Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-09-03
SOUTHERN OUTLOOK
IS HELD TO Be GOOD
Analysis of Roads July Re-
port Indicates Increased
Rail Traffic.

Although Southern Railways traf--
fic for the month of July was behind
the record levels of a year ago, Case
Pomeroy & Co, in an analysis of the
report for July and for seven months
express the belief that "the balance OF
the year will bring more general &C
tivity and increased railroad traffic"
During most of 1926, said the re-
view, the traffic had expended at g
rate considerably in excess of the
normal trend Of growth, and the de-
creases of the present year to date
have been about in line with expecta-
tons, especially in view of the slacken
ing in general business in the South
Cotton selling at the present level, il
was pointed out, will return profit tc
the grower and enlarge the genera
purchasing power throughout the cot
ton growing States.
After allowance for all fixed charges
deductions and preferred dividends, the
estimated net income available for the
common stock was equivalent to Z!
cents a share, as compared with $14t
a share in July, 1926 For the seven
month period estimated earnings were
equivalent to $6.05 a share, as com
pared with $3.50 a share.
Gross Revenues Decline.
Southern's gross operating revenues
showed a decided falling off for July
amounting to $11, 900, as compared
with $12,942,000 in July, 1926, a de
crease of per cent. The sharp dror
in gross revenues brought about ar
increase in the transportation ratio tc
1888 per cent in July, as against 32.1
per cent in July of 1926.
Figures of the report show that fol
the first half of 1927 passenger reve
nues decreased Ills per cent below the
first half of 1926, while passenger
train miles decreased only IL per cent
Passenger revenue per train mile
showed a decrease of 10 per cent. Ii
favorable contrast, freight revenues
for the first half of the year decreased
only IA per cent, while freight trair
miles were decreased So per cent
This means that as freight revenues
fell off the movement of idle freight
cars was quickly reduced, thus cut
ting down operating costs. The re
suit is shown in the fact that freight
revenue per train mile actually in
creased Az per cent during the hall
year. Total revenue per train mile
for both passenger and freight was
exactly the same in the first half Of
1927 and 1926. Thus the economies
brought about in freight operation
offset the losses incurred in the han
ding Of lightly patronized passenger
trains.
Car Surplus Smaller.
Class / railroads on August Is had
9,074 locomotives in need of repair OIL
14.9 per cent of the number on line
according to reports filed today by the
carriers with the car service diNSior
Of the American Railway Association
This was an increase of 539 com
pared with the number in need of re
pair on August l, at which time there
were $685., or ii per cent.
Glass l railroads on August % had
23S,655 surplus freight cars in gooG
repair and Immediately available fol
service.
This was a decrease Of $685. cars
compared with August Is, at which
time there were 245,231 cars.
Surplus coal cars on August % to
tailed 65,72S, a decrease of 402 within
approximately a week, while surplus
box cars totaled 135,735, a decrease
of 4,554 for the same period.
Will Study Insurance Trusts.
Wade H. Cooper, president of the
Continental Trust Co., has gone tt
New York, where he will make a spe-
cial study of insurance trusts.
Owners of Potomac Electric Power
Co. general and refunding 6 per cent
gold bonds. series B, due 1853, have
received notice from the National City
Bank of New York as trustee that
ego hoc honY
at 1919.
William M. Seay, manager Of the
Federal-American Co., will return
from vacation Monday.
From present indications the money
value of the 1927 cotton crop will be
a record for recent years, according to
Caldwell & Co., Southern investment
bankers.
Based on recent prices and an esti-
mated yield Of 13,500,O00 bales, the
1927 crop should be worth approx
mately 100000. the firm pre-
diets. Since May cotton prices have
advanced approximately $40 a bale,
which will make a total increase of
approximately 100000.
Bank Clearings Gain.
Bank clearings this week at all lead
ing cities in the United States OF
$8,705. 1856, 900 exceed those of a year
ago by 10 per cent, according tC
Dun's Review. The increase con
tinues mainly at New York. where
clearings Of $3.50, 100000 for the week
show an increase over last years OF
12.1 per cent. At the leading outside
cities, the total is $3,089, 1856 900, a
decline of 10 per cent, and, as in re.
cent weeks, small losses predominant
at most centers. There are, as usual
a number of exceptions this week
gains appearing at Boston, Baltimore
Cleveland, Omaha, Minneapolis, New
Orleans, San Francisco and some
other cities. On the other hand, i'm
portant cities continue to show de.
clines, among them Philadelphia,
Pittsburgh, Chicago, Detroit, st.
Louis, Kansas City, Atlanta, Portland
and Seattle.