Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-26
RAILROAD OUTLOOK
DECLARED BETTER
Present Reports Believed to-
Reflect Low Point in
Years Operations.
BY CHARLES F. SPEARE.


Special Dispatch to The Star.
NEW YORK, April 26.-Railroad
stocks went up in the face of the poor
showing Of gross earnings and net oper-
ating income in January and In Febru-
airy, but they have declined an average
Of about 2 points In discounting the ex-
pected poor returns for March, now
being published.
AS there has been, on a good many
roads, both east and west Of the Mis-
sissippi River, an improvement in car
loadings since the first Of April, the be-
lief Is that for the country as whole
the March quarter will prove to be the
poorest Of the year and that, from now
on. o more favorable comparison will be
made by the carriers with conditions
as they obtained in the trafic world in
the June and September quarters Of
1929.
Outlook is Good.
Unless business becomes more unsat-
isfactory than now indicated the De.
cember quarter Of the year ought to
make good relative showing with that
OF 1929, as the effects Of the industrial
depression had then begun to appear
positively in traf1c returns
Another batch Of railroad earnings
was published today for March, and
with them the results for the three
months ended March 81.
They all reflect the situation that had
earlier been made clear in the weekly
hsures of car loadings. With few ex-
ceptions gross earnings are below those
or 1923, but in some cases better than
IN March, 1928, and in the same month
IN 1877. The net results in a group Of
about Is important carriers in March
Is loss OF over 80 per cent as against
the same period last year, and for the
March quarter decrease of more than
20 per cent. This is in line with state
ments OF industrial corporations for the
same three months covering a term in
which unemployment, the decline ia
commodity prices and other induces of
business conditions have revealed .
greater degree Of stagnation than In
many years.
The Pennsylvania Railroad last month
mad decrease in gross of over IL per
cent from the 1929 earnings and in net
OF "a per cent. For the March quarter
tne gross shrinkage was about 8 per
cent and In net operating income nearly
80 per cent. This reflects the restricted
movements OF iron and steel products,
coal, automobiles, grain and general
merchandise.
Another large system which covers
the Southwest and the Pacific Coast
namely, the Southern Pacific-had in
March gross loss of Is per cent and
decline OF net operating income of
over 40 per cent. Compared with the
March quarter Of last year, its gross
was on II per cent and net approxi-
mating 40 per cent. Here the influences
affecting earnings were the smaller
movements of citrus fruits. products OF
mines, lumber and general merchant.
disc, Union Pacific in the March quar-
ter lost Is per cent gross and A per
cent net.
Northwest Conditions.
Conditions in the Northwest are re-
nected IN Northern Pacific,s net operat.
ing income last month of $758,18S,
a decrease for the quarter in this item
OF nearly 70 per cent. In its territory
the loadings Of grain, lumber and gen.
eral merchandise have fallen on sharp.
y This shows also in the earnings of
the Great Northern, Chicago & North.
western and Chicago, Milwaukee, st.
Paul g. Pacific.
In the New England territory there
mas not Been quite as great q slump in
railroad earnings as elsewhere. al
though the trend in March was more
dennltely downward, with the New
YORK, New Haven & Hartford showing
~ per cent loss in gross, compared
with one OF about 2 per cent for the
quarter: In the Southwest earnings
have also been fairly well maintained
IN contrast with the territories affected
cnleny by industrial conditions. Friscos
March gross decreased about z per cent
and for the three months to March 81
was on less than per cent.
The anthracite coal roads have suf.
iered from the comparative stagnation
In this industry. as well as from the
smaller movement of general merchan.
disc.
1t Is indicative Of the strong finan.
cial position Of the railroads that. al.
though their losses in the last five 9
months have been heavy, and in per-
centage greater than those In any major
group, there has been no serious dis
cussion OF dividend reductions at a
time when scores of industrial CORPORA
tions of greater or lesser Importance
nave been compelled by the exigepcies
OF the business situation to reduce or
pass payments previously made to their
stockholders.
(Copyrisht, 1907