Evening star., 1925-11-14
ARTICLE vi.

Rail transportation, next to agri
culture, probably is the poorest pay.
! ing Investment, taking it as a whole
in the United States. Possibly. the
statement should be changed to put
| transportation on the bottom. The
Governments figures indicate that the
, railroads of the United States, taking
them as Il whole and including elec.
trio lines. returned net profits of not
10 exceed 1l2 per cent on the invest
ment during the prosperous year of
1928
Four subdivisions are made in the
Governments presentation of net earn.
lngs by the transportation agencies of
the country which are linked, in the
showing. with other public utilities.
The first of these subdivisions. cover.
ing rail transportation, covers returns
or 1,643 corporations. OF these GAP
were steam railroads, reporting net in
come of $626, 172 1868 for 336 comma MES
and deficits totaling $36,S31,748 for 3O6
companies.
The steam railroad, from that show.
ing. stood an average chance of little
better than 80 per cent to make money.
Electric railroads reported to the
number of 1876, but less than half of
the number, or IT'S. made a profit.
Ihelr net income totaled $50, 59S, 1878.
The 22l electric railroad lines that
lost money reported deficits running
to an aggregate of S19,66S,845.
All other railroads, whose main bust.
ness was not precisely defined and
which, for that reason. We're not in
cluded with either steam or electric
lines, numbered COS. OF them about
two out of three, or 402, made net in
come totaling $S2 1862, ,730, while 2O3
lost total of s5,5l2,3 $50.
X x K *
Taking rail transportation as a
whole, the net income totaled $685.
133, ,S71 while deficits aggregated s62,.
0l2,943, striking a net of about S57s..
100000 for the entire group of 1,643
companies. When one considers the
inyeStment-ClasS ! carriers alone
having total investment of approx
mately $4,000, 600, ,000-the utter in.
adequacy of the return is strikingly
shown.
The foregoing companies are closely
regulated by at least three different
governmental units. Federal, State and
city. The figures would tend to indi-
cate that there is decided brake on
earning capacity when the Govern
ment steps in to the extent it has done
in the case of rail transportation. In
dicated returns on investment are far
below those indicated for certain other
groups of enterprise not so regulated.
X X X
Coming TO the second group classi-
fed under the general heading of
transportation. one finds the water
lines. The utter stagnation of Amer
lean shipping in 1923 when almost
every other kind of business was
making good profits. is disclosed hv
a Cursory examination of the figures.
Take ocean lines. transoCeanic and
coastal, for instance. SiXty-fiye cor.
porations reported. OF them only IS
made any showing whatever of net in
come and their total profits ran to
only $l,90l.550, or little more than
Sl00,0 900 for each company. On the
other hand. At such companies ran up
a deficit totaling Ss,520163.
Lake, sound, bay and river lines
Jared somewhat better, 104 reporting
profit out of a total of 157 corpora.
tions. The profits totaled SI3 .6S5. .539.
Fifty-three such corpora tions operated
at a loss, their combined losses mount.
ing to s957.sS1.
Eight marine salvage and wrecking
corporations out of Is made money.