Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-29
RAILROAD EARNING
/. RECORD HELD GOOD
December Reports Show Fall
ing OFF, but Years Gains
Are Large.
BY CHARLES F. sPEARE.

Special DiSpatch to The star.
NEW YORK, January 29.--There are
two ways Of looking at the railroad re-
ports of earnings which are now being
published. One is to treat them on the
basis of the current showing, which is
unfavorable, and the other to take
l2-month picture of results. This Is
highly satisfactory, and In many in
dividual systems represents the greatest
amount earned per share of stock since
1926.
Those who have followed the week.
to-week figures Of railroad car loadinRs,
and were acquainted with the serious
operating diniculties due to the weather
IN various parts OF the country, are not
surprised at the December losses shown
both IN gross revenues and In net in
comes. These were quite general. There
are only few exceptions among the
large systems In the East and West
that have so far made their statements
public. They reflect the falling off in
merchandise traffic in the industrial
sections OF the United States, the smaller
movement OF coal and ore and restrict
ca loading Of agricultural products,
lumber and iron and steel.
LosSes IN december.
Losses in gross In December were not
as serious as had been Anticipated. b,It
tne net returns made deep inroads into
tne pronts that had been piled up In the
nrSs nine months Of the year. Last
months net income Of the roads 40 FAR
reporting show decrease Of between
10 and 10 per cent, compared with the
same period Of 1928. There are Alec
losses in some instances from the De-
cember, 1927. level. It IL expected that
January will show unfavorable earnings,
as carloadings this month are well be-
low those Of last January and again the
element OF severe weather has been an
expensive item in railroad operations
Looking at the earnings for the longer
period, and 1t is on the 12-month
results that financial policies are es-
tabliShed, and not those of any partic-
ular quarterly period, the situation gives
assurance to holders of railroad securi-
ties. The large majority of the carriers
came through 1929 with profits well
above their requirements on fixed in
terest obligations and on stocks, and
have added to their surplus account,
Such systems as the Missouri Pacific,
Wabash, Western Maryland, Wheeling
& Lake Erie and Missouri-KansAs-
Texas gained sufficiently In net over
1928 to justify demands that are being
made on them by shareholders for a
larger portion of current profits. It is
not unlikely that, during the present
calendar year, Missouri Pacific, Wabash
and NEUTRALITY-SUSPICIOUS. common win
go on a dividend basis.
Conspicuously strong statements for
the IL months are those of the Penn
sylvania Railroa@, which had $4,000, 900
more net last year than In the previous
year; New Haven, with so per cent
| gain in surplus; Southern Pacific, with
an increase of nearly $4,000, 900 in net
| operating income; Chesapeake q Ohio,
whose surplus after charges was $780,
900 larger than in 1928; Great North
ern with net gain Of 81, l63 900 after
small gross decrease, and st. Louis
San Francisco, whose surplus, after all
charges in the IL months, was roughly
20 per cent above that of 1928.
Gains Recorded.
The Minneapolis & st. Louis, one Of
the two remaining important systems
in receiverShip, made quite sensation
al recovery during the year and ended
1t with q net operating income nearly
$50 per cent above that in 1923. This
reflected higher efficiency in operations,
as there has been but little change In
its gross earnings in the last three years.
The Chicago, Milwaukee, st. Paul &
aSA4ASs WAAOoS AACt OkCA abAAAB A4NOAAAC "a
| 1928 was more than double that In 1927,
when the road was coming out of re-
ownership, had net loss of about 10
| per cent.
The Baltimore & Ohio was one Of
the trunk line roads to suffer from the
sudden decline in business In the last
quarter of 1929, but it was able TO end
, the year with an operating income
approximately the same as that In 1928,
fYn "a ~ NJ hnk a
months total operating revenues were
of $8,600,0 900. The reports of other
large systems, including New York
Central, Atchison, Union Pacific and
he Southern group of roads, win Short
ly be available and will show about the
same general conditions as those that
have already been reviewed.