Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-27
RAILROADS REPORT
INCOME SHR|NKAGE
Trend of November Earnings
Indicates General Decline
of rs Per Cent.
BY CHARLES F. SPEARE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, December 27.-The
trend of November railroad earnings,
thus far reported, is in line with an
ticipations based on the car loading
figures, which had shown substantial
decreases during the month compared
with year ago, although relatively
good results when measured by seasonal
changes:
Preliminary estimates of the Novem-
Der shrinkage in net operating income
range between IS per cent and % per
cent. This compares with a trifle over
% per cent in Ostober. when the net
earnings of all the roads were about
$4,000, 900 less than in the same period
of 1929.
Estimate Of Losses.
Some Of the carriers last month had
a smaller percentage of net losses than
the average for the previous 10 months
With others, the decrease for November
was greater than it had been for the
average from January l to october 81
This reflects fluctuations in traffic that
are of a seasonal type and is not in
dicative of general tendencies.
When the final figures for the IL
months to December 81 are available
it will probably be found that Ameri-
can railroads have suffered this year
a loss in excess of Is per cent in their
net operating income, or between $3.50 =
000, 900 and $500, 000O 900. Evidence OF
their financial strength is given in the
absence of dividend reductions in the
face of the most serious decline in
earnings available for interest and divi-
dendS in many years.
From the dozen or more November re-
ports that have so far been published,
and which include several of the
largest systems east and west of the
Mississippi River those of the Penn
sylvania. New Haven, Norfolk & West
ern, Union Pacific, Southern Pacific,
Boston & Maine, Baltimore e. Ohio,
Frisco and Kansas City Southern have
been selected to illustrate the nature
of the changes in earnings that have
recently taken place.
Pennsylvania Income.
Last month the net operating income
of the Pennsylvania system showed a
loss of 80 per cent. This compared
with a decrease of 80 per cent for the
IL months, with considerable indica-
ton in the November results that from
new on a more favorable comparison
with 1929 figures and those for the
early part of 1880 will be possible. In
contrast is the decrease of 80 per cent
reported by New Haven in November
in comparison with figure of IS per
cent net operating income reduction
for IL months. Norfolk & Western, in
which Pennsylvania has a majority
stock interest, lost 90 per cent in OPP
Grating income in November, against
% per cent for IL months. During
the first part of this year this road
was able to show very satisfactory fig
ures, with it's volume Of traffic holding
nf
roads was sharply declining.
Both the Union Pacific and Southern
Pacific did relatively better in Novem-
Der than for the IL months. The for
mer, with decrease of 20 per cent last
month in net operating income, COM
pared with a "a per cent loss for the
year to date, while Southern Pacific,
with % per cent net decline for the
month, compared with loss OF 80 per
cent in the same item fol. ii months.
The most striking contrast in this par
ticular was given in the November
earnings of the Boston & Maine, which
were "a per cent greater than a year
ago, whereas for the IL months there
was loss of about s. Il per cent. The
Baltimore e. Ohio has already included
its December earnings in the figures for
the entire year, which show net oper-
ating decrease of about 10 per cent.
Larger Decrease in Southwest.
In the Southwest there seems to have
been larger net decreases in November
than the average for the year. Kansas
City Southern showed decrease of 81
per cent for the month, as against 20
per cent for the IL months, and Frisco
loss of 26 per cent in November, COM
pared with one of 81 per cent for the
January-No term. Texas Pacific
also displayed the same tendency, los
ing 80 per cent in net operating income
last month, against 81 per cent for the
IL months. The Chicago 81 Eastern
Illinois reported a net operating deficit
last month of $l50.379, whereas in the
same month of 1929 it had net oper-
ating income of about $55,000.
Copyright. 193OD