Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-06
ECONOMIES BUILD
RAILROAD PROFITS.
Efficiency of Workers Has
Great Deal to Do With
Their Good Showing.
Ry J. C. ROYLE.
;pscial Dispatch to The Star.

Special Dispatch to The star.
NEW YORK, August 6.-Spiendid
condition of equipment and increased
efficiency of workers are the factors
which yielded the class railroads
OF the country net operating income
totaling $494,866,766 in the first half
of this year.
Gross revenues, of course, in
creased, but SO have operating costs.
1t has been ability through efficiency
of workers and equipment to keep
the increase in costs below the In
crease in revenues which resulted in
gain OF earnings of $55,468,360 Tor
the carriers, as compared with the
first half of 1925.
Operating ratio, that is, the rela-
ton of net revenue to gross income.
has shown steady betterment in
the last two years, and this improve
ment has been specially noticeable
this year. Empty freight cars have
been returned to owners with re-
markable dispatch. Traffic has been
higher than ever before in the his
tory of the United States, yet there
has been almost complete absence
of delay due to car shortage except
In isolated cases in the wheat ana
fruit belts.
Analysis of the figures for the class
/ roads for the first half OF TINS year
proves conclusively where the pronts
came from. Gross revenues totaieu
S3.02S.56O, 1851. q gain as compared with
1925 Of as per cent. Operating ex-
penses aggregated $2,290, 1851 1888, a
gain over last year of only 2.7 per
cent. Expenditures for maintenance
amounted to $1,054 ,005. 103, and 1t was
money well spent.
Rut the real factor in the situation
was the increased efficiency OF the rail-
road workers. Never has there peeh
such thorough cooperation between
executives and working forces as ex'
lists at present Old misunderstand-
ings have been wiped osit in hundreds
OF cases and shippers are reaplng
benefits in the form of prompt de-
livery.
Expansion In the ordering or treignt
cars and locomotives continues 10
make itself evident on every hand.
Iocomotiye orders in the last month
were larger than at any time Since
the war. For the first half year loco
motive orders reached 1873, as com
pared with AIS for the corresponding
period a year ago. Freight car orders
totaled 41,431, as compared Wiln
35.957 in 1925. The locomotives anu
cars have not only been more numer-
Gus but they have been larger. En-
gines have been developed with ire
mendousN tractive power and the re-
suits are evident in the traln-Inlie
revenue. Freight cars are now pelhg
built which carry at least 20 per cent
more tonnage than the largest cars
operated five years ago.
Diesel Electric Engines.
The Diesel electric and gas electric
locomotives have done much to reVolu-
tionize short haul traffic OF the main
carving systems. They have replaced
the steam locomotive on many runs,
giving increased efficiency and lower
GENERATING costs. During the last SIX
months there has been decided tend
ency toward adoption of the motor
bus as an auxiliary by the railroads
instead Of fighting it as a short-haul
competitor. The Pennsylvania lines
have Just announced intention or
entering store-door delivery of freight,
and the experiment will be watched
with the utmost interest, since the
road plans to make rates on a basis
of which shippers pay the cost OF this
service.
Practically the only unfavorable
incident in the railroad half year was
the refusal Of the Interstate Com
merce Commission to grant a per
cent rate increase to the Western
roads. But the effect of this decision
was largely discounted in advance,
since the result was anticipated in
many quarters.
Crop prospects and the possibilities
of industrial activity throughout the
year give a bright outlook for the
railroads in the next five months.
Not all, the carriers operated at a
profits in the first six months, but
those which did not in most instances
blame 1t on defects in their recapital-
ization structure rather than to COM
mercial and industrial lethargy in
their territories.