Evening star., 1922-12-31

greatest encourage Although the frelSht
rate level is now about 10 per cent below ina.
of 1921 and 12 per cent below the peak OF
1920 the increase in traffic in 1922 was sum-
ciently great to make the total freight revenue
greater than in 1921 by nearly 10 per cent
Except for coal, every class of frelsht uamc
showed a marked increase over 1871. Inc
movement of grain and of merchandise goods
broke all records. Live stock movement was
10 per cent greater than last year. forest
products II per cent greater, and ore 20 per
cent greater.
Especially marked the Improvement OF
the last four months of the year. Reference
has already been made to the heavy move
ment of coal in those months. The frelght
tonnage of the period greater than In the
same four months of any previus year, even
1890. November and December have made q
remarkable showing the combined tonnage OF
the two months being 80 per cent greater than
for the corresponding months of 1911
The improved railway situation should con-
tinue well into the coming year. If nothing
else the traffic momentum of the last four
months Of 1922 will carry into 1923. Coal
movement will be heavy until April. for the
shortage growing out of the coal strike mas
not yet been made up. The other heavy move
rents show only partial signs of the usual
slowing up at this season of the year. General
business condi tions good Building per
mits which mean construction work for the
next six eight months. are being recorded
in almost maximum volume. The bumper
crops Of 1922 being marketed at generally
higher prices than last year, mean a purchas-
ing power for the farmer that is being trans
lated into a heavy demand for manufactured
products. Unemployment is reduced to a mini
mum. Everything points to continued pros
perity in 1928.
All this will mean more traffic for the rail
har unforeseen industrial disturb
ances. such as renewal of the bitumnous
coal strike next April Increased traffic will
bring greater railway revenues The traffic
will be more efficiently handled for the rail-
ways have this year ordered twice many
freight as in 1921 and twice as many
locomotives.
Operating expenses may show some in
creases. although. on the other hand. the rail-
ways will hardly be forced to undergo another
nationwide strike. with its tremendous at
tendant costs. Railway labor's experience
with such a strike in 1922 will make them
wary of another such venture within the next
twelve months.
Net railway income should show further
increase in 1923. 1t should. in fact. be great
as 5 per cent on railway value. if not greater.
In this connection it should be borne in mind
that the Interstate Commerce Commission, in
fixing the present levels of freight and pas
senger rates. expressed the hope that the rail-
ways would. under those rates. earn not less
than So per cent, which is the flair return"
fixed by the commission under the terms of the
transportation act The railways have never
earned that return since the act became law.
In 1920 they earned fraction of per cent.
in 1921 33 per cent. and in 1922. 4.05 per cent.
1t is now time for their earnings to exceed 5
per to come. indeed. within sight of the
goal of 5a4 per cent With the improved
ditions of 1922 to hearten them. and with the
promise of continued improvement the pos
sibility of reaching that goal in 1923 has be-
come something more than pleasant dream.