1920. while operating expenses were
S170. 0.7S5.000. or a decrease of 6.S per
cent compared with the same pre-
vious month. The net operating in
come was s13,126.000 or compared
with an operating deficit of s24,057,-
900 in April. last year.
southern District.
With all roads reporting, the op-
Grating revenues for the southern
district were s72,16l 900, or an in
crease of 81 per cent over those for
April, 1920, while operating expen-
ses were s62,419,00r, or a decrease
of 2.s per cent compared with one
year ago. The net operating in
come was s5,562,oo0, or an increase
of 7s.5 per cent. that for April last
year being only s3,09e 900.
The western district reported op-
Grating revenues as s164,252.000, or
an increase of 1.6 per cent over
April, 1920. and operating expen-
ses as s142.54S.0oo. or a decrease of
SIS per cent compared with April
last year. The net operating in
come was s10.513.0 compared with
a deficit of s2.s0s.ooo during the
same month in 1920.