Evening journal., 1922-07-22
ReuielU of Seuen Years of
Observation-Disclosures
(From Railroad Data.

to November In addition, there
was great discomfort among railway
employees during a part of the year,
and there were Unprecedented
changes both in wages and in freight
and passenger rates during the
year. All these factors tended to
upset the normal course of railway
operations during 1920.
The results OF the guarante Pc
riod are briefly as follows: Operat-
ing revenues amounted TO $685.
sos, 900 and operating expenses to
s2.944,635, 900. This represented an
operating ratio OF 1879 per cent.
There was an operating dehcit Of
s216,030, 600 and no net return on
the railroad property investment.
There were 2,O55.5sO persons en-
ployed, who received a total COM
pensatIon OF s1.S71.1ss,O This
represents average earnings per en-
ploye for the six months Of ssOs.2S'
Freight traffic amounted to 2O4.4
billion ton miles and passenger trat-
fic 24.9 billion passenger miles.
For the yeas 1920 as a-whole, the
results were somewhat similar. with
the largest traffic and revenues on
record. they had also the largest
expenses and wages, with the re-
suit that their net operating In
come fell almost TO zero.
The operating revenues OF nall
ways OF Glass for 1920 were So
17S.3SS,OOO, and their operating ex-
penses s5,s31.465.0oO. The oper-
ating ratio was 94.ss per cent. Net
operating income was only VII
662. 900, or oil per cent on proper
~ Investment In fact, the only
thing that saved the railways from
apparent ruin during 1920 was the'
fact that during eight months OF
the year, or from January l to Aug
ust 81. they were either under Fed
eral control. or were receiving.
definite guaranty of net income from
the Government.
The number of employees in 1920
was the largest in the history Of the
railways, the average number dur
ing the year being 2.012.706. The
payroll increased more than 1884,
900. 900 over the AVERAGE of the
Federal control years of 1918 and
1919, and amounted TO s3,662, 544,-
600. Annual earnings per man in
creased TO S1,s19.71. This was an
increase of 1852 per cent above the
Federal control average, and more.
than double the average OF the test
period.
Fuel cost the railways in 1920
which was s1S5, 00O,-
600 more than during Federal con-
troll and 92,Oo0,OOO more than
during the test period. other ma
terials and supplies cost s1,064,-
ss5, 900. This was ss44,OOGOOo
more than during Federal control.
and s605, 100000 more than during
the test period.
The traffic was the largest on rec
ord: 410.s billion ton-mhes and
ass billion passenger miles.
Fourth Stage-Sept. 4, 1920, TO Date
The results OF the last four
months OF 1920 ere included in the
operations OF that year, which has
been discussed above.
The year 1921 showed a great de-
cline in traffic and also In revenues,
in spite OF the higher freight and
passenger rates which were in effect
during the whole of 1921 compared
with only four months OF 1920. The
freight traffic measured in ton-miles
was lower than in any year since
1915. while the Passenger traffic
IN passenger miles was
over than for any year since 1915. |
Under these conditions the nall /
ways took hold of the situation and |
themselves with efficiency |
% the trying conditions. Their OPP |
,rating ratio was reduced from !
,4.3s per cent in 1920 to s2.74 per
,ent in 1921. They reduced the
lumber of their employees by $751;
100, and their total wage bill by
1852, 900, 600. The average earn
ngs per man were reduced to ST.
1857, which was due partly to
wage reductions made by the
Railroad Labor Board on July 1,
921. and partly to greater oper-
ting efficiency, under which over
ime and other excess payments
we're reduced.
The net railway operating income
n 1921 was s59s, 0O6. 900, or sos
'er cent on the property invest
nent Small as this was. II was
etter than the average earned dur
ng the period OF Federal control.
nd much better than during the
ear 1920.
The first five months of 1922, TO
fay 81, have shown a further i'm
rovement in net railway operating
lcome. which average 4.S6 per cent
educed to an annual basis.
For the total period OF 81 months,
rom September, 1920. 10 May, 1922,
he average rate OF return earned
y the railways has been s.42 per
emit per year.-Railroad Data, July
1.