Evening star., 1922-02-12
Although the early scare of the SOL

part of local railroad executlves;
While the Association Of Railway
retary of transportation" to sit In the
Presidents cabinet, the opinion pre-.
walls now that a modification OF tnat
idea in the form presented py tne
Chamber Of Commerce would run
afoul Of politics, and that the ulti,
mate result would be negative lnsteao
Of beneficial.
Some executives stated their belfe1
yesterday that this plan represents
merely one more attempt to central
ize the government of the railroads,
and reiterated their BELIEF that the
maximum Of efficiency in transporta-
ton can best be gained by retaining
the essence of individual initiative
and keeping the carriers as free as
possible from the bureaucracy of
government control.
Pennsylvania Earnings.
December earnings of the Pennsyl-
vania road indicate that the complete
1921 account will show q surplus OF
around $15,000,000, or about per
cent, earned on the $4ss.173. 400 stock.
The result Of the final audit of the
adjustments remaining over from the
guaranty period. and the final figures
may show even closer approach to
the dividend requirements Of close to
$40. 100000.
The December report Of the Penn
sylvania. railroad proper showed an
operating income Of s3,294,022, against
a deficit Of $552,796 for the previous
December. Combined figures for the
entire system for December show
net of only $64.223. compared with
s7o2, 371 the year before. This is due
handle in the statement. The Pan
handle shows a deficit of $2.375,913.
against a net income of $1.S09,965 for
December, 1920.
The Pennsylvania owns practically
all the stock of the Panhandle and has
fixed charges by executing lease on
the subsidiary, but pending the ap-
proval of the Interstate Commerce
Commission separate accounts are
continued. Through a deficit after
charges. which apparently amounted
a marked bearing upon the income
showing of the Pennsylvania.
In face of decrease Of Is per cent
in gross for December, the Pennsyl-
vania was able to reduce transporta-
tion charges about so per cent.
tlcally in December. 1920, but by care
full management the company was
able to make a further reduction Of
II per cent in them for December,
1921. For the full year the Pennsylva-
This was drop Of $66,6s5,67 or III
per cent. from the figures Of 1920,
Transportation expenses in 1921 were
reduced $S2.SS2.185. or 2S2 per cent,
ana maintenance expenditures were
reduced by $73,s12.s03, or 27.6 per
For December alone the transporta-
/ ton ratio was below 38 per cent, com
pared with 81 g per cent the year be-
fore, while for the entire year It
was slightly above ~ per cent of
Gross eho revenue, against 51.7 per cent
for the year 1921 was S6.l per cent
against 104 per cent the year before
Ii the gross income for 1921 had been
as large as the gross for 1920. and
.1e tne company's operating ratio had re-
MAS net income for 1921 womid hsse
been s10.ooo.o00 greater than it was,
or more than $4,000 900 above The
ing paid. oe-
Bache's Review Outlook.
Commenting on the financial out.
look. Bache's Review says this week !.
l. we compare prices in the securi-
" s.r markets y ,, with the lows Of last
able advance has taken place, and II
Is also to be noted in the present
| market that, while there are davstns
day up-and-down fluctuations. these
are mainly negligible, except in some
cases case 10 tor special reasons Of liquida-
ceased to decline. This Certainty is
| an element Of assurance.
Neither In bonds nor stocks have
we had the usual later January and
early February decline. The stock
market is not being supported by the
during the long period Of Gradual
advance. except that conservative in
vestment buying has been takinp
place intermittently throughout the
whole period But the advance has
been due to professional operations
values, and such activity as is evil VI
| denced is still due to the same came.
There Is no general oversupply OF
! stocks in any direction. and this is
the case generally with merchandise.
Shelves In one industry after another
are empty. and this state Of things
! is sure to bring about more activity.
The pity is that at no time has the
general retail price been cut down.
| as would. have been justified by the
| decline in the wholesale price, with
! The retailers profit, as a rule, BY and
large. has never in all the period of
drastic readjustment thus far been
materially and generally cut down
| to levels which were JUSTIFIED and
which whole have tended to increase
| buying. This does not, of course.
| means that there are not many retail.
| ers who have recovered from the war
disease and have adjusted profits ac-
! cordingly. But the rank and file,, it
! would seem, are still adding all that
| the traffic will bear.
Political developments in this
country are unfavorable, but the
great achievements Of the. Washing
ton arms conference are perhaps al
| ready beginning to exert an influ-
ence for greater confidence. And
with more promising regularity is
confirmed by advices of returning
travellers and also by the action of
| the foreign exchanges"
Yields on 3N Victories.
Announcement of the Treasury
Department that the victory 3Z per
cent notes will be retired on the op-
tional date. June Is. 1922. at par. or
| at any time up to June Is. 1922, at
! par and accrued interest. brings up
| the interesting situation of the yield
| on a note having less than six months
to run.
On January Is the Wall Street
journal issued table showing the
il redeemed at the optional date. June
Is, 1922. On that date the closing
price was 10o.22 per cent. to yield
| 3.21 per cent. This was calculated,
by true discount, in the same manner
as a note having less than six months
to redemption. by considering the
accrued interest paid as part of the