Evening star., 1932-02-20
Larger Receipts Predicted.

1HS year, unless traLc SHOWS an un-
expected decline, the receipts will be
larger, and not only the maintenance
which is needed from Gay to day, but
that which has been neglected in pre-
vious years will be attempted
The voluntary 10 per cent wage re-
duction which employees have accepted
will bring the biggest share Of the in
creased revenue. 1t will be available to
every railroad. Based on wages paid in
1882 and if there is no decline in traffic
this should amount to S215, 100000.
To that will be added the increase in
rates allowed by the Interstate Com
merce Commission, which should
amount to between S10o,C0O,O0O and
SIPS 100000, again based on current
traffic. This, however, will not be avail
able to all the railroads and many
which do receive it will be compelled
to use it for operating expenses even
though maintenance Of roadbed and
rolling stock may have been neglected
for months.
While all roads will put the higher
rates into force, the increased revenue
to those whose condition is nearest a
prosperous level will be loaned to the
more hard-pressed roads. Those already
in the hands Of receivers may not even
share in the distribution. being too far
gone for the financial pulmotor. Others
near similar crash will need all they
receive to add to their own revenues
and to balance operating expenses. The
remainder-and they should be the
majority-will be able to divert a por-
ton of 1t toward purchases which will
play big part in reviving trade.
Purchases Last Year.
Last year the railroads bought $685.
600. 600 worth of supplies. according to
Nation-wld canvass just completed
by the Railway Age. They were among
Uncle Sans best customers and their
purchases reached, like far-f1ung ten
drills, into giant plants of other in
dreds of villages.
The purchases last year compares
with 81 ,038 900 900 in 1881, which may
be taken as typical of what is normally
needed Previous years were larger
but in them several of the largest roads
were making extensive improvements.
In 1881 purchases were II per cent
of the operating revenue. while in 1880
they we're 20 per cent. which also in
dicates maintenance which was post
poned and now must be attended to-.
Not all of this $3.50, 100000 which did
get into circulation last year Will be
D L
Of it represents equipment, and that
water is already over the wheel. The
roads got along without the equipment
last year and the year is gone Reduc-
| tions in maintenance of way Snd struc-
lures are another story.
Roadbed Repair Needed.
Roadbeds must be brought up tc
shape, especially on branch lines which
have been neglected. even if less loco
motives and cars roll over them. Only
| $3.50, 900 900 worth of material was pur-
chased for them last year, compared
with $685., ,00O, 900 In 1881. and the s163,-
100000 difference shows what SHOULD
have been done but was not. Such re,
pairs now are urgent and the figure:
hope to do this year.
Nearly one-third Of all railroad buy
ing is for fuel, and as only small per-
centage of it is used in shops tht
amount depends directly on traffic
Timber. from ties to lumber, makes II
per cent; a wide list of varied article:
from stationery and food to cemen
makes another one-fourth, and iron
and steel form more than 36 per cent O
| the total The latter was heaviest nj
by last years retrenchment and viii
show the greatest change with the i'm
proved conditions this year.
How much of this total SO easily fig
ured In hundreds Of millions will b.
available depends on traffic. That i
not too promising with the start of th'
year. Though car loadings. which ar
the thermometer, not only for railroads
but for nations business, showed al
encouraging increase for the first weel
Of this month, they totaled only q,
773,000 for January, the lowest sine
1918, when records started, and a de
crease Of 81 per cent from the frs
month Of 1881 and 80 per cent from tn
high year Of 1929.
AS the railroads now have some 700,
900 surplus cars, orders for new rollinl
sock are not expected to be q heav!
feature Of this years purchases.
(Copyfight, 1882, by the North American
| NEWSPAPER Alliance, Incl