The Washington times., 1923-11-01
COOL GE
OBTAINS
OA ia
Committee of Officials Headed
by Rea Discuss Freight
Rates at White House.
By WILLIAM HARD.

The railroads of this country
viii this year earn probably
$6O0,00O,000 available for divi-
dends, which is q larger sum
than they have earned available
Cor that purpose in any year
since 1911 except the year 1916.
Such is the prospect which lies
before them, while today a COM
mittee of their highest officials,
headed by Samuel Rea, president
Of the Pennsylvania, meets Pres
ident Coolidge at the White
House. to discuss the possibility
Of freight rate reductions.
What Figures Disclose.
- Interpreted by the enemies of
The railroads, the figures show that
the railroads are disgracefully -ich
and that drastic reductions of freight
rates in certain territories are not
only possible but morally neces.
narY.
According to the friends of the
railroads, on the other hand, the
figures show only that the railroads
perhaps make it possible presently
TO revive in America the almost lost
art Of persuading investors to be
bold enough to buy new issues OF
railroad stocks.
For many years now. 1t is point
ed out, our investors have been will
Ing to buy railroad bonds and other
evidences of railroad indebtedness,
but they have been almost totally
unwilling to buy any new railroad
stocks They have been willing
that fs-to become creditors Of the
railroads but they have been unwill-
ing to take any new steps toward
beeoming owners of them with all
the ownership risks.
The present income of the rail-
roads, it is claimed, is not larger
than necessary. in order to bring
people back to their old way Of
buying new issues OF railroad stocks
for new railroad activities and de-
velcpments. aFla &c
In any case q fun analysis Of re-
cent railroad financial returns
shows that today, in spite Of bad
conditions In Europe which were
supposed to make prosperity in
America impossible. and In spite of
the agricultural depression which
likewise was supposed to spread a
blight over the whole country, the
railroads in fact have been enjoy
ing e. run Of good times virtually
beyond precedent for general net
results In revenue and in profit.
Exceed Cummins Limit.
When the rental was fixed which
the Government paid to the rail-
roads during the war, Senator Cum
Minis Of Iowa, now chairman Of the
interstate Commerce committee Of
the Senate, said that It was so high
that 1t would Shock the moral
sense Of mankind" High as it may
have been dn Senator Cummins'
view), the income Of the railroads
this year will be higher.
The net operating income Of the
railroads this year, according to the
NEST authentic calculators in Wash
fngton, will go beyond one billion
dollars sum never before ex-
coeded except in the year 1915.
Net operating income in the five
years from 1911 to 1915 inclusive
was at the average of seven hun.
dred and fifteen million dollars
In 1916 it leaped to one billion
and forty million dollars. Then It
began declining until in 1920 II
almost touched bottom and reached
nothing at seventeen million dol
lars. Last year it revived to seven
hundred and sixty million dollars.
This year It apparently will sur
pass last years level by an in
crease which VIII lift it to a level
probably at least one-third higher
Turning to the sums available for
dividends, which are reached by
subtracting all fixed charges from
al net income. the following show.
ing Is noted:
Above Pre-War Rate.
In the three years preceding the
taking over of the railroads by the
Government during the war the rail.
roads averaged total of $51S 900 900
available for dividends. 1t is authori-
tatively calculated here that they
viii this year exceed that sum by 2t
least Is per cent.
It would appear accordingly that
they are at least restored to where
they were in those three years, which
were better years as II happens, Than
AMERICAN BEAUTIES
America spends about so million
A-I1-~