Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-28
RAIL STOCKS firm
DESPITE EARNINGS
Group Maintains Recent ADJ
vances in Face of Drops
in Net.
BY CHARLES r. sPEARE.

special Dispatch 70 The star.
NEW YORK, January 2s.-The
change in sentiment toward railroad
securities is illustrated In the steadineSs
of this group In the face Of December
reports Of gross and net earnings, which
show no improvement over those in
months previous.
The average Of railroad stocks II
about II points higher than when the
November statements were being pub
lished. representing gain Of nearly
twice as much Is has taken place in
public utilities in the same period and
comparing with an average advance in
industrials Of about IL points since the
middle of December.
Obviously there was some discount
ing Of the December statements in the
low prices made for railroad shares
late last year. Since then the proposed
consolidation Of the Eastern trunk
lines has had q stimulating effect not
only on the stock of the carriers con-
cerned in 1t, but those Of systems In
other parts of the country. The rec
commended repeal Of the "recapture
clause" by the Interstate Commerce
Commission has also been q construct
i've factor. Institutions and corpora
tons that were selling railroad stocks in
December at prices lower than they
had been in several decades have re-
Gently been repurchasing them.
Decline in Net Indicated.
From the December reports that have
already been published 1t Is indicated
that the railroad net for the month viii
be 80 per cent below that Of 9 year
ago. The decreases are general over
the United States. They reflect the low
volume of heavy tonnage on the hard
and soft coal roads, Of limited iron and
steel trafic out Of the steel centers, of
the smallest movement In many years
from the districts where automobiles
are manufactured, Of heavily reduced
car Ioadings. Of miscellaneous freight
carrying high rates, as well as re-
stricted movement of agricultural prod
uctS. In addition, passenger trafic last
month was so low that numerous roads
were forced to curtail train services in
the interests Of economy.
Together with earnings for Decem-
her there are now available the reports
1890. Two roads, the Bangor b Aroos-
took and the Chicago Great Western,
were able to show larger net operating
incomes last year than In 1929. The
former also earned . higher percentage
on its common stock. The Chicago
Great Western was the one railroad OF
Importance to initiate dividends on its
preferred stock in 1890. This 1t was
able to do on the basis Of . larger
operating income than in 1929.
The best exhibits IN any single group
are those Of the soft coal roads operat-
ing out Of the West Virginia fields.
The Chesapeake & Ohio earned last
year $4.43 Q share compared with $4.14
in 1929 and had o net operating loss
of only 8 per cent. The Norfolk 81
Western reported today earnings Of
nearly $22 q share on its common stock
against q trifle over $29 the year before.
In other words, earnings were nearly
SO q share over the regular $40 divi-
dend and the 50 extra now being de-
clared on the common.
Other Railroad Reports.
Preliminary figures Of the Baltimore
81 Ohio for 1880 were issued last month
when the regular quarterly dividend Of
ia per cent was declared on the COM
mon stock. The final report made yes
1880 on about $0,O00,O00, or Is per
cent, following decrease In gross earn
ings Of approximately $39, 100000. The
Reading, which Is to 60 to the Baltt-
more & Ohio in the four-party plan,
showed decrease In net of ~ per cent,
and the Central Railroad Of New Jer-,
sey net loss Of az per cent. The
Erie earlier reported q net decrease Of
80 per cent.
In the New England territory the
New York, New Haven q Hartford In
dicates earnings on the common stock
last year Of $7.33 . share. compared
with $11.72 in 1879, and the Boston u
Maine $4.02 In 1880, against $6.91 in
1929. In the Northwest, the Great
Northern shows decrease In net
operating income Of 80 per cent, but
with the extra dividend from the Bur-
lington the road covered It's s. q share
dividend on It's capital stock, with
about SO q share additional. The Chi
cago, Milwaukee, st. Paul q Pacific
lost about 80 per cent In the net last
year. when It's gross revenues were the
smallest In over decade. The South
ern Pacific had Q net loss for the IL
months of az per cent
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