Evening star., 1926-11-18
1926 RAIL PROFIT
WILL SET RECORD
Efficiency Plays Big Part in
Earnings of Carriers-In-
vestors Will Benefit.
BY j. G. R0YLE.
Special Dispatch to The star.


NEW YORK, November 1S.-The
railroads of the United States will
break all records for gross revenues
before the year 1926 is completed.
This became evident today through
statements made by leading railroad
executives gathered here for the meet
ing Of the American Railway Asso-
citation and the Association of Railway
Executives.
What is far more important to
shareholders, however, is that a new
record will be established for net
operating income. In other words, the
total profits will be higher than ever
before.
This has come about not only
through growth in the tremendous
volume of freight handled, although
car loadings are apparently sure TO
set new high levels, but through er-
flciency: not through increases OF
rates, but through lessening OF costs.
The physical condition and carrying
capacity of the roads are better now
than at any previous time. For the
remainder Of the year the railroad
outlook certainly is bright. The vol
ume Of coal tonnage is aiding ma
terially at present.
Net Is What Counts.
Net, not gross, is what counts on
the right side Of the ledger and the
right side of the railroad ledger this
year is expected to show net operat-
.ng income $110,000,000 higher than
for 1925, gain of almost 10 per cent.
81, ,tc &c f0 fN aAak
It is likely that between 53,000,000
and $4,000, 900 cars or revenue freight
will be handled this year. AS com.
pared with the average Of the last five
years the total freight traffic meas.
ured in net ton miles has increased at
the rate Of 1875 per cent. The total
number of freight car miles has risen
nearly 21 per cent.
That means that more cars were
handled in each train and by each
locomotive. In fact, the number or
freight locomotives in service has de-
creased 3.6 this year, but the tractive
power Of those remaining in service
rose, While the number in need OF re-
pair fell off 26 per cent, compared with
the five-year average. The list OF
freight cars in need of repairs dropped
31.5 per cent. The average load per
car, however, for the first nine months
of this year was only 27.1 tons, al
though the average capacity OF each
car has risen 44.S tons. Railroad men
attribute this light loading in large
part to the character and packing OF
a large amount Of the freight handled.
Freight Speed Increased.
The speed of freight trains increased
per cent over the flve-year average
:- {,,fo i,,nI o. voei1Ac ~
hour, while the average number of
miles each car travels day has risen
to 299 miles. Each freight locomo-
tive travels around go miles day,
which is 12 per cent better than the
tive-year average.
Railroads have cut their fuel bills
Materially. 1t now requires only 1875
pounds Of coal to haul 1000 tons Of
freight and equipment one mile. Some
of this saving was due to improved
equipment, including water heaters,
but the greater part Of the gain came
through care and efficiency Of engine
crews.
This is true of all the savings re-
corded in this record breaking year.
The carriers spent 1929 ,000, 900 in the
first nine months in new equipment
and improvements, and before the
year is ended probably will have sunk
1915 900, 900 in these items. But they
could not buy worker efficiency. They
had to win 1t. and the records estab-
lish beyond all doubt that they have
done so. AS a result the country has
been furnished with the most efficient
transportation Of freight and pas
sengers it ever has known.
Prospects for 1927 are viewed with
rose.tinted glasses by many Of the
executives now here, who declare they
see no clouds threatening prosperity
next year.