Evening journal., 1922-07-22


through four distinct stages. From
1915 to 1917. the first stage, the
railways were operating their own
properties, with only such economic
disturbances as were produced by
the entry OF the United States into
the war. in April, 1917.
From January 1, 1918. to Feb
ruary 20, 1920. period of 2s
months, the railways were operat-
ed by the Federal Covenant un-
der the terms OF a presidential proc
lamation issued on December 2s,
1917. supplemented by the provi-
slons of the Railroad Control Act
OF March. 1918. This was the sec
ond stage.
During the six months from
March /, 1920, to August 81, 1920,
the railways were again operated
by their own arrangements. but
were subject TO those provisions OF
tn Transportation Act OF 1920 which
fixed a Government guaranty for
the period.
This was followed by the fourth
and final stage. which has existed
from September /, 1920, to date,
representing renewed private oper-
alton of railways without guaran-
tee. but under the provisions Of the
Transportation Act OF 1920.
First Stagc-Test Period.
The DafIroaH EOntroI dNa1
tho three years from July I, 1914.
TO June 80, 1917. as the so-called
Test Period. on the basis OF which
the compensation which the Gov
eminent paid the railways for the
use OF their properties while un-
der Federal control was adjusted.
During this period the railways
of Glass earned an average of s3.-
45s,312,0OO annually; their operat-
ing expenses averaged S2,37S.210,-
900. Their operating ratio. or per-
centage of revenues absorbed by
expenses, was 6S.77 per cent. After
deducting taxes, equipment pay
'ments. joint facility payments. etc.
the net railway operating income
was sS76,551.000, or SIS per cont
on their investment in actual rail-
road property and equipment OF
s16,s35,24e.OOo.
The number OF railway employees
during this period averaged 1915
951, their annual payroll was ST.
464,375,0 600, and the average an
nual earnings per man were s906.2O.
For fuel the railways expended
each year s2S0,537.0O0. and for
other materials and supplies S459,-
$4,000.
The average traffic per year was
1898 billion revenue ton-miles, and
35.1 billion passenger miles.
Second Stage-FederaI Control.
For the purposes of this sum-
mary the results for two calendar
years 1918 and 1919. have been
averaged 10 represent the period OF
government control, although there
were two months In 1920 which are
not here included.
During these two years the an
nual revenues OF the railways of
Glass I were s5,012.S74.O0O. while
their operating expenses were s4,-
100. $4,000. Their operating ratio
rose from 6s.T7 per cent during the
test period TO s36 per cent during
Federal control The net railway
operating income was annually
s546.777,OOO per year. representing l
2.sS per cent on their property in
vestment. I
The number OF employees rose
from 1,615,951 in the test period 10 |
an average of 1877, 400 during Fed
eral control. This was an increase |
OF 261,54S, or 1872 per cent. The
annual payroll was s2.72S.471. 900.
and the average annual earnings
per man were s1.453.25. Thus total
increased S6.3 per
cent over the test period, while av-
erage earnings per employee in
creased 60.4 per cent.
Railway fuel cost S4S7,2OO, 600
per year, and other materials and
S72O.675.O00. These rep
increases over the test
period of 1871 per cent and Sos
per cent. respectively.
The average traffic per year I'M
der Federal control was 3S4.S billion
and 44.5 billion passen-
ger miles. This was an increase
over the test period of 1872 per cent
In ton miles and 26.S per cent in
miles.
Third Stage-Guaranty Period
The year 1920 was abnormal for
4 number of reasons. In the first
place. It comprised two months Of
Federal control, six months of the ;
period. and four months J
IF renewed private operation. In
he second place, the railways re-
'eived back their properties in a J
leteriorated condition as the result i
u the war service: were confront I
ID with a period OF traffic conges-
ion on March ! went through a I
erious outlaw strike in April, May {
md June, and were forced to han
lie the largest traffic in their his {
org during the months of August