Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-10
NET RAIL LOSSES
At LARGE FIGURE
Carriers Suffer by Policy OF
Pushing Improvement
Programs.
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK, June 10.-The detailed
figures of the total railroad operating
revenues and net railway operating in
come for the four months ending April
80, issued yesterday, bear out the judg-
ment of those who analysed the early
statements and came to the conclusion
that the policy of the carriers in hold
ing their improvement programs TO
normal basis during period of heavy
Shrinkage in receipts had resulted In
net losses about three times as great as
gross losses.
In the four months the reduction In
total operating revenues was $213,000,-
600, or IL per cent. The cut in operat-
ing expenses in the same period was
$89, 100000, or 6 per cent. Taxes were
off $10,000.000. The decline in net rail-
way operating income was $4,000, 900,
or over SO per cent.
April Statistics.
Relatively the same changes occurred
during the month of April, the records
of which are the latest available of the
present trend in railroad revenues. In
that month gross earnings decreased
63,000000, or II per cent; taxes we're
about 100000 less than in 1929, and
the loss in net railway operating in
come amounted to approximately $32,-
100000, or between 80 and 81 per cent.
The operating ratio in April was almost
exactly at the average for the four
| months, namely, 77.77 per cent. It
compared with about 1874 per cent for
the similar month last year, with the
four-month ratio in 1929 just under
"A per cent.
The effect of decreased operating in
come from smaller gross earnings and
relatively high operating cost Is t.
bring down the rate Of return on prop
erty investment of the railroads for the
| four months to a little over 312 per
cent, as against $50 per cent last year
to April 80. The decrease here was
| approximately the same as in net rail-
| way operating income, or around "a
per cent This marks the difference
between a liberal margin, for the sea-
son of the year, over interest and divi-
dend requirements and the failure of
| considerable number Of carriers to earn
/ their full charges or any part of their
dividend during the unusual term
| through which they have been passing.
1t is confidently expected, however, that
| the May and June figures will show
| relatively better net results than those
! for the first four months of the year,
| and that this improvement will be
progressive during the second half Of
1880.
One of the surprising features of the
railroad returns in the first four months
| was the ability Of small group Of
bituminous coal carriers in the Poca-
hontas district to compete successfully
with the returns of prior years. This is
| evidenced in the fact that while the
! rate Of return on property investment
| for all roads in the January-April term
was only 3.56 per cent, that of the Poca-
hontas group was 100 per cent. At the
| other extreme were the Northwestern
roads, showing earnings on property
investment for the four months Of only
! ISL per cent, against the general aver
age of 3.56 per cent.
New England Roads.
Next to the Pocahontas group, the
best exhibit during the four months
period was that of the New England
roads, whose return on property invest
ment was 5.35 per cent, with several
members in this geographical division
showing remarkably good earnings in
contrast with some of their neighbors
The Central Eastern roads earned
slightly more than per cent on prop
erty investment, those in the Great
Lakes territory 3.2l per cent. The Gen.
trail Western list indicated 3.42 per cent,
compared with 1.61 per cent for the
Northwestern lines and 341 per cent
for those in the Southwest. Those in
the Southern district earned 2.94 per
cent.
Obviously the year as whole will
show the return on property investment
we'll below the so-called standard re-
turn. There will be few instances of a
surplus to which the Government can
claim right.
(Copyright. 1907