Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-24
BY DIR. EDWARD S. MEAD.

NY DIX, EDh AhD D. MEAD.
PHILADELPHIA, october 24.-An
analysis of railway earnings, in the
light of the proposal Of the Interstate
Commerce Commission to assist rail-
roads whose earning power has been
severely impaired, shows that the
Southern and Western roads VIII re-
ceiye most of the relief. II the plan IS
accepted. The contributions will come,
in large part, from Eastern roads.
Most of the additional revenues, es-
timated by the commission at from
500. 100000 to Sl25, 600. Will be
contributed by coal and ore traffic.
The railroads which will receive re-
lief under the plan of The commission,
are those which will not earn their
fixed charges in 1881. Mere failure TO
earn fixed charges does not, OF course,
indicate insolvency. Many Of these
roads have resources upon which they
can draw to make up deficiency IN
earnings. The possession of such re-
sources will not exclude them from
the benefits of the commissions plan.
Insurance Firms Present Forecast.
OF peculiar interest, at this time, are
the names Of the prospective bene-
ficiaries of the commissions project. IL
is Impossible 10 Say, Until Vic COIiPlS
ton of the calendar year, which roads
will fail to earn their fixed charges.
However a forecast was presented be-
fore the Interstate Commerce Commits
sion on July 10, 1881, by the Emergency
Committee on Railroad Investments OF
life insurance companies and mutual
savings banks. Taking the earnings LOT
the first four months of 1881 as basis,
and applying the average percentage
F1,- Hn YNrnnadinn wears
the committee presented table snow
ing the percentage of their fixed
charges which large number OF roads
might be expected to earn for 1881.
According to this table the following
are the principal roads which are not
expected to earn their fixed charges IN
1881. and will, therefore, be entitled to
the benefits of the Interstate Commerce
Commissions plan, if adopted:
Bessemer g. Lake Erie. Buffalo,
Rochester & Pittsburgh; Chicago g.
Eastern Illinois: Chicago, indianapolis
e. Louisville; Chicago. Milwaukee, ST.
Paul & Pacific; Chicago, st. Paul. MIN
neapolis e. Omaha; Colorado 81 South
ern Elgin, Joliet g. Eastern; Illinois
Central; Indianapolis. ST. Paul & SaulV
ste. Marie; Mobile e. Ohio; Pere Mar
ouette; ST. Louis Southwestern; Wabash;
Western Pacific.
Pool Increased Revenue.
This list has not been substantially
altered by the published returns OF the
second four months Of 1881. These
companies, if the Insurance Commit
tees forecast OF their earnings proves TO
be accurate, will. under the commits
sions plan, retain for themselves the
revenues arising out of the advanced
rates allowed. To-the extent that these
III Nf their
earnings to equal their fixed charges
they will receive, from the proceeds or
the rate advances collected by The rail-
roads which earn their fixed charges,
sufficient funds to meet their revenue
needs.
The second group of roads which will
figure in the commissions plan COM
prise those which earn their fixed
charges. These roads will collect, but
will Eet keep, the proceeds of the rate
advances suggested by the commission.
So much of these proceeds as is neces-
sary for the purpose will be diSbursed
to the members of the first class. Any
surplus remaining will be returned TO
the contributors as their own property.
This relief fund. if the plan is adopted,
will be principally contributed by the
following large companies:
Contributing Railroads.
Atlantic Coast Line; Atchison, To-
peka & Santa Fe; Baltimore & Ohio;
Boston & Maine; Chicago, Burlington
g. Quincy: Central Railroad of New
Jersey; Chesapeake g. Ohio; Chicago
Great Western; Chicago, Rock Island
81 Pacific; Chicago e. Northwestern;
Delaware e. Hudson: Delaware. Lacka-
wanna g. Western; Erie; Great North
ern: Lehigh Valley: Louisville q Nash
vile; Missouri Pacific: New York Gen.
trial; New York. Chicago & st. Louis;
New York, New Haven & Hartford;
Norfolk g. western; Northern Pacific;
Pennsylvania Railroad Pittsburgh d
Lake Erie; Reading Co.; Southern Pa
cific; Texas. Pacific, st. Louis g. San
Francisco Lines; Union Pacific; Vlr-
rinia Railway: Western Maryland.
The commission made third CLASH
fication of railroads. those in receiver
ship whose bonds are in default or
which derive their revenues mainly
from passenger traffic. This group in
cMdes the Seaboard Air Line, the FLOR
ida East Coast and the Minneapolis &
St Louis of companies in reccivership.
The Long Island Railroad is among the
solvent corporations in this class.
The commission feels that its plan, if
put into effect, will yield sufficient
funds to guarantee the solvency Of the
railroads of the United States, except
only those railroads whose bonds are
now in default The plan proposes
that shippers and consumers of certain
products shall contribute to pay the in
terest on railroad bonds which might
otherwise be in danger. The contrib
uting railroads are only the disbursing
agents of a gigantic charity.