Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-28
RAILROAD EARNING
/. SHR|NKAGE SHOWN
Decrease In Net income for
January May Reach 80
Per Cent.

SPECIAL DiSpntcn 70 Inc star.
NEW YORK, February 2s.-Coming
after a year described as one Of the
worst ever experienced by the railroads
of the United States and in which their
gross earnings decreased over 81 ,00O,.
600, 900, or about Is per cent, with q
shrinkage Of more than "a per cent in
net revenues, their earnings statements
for January present discouraging pic
ture.
1t Is estimated that the decrease In
net operating income of the carriers
for the past month was nearly 30 per
cent. For the first 80 roads Il was
slightly under 20 per cent, but the fig-
ures now presented of some of the large
systems show so much higher percent.
age OF loss than earlier ones that the
total net shrinkage is likely to be above
the original predictions. For instance,
the Pennsylvania Lines today report q
net loss IN January Of so per cent, the
Baltimore g. Ohio IS per cent and the
Southern Railway 20 per cent. The
Atchison Is OF nearly IS per cent.
Heavy Decrease Shown.
Except for few roads. including those
In the Northwestern section Of the
United States, the returns have the
same general aspect, namely, q heavy
higher percentage Of net operating de-
crease. The Northern Pacific, Great
Northern and Burlington were success
ful in overcoming their original losses.
All indicate larger operating income
than year ago. The Chicago, Mil
waukee, St. Paul e. Pacific also makes
a relatively good showing in net com
pared with gross. In contrast is the
net loss OF the Union Pacific in Janu-
airy of over IS per cent and by the
Southern Pacific Of more than IS per
cent, while in the Southwest the st.
Louts-San Francisco had an OPERATING
income more than 30 per cent under
last year and a substantial deficit after
fixed charges. On the other hand. the
Missouri Pacific earned nearly as much
for its dividend and interest in january
as in O. similar period In 1880, though
some Of its subsidiaries did not do 50
well.
Even the Bangor 81 Aroostook, which
stood out among American railroads In
1880 Tor increases over 1929. showed q
heavy decline in January following the
trend OF the other New England sys-
TENS, such as the Boston e. Maine and
New York. New Haven e. Hartford,
which suffered from the reduction IA
freight and passenger revenues. The
New Haven and the Bangor d Aroo-
stock both lost about 2e per cent In net
operating income.
Coal Roads.
The anthracite coal roads. with the
exception Of the New York, Ontario A.
Western, all showed decreases in net.
These were small, relative to losses Of
the carriers Of bituminous coal. The
Norfolk q Western. which went through
portion OF 1880 with q higher net
revenue than in the correspondence
months Of 1929. had loss Of nearly
40 per cent in net operating income Ia
January. The Chesapeake & Ohm and
Virginian likewise showed the effects Of
shrinkage in the movement of soft
coal into the industrial centers and to
tldewater.
Since the end of January, car load
lngs nave made more favorable COM
par1son with q year ago. They are still
much below normal. Those lines that
report their gross revenues each week
indicate that the February decreases
Will also be considerable. The South.
ern Railway, for instance, reported to-
day q gross reduction for the third
week OF the month Of over 80 per cent.
Other parts Of the system Indicated
even larger losses.
ating income in the first half of this
year Is decidedly unfavorable. This
fact has direct bearing on the divi.
oend policies to be pursued in the next
few months by the managements al
railroad systems that did not cover
their dividends in 1880 but paid n nor
ton OF them from the surplus accuiiiu-
lated between 1928 and the middle az
1929. 1t is reasonable to expect that a
number of dividend reductions Will be
compelled by the existing situations In
the near future.
Extent Of Decline.