Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-12-25
NET INCOME FOR
CLASS | ROADS IS
LARGEST SINCE 1915
Southern Carriers Show In
dictated Increase of 20 Per
Cent While Eastern Lines
Double Earnings
BY HARDEN COLFAX

Especial Correspondent to The Atlanta
Journal-Copyright. 1921
~ WASHINGTON, Dec. 22.-Class 1
railroads throughout the United
States, comprising all steam car
riers with revenues in excess of
S1,000,000 annually, will close 1923,
according to reports received here,
with net income ranging between
$950,000,000 and $1,000 100000, the
highest figures recorded since 1916.
Such income. is equivalent to
slightly more than per cent on the
valuation of the transportation
plants involved as estimated by the
Interstate commerce commission. 1t
falls somewhat below the 5 ga per
cent set by the commission as a
fair return upon the capital invest
ed, but is a much improved show.
ing over recent years. Three years
ago, or in 1920, for instance, the
carriers earned total net income of
only ST., 100000.
An appreciate number of the
roads, including a dozen or more
Of the largest and strongest, will
show net income for the year in
excess of the ga per cent fair re-
turn. They will divide the excess
with the federal treasury, share and
share alike. On the other hand, some
of the So-called granger roads, whose
traffic is composed largely of agri-
cultural products and whose lines
traverse comparatively sparseIy set
tied sections, will fail to make as
good a showing this year as they
did in 1922.
Motor Trucks Cutting In
New England railroads, also, will
fall below last years figures, it is
expected. One of the chief causes
for this is the general extension of
the motor truck in New England
as competitor of the steam rail
road. In that section the hauls are
comparatively short and the automo-
bile has cut into the -ailroads' local
reight traffic by the thousands of
ons.
Net income for the first ten
months of 1923, according to figures
compiled by the interstate commerce
commission and the bureau of rail
way economies, exceeded 1921, 000,-
900. The banner month of the year,
as usual, was, October. with net in.
come of about $102, ZOO, 900. Novem.
Der income, it is believed, will show
a decided drop from the October
figures, and income for December
will hardly be as large as that for
November. This, however, is the
usual course, due to seasonal in
crease in traffic and other causes.
Railroad executives believe that in
come will hardly touch the hoped
for $1,000,000,000 goal this year.
They incline to the belief that it
may reach 1915, 100000.
Analysis of returns to the inter.
state commerce commission by the
roads for the first nine months of
the year and preliminary returns
for October shows the spotty situa-
ton with reference to net income or
profits. The carriers of the eastern
district, as a whole, appear to have
increased their profits this year by
about so per cent over those Of
1922. OF the three regions into which
the district is divided, however, New
England shows a drop of about
thirty per cent. In the Ohio-Indana-
Allegheny region, there was an in
crease of approximately so per cent,
while the carriers in the Great
Lakes region, according to prelimi-
nary figures, will virtually double
their last years profits.
Southern Carriers Gain
Carriers Of the south show an in
dicated increase Of about 20 per
cent in their net income Here again,
there is sharp division between
the roads of the coal carrying Sec
ton, grouped in what the commits
sion calls the Pocahontas region, and
those elsewhere in the south. The
former will show little, if any, in
crease; the latter appear to have
made about 80 per cent greater net
income this year than last.
West Of the Mississippi the years
business has not left so large an in.
crease of net income as in the east
and south. All roads of the western
district, the commissions figures in
dictate, will show a total net income
about IS per cent larger for this
year than last. In the northwestern
and central western regions, the
spread between net income was larg-
err than in the southwestern region.
There it Appropriated 10 per cent
increase.
The figures show only totals,
They apply to about 235,00O miles
of main line operated by about 200
companies and systems and include
roads which failed to earn anything
"a dwindling number-with their
deficits, as we'll as the growing group
of carriers which close their books
with a profit.