Evening star., 1925-12-31
Costs Cut Sharply.


per cent and the Department OF
Labor'S 8 per cent.
Costs Cut Sharply.
The extraordinary profits which ac-
crued to business came rather from q
cutting of costs than a boosting OF
prices. There was a distinct trend
toward a policy of quantity produc-
ton.
More sales at smaller margins of
profit" was the watchword in a score
of industries. That policy unquestion.
ably was responsible for the success
achieved by the automobile trade.
Production in nearly all lines was
stepped up, but individual worker eff
cheney prevented costs from rising in
the same ratio. The individual work er
did more and better work in 1925 than
ever before. and he was aided by in
Stallation of new and improved ma
chinery. Some diScord resulted, how
ever. from the experiments in cotton
mills with multiple loom operation.
Electric Current Output.
Increased efficiency of workers was
paralleled by more scientific organiZa-
ton and management of production
and distribution. Cheaper power play
ed star roll. Electric power output
mately $4,000 900 kilowatt hours. as
against 59,000.0O0 in 1924. Hundreds
OF millions of dollars went into new
steam and electric power plants. The
gas companies shared in the general
expansion. Many companies reduced
their rates for current or al least re
distributed them 50 that power for
industrial purposes became less eX-
penSiVe
Consultations and mergers were
instrumental in reducing overhead eX-
pense. The trend toward such alb.
sorptions was marked in the bakery
industry, where "A new S400 900. 900
company was formed; in drug store
chains. in ice cream factories. salmon
canneries and other industries. Rail
mergers seemingly are bound to come,
but few got beyond the preliminary
stages in the last twelve-month.
Transportation Triumphs.
IL was the click of the car wheels
and the rumble of freight trains that
furnished the music to which pros
peritp marched. Without the aid Of
the railroads. buying and distribution
policies, which brought profits, would
have been abandoned. The roads cut
the time OF transporting freight in
the farmer less to get his crops to
market, not through lower rates, but
better handling. Equipment was
in splendid condition and the roads
put more freight in less cars, had less
delay in loading and unloading.
hauled more cars per train and at a
less cost per train mile than ever
before. They We're aided materially
by the shippers regional conference
boards.
In consequence, earnings for 1925
We're larger than for the previous
record year. But since 81 900 600 ,0OO
had been added to capital investment
the returns per dollar of capital did not
break records. However, net operat-
ing income showed a gain of about
II per cent. as compared with last
year. Net profits on invested capital
showed a gain of per cent. Gross
revenues for the first three-quarters
of the year were over $135 900 900.
Freight car loadings were at the rate
of 100000 a week for months, and
for the year totaled approximately
So $50 900 cars.
Motor Transport Business.
Rubber tired transport became a
big factor in the movement of freight
and passengers. For time, short
hauls were thought to be the province
Of motor bus and truck. But as the
year drew to a close, regular routes
and schedules were adopted over
thousands of miles of highway.
Railroads and traction companies
either adopted the bus or fought it
The former policy was found far the
more profitable. Approximately 520, ,O0C
trucks were produced. They were in
keen demand. Bus manufacturers
had all they could do to fill orders
Buses and trucks turned the trend
Of city migration into suburban sec
tions which never could have been
developed without this method of
TRANSPORTATION.
There is no question but that the
street railway companies have bet
tered their positions. They have
made improvements which have gone
unmade for years, have secured fare
increases in many cities and have done
additional financing. Still, their gen
eral situation, except in exceptional
cases. is no better than fair.
Big Coastal Traffic.
Some shipping men were too busy
to shake their heads sadly over the
condition of the merchant marine. A
heavy, but not record-breaking volume
Of coal, iron ore, grain and other prod
ucts were carried on the Great Lakes
before navigation officially closed. The
Mississippi-W Warrior barge line, oper
ated under Federal control, was over
whelmed with shipments for which
present equipment was inadequate
Traffic through the Panama Canal wa.
heavy. The real feature of the indus
try was the boom in coastal shippine
due largely to the expansion Of Florida
trade. Congestion of rail lines II
counted on to divert q large amoun'
of both passenger and freight traffic
to coastwise vessels for the next si1
months. The situation on the foreign
trade routes for American ships has
shown comparatively little improve
ment; the Shipping Board situation
with its hundreds Of unsold, unused
ships, is unsatisfactory, and failure OF
varying interest to get together on {
program for a real American mer
chant marine has been disappointing
Record Tourist Movement.
Tourist traffic on railroads ant
, steamships has been unusually heav.
this year. Auto tourists alone, it 1,
conservatively estimated by State roat
authorities, spent more than 81 500,
000, 900 on their trips. American
tourists abroad left some $500. ,00'
behind them and the larger portion
travelled in ships under foreign flags
Much Of the success Of the 1925 Amer
lean tourist season was due to per
sonally-conducted tours, which gained
decidedly in popularity.
The cities drew as many from th'
broad open spaces" as the scenic ap
peal did to the less thickly inhabited
parts Of this country. Hotels wer'
| full in nearly every section despite thu
number Of hostelries. which were bull
and equipped during tho yeaa Price