The Washington herald., 1922-09-11
B. & 0. REPORT.
Freight Revenues Show
Decrease, Attributed to
Industrial Decline.


ident and directors OF the Baiti-
more and Ohio Railroad Company
submit today to the stockholders
of the company. marks the ninety
NTH year Of the railroad COM
pany's existence.
1t, is explained that the busi-
ness depression, which began In the
fall Of 1890 and continued through
out The year. resulted In a very
marked decline in the trafhc han
died. while the loss of revenue
due to the decline in the volume
of trafic was partly Offset by the
increase In rates and charges made
effective August zs. 1890, the total
revenues were less than anticipat-
ed because OF the numerous rate
reductions made throughout the
year 1921 on certain commodities.
particularly those relating 10 ag-
riculture. building operations. road
construction. etc. such as grain
and grain products, lumber, iron
ore, sand. gravel. coal. etc, which
commodities constitute a large por-
tion Of the company's trafiic. In
these circumstances It became nee
essary to curtail the expenses 10
the lowest point consistent with
safe and eficient operation. The
reduction in revenues was In part
offset by reduction in wages au-
thorized by the United States Rail-
road Labor Board and made ef-
fective July /. 1871, and also by
some decrease In the prices of ma
teriaI and fuel.
The operated mileage Of the Bal
timore and Ohio Railroad Is 5,1s7
miles. and including 21s miles
of its subsidiary companies, the
total first main track mileage OF
the system Is 5.405 miles.
The company's equipment, valued
at s157.7s3.123. consists of 2.ss3 To-
comotives. s4.s32 freight train cars
1900 passenger train cars. 2.6as
work train. cars and other work
equipment, 1s7 tugboats, car floats
and other floating equipment, and
miscellaneous equipment Of vari.
Gus kinds.
Freight revenues for 1921. in conn.,
parison with 1920. decreased $685.
2ss,416. or 1899 per cent. reflect
ing in part the decline In indus
trial activity which began in the
fall Of 1920 and continued through
out the year 1921. The extent OF
the decline in freight trafic may
also be measured by the revenue
tons carried. which for the year
1921 amounted to 7l.536.702 tons
compared with 101,s24.520 tons in
1920, a decrease Of 2s.ls per cent
As q further indication Of the ex-
tent of the decline in business. II
may be mentioned that the reve-
nue. tons carried one mile decreased
from 20.s32.667.l12 tons In 1920 &c
1ss,727.7o2 tons in 1921, or 3z.17
per cent. due to a shorter averagt
haul as well as a lesser volume
OF tonnage.
In comparison with the year 1890
the decline in tonnage by COM
modities indicates a decrease OF
1910 per cent in products OF agri-
culture. 30.44 per cent in products
of mines. 31.05 in products OF for
est, and 34.5s per cent In manu-
factures and miscellaneous.
Passenger earnings for 1921 de-
creased s1.s52.33e. or 5.e4 per cent
below 1890. There were 4.325,42
or 1906 per cent. fewer passen-
gers carried. and 167,795.712. OF
1888 per cent fewer passengers car.
. ried one mile per mile of road
in 1921. when compared with 1920
Total operating revenues for the
year were s1ss.622,372. of which
1878 per cent was from freight
I4.77 per cent from passenger, 1.3s
per cent from mail, LOS per cent
from express. and 404 per cent
from all other revenues. The de-
crease in gross revenue for the
year compared with 1920 was s23,'
322.707. or 1897 per cent
Maintenance Of way and structures
expenses during 1921 were s24,617.'
sos. a decrease as compared with
1920 of ss.441,474. or 1883 per cent
and maintenance of equipment ex.
penses for the year were S45.12e.'
s57, decrease when compared
with the previous year of S2S,742..
s5s. or 34.47 per cent. Total main
tenance charges for the year were
ss9.747.65. and constituted 41.90 pei
cent of all operating expenses and
S5.l2 per cent OF all operating rev.
e,Iues.
Transportation expense, for th'
wear were ss5.4s1.Sss. a decrease a.
compared with 1920 of s2s,S22.722
,r 24.Se per cent, and comprised
,:.35 per cert Of total Cperatins
:xpenses ano 1904 per cent Of to-
cal operating revenues.
All other expenses for the veal
were sll.22T.973.
Total operating expenses fo- 1927
wcte sl66.457.G24. a decrease undeI
1920 of S59.9i2.2sS or 2h.iS per cen
compared with 4 decrease in oper
ating revenues CT ssS.332.O7o OF 14.3'
per cent The ratio Jf operating
expenses to operating revenues wal
SS.Sl per cent in 1921. and 97.6i
per cent in 1920. a decrease of 1885,
per cent.
The net income for 1921 from
property used in transportation
service, or Net Railway Operating
Income" as II is defined in thu
transportation act was s21,S53,s46
equivalent to 800 per cent on thu
investment in property aggregat
ing s7O7. .O22.s51. devoted to trans
portation service, or about one