Evening star., 1936-05-26
RAILROAD INCOME
OUTLOOK BRIGHT
|. B. A. Interim Report Re.
fleets Credit Gains by
Leading Lines.
BY the Associated Press.

CHICAGO. May 26.-Prospects for
railroad earnings are distinctly bright
er, an interim report issued by the
Railroad Securities Committee Of the
Investment Bankers Association Of
America said today.
This situation has been reflected
in substantial improvement in the
credit of many Of the Nations i'm
portant rail systems. the report point
ed out.
Traffic volume gains which started
in August, 1885, have been maintained
and present carloadings indicate some
hesitation since January ! may be
merely a normal pause in the general
upward trend. Records since the first
Of the year were distorted due to bad
weather, but have recently indicated
further improvement, the report said.
The committee said it found little
improvement in the industry's rela-
tionship with various governmental
agencies exercising power over the
railroads and competitive forms Of
transportation.
'Tt is true that the bill to regulate
trucks and busses has been passed, and
the Interstate Commerce Commission
Is now actively engaged in measures
to carry out the act" the report said.
''On the other hand. the bill to reg
ulate water carriers, and the Petten-
gill bill, which would permit rail-
roads to compete in regard to rates
with unregulated transportation agen-
cies. have not yet been passed.
In addition, the decision of the
commission in connection with pas
senser rates of the Eastern roads has
serious unfavorable implication.
1T is quite obvious that merchan-
dising passenger traffic varies consid-
erably in different sections of the
country. The commission seems to
have invaded not only the field OF
management but has attempted to
solve an extremely complicated mer-
chandising problem by uniform order
covering varying types of passenger
tramc IN tne country.
Pennsylvania Railroad.
NEW YORK. May IS P.-Pennsyl-
vania Railroad Co. yesterday reported
net railway operating income for April
at s7,776,54S, compared with s5,75s,-
254 in April, 1885.
Donnelly Makes Report.
NEW YORK, May 26 (P).-Charles
Donnelly. president Of Northern Pa
cific Railway Co., said today, Traffic
and revenues are continuing to run
moderately ahead of year ago"
General business conditions in
Northern Pacific's territory continue
favorable" he said. On the basis OF
tourist inquiries q large volume Of
passenger business is to be expected
during the coming season, he indi-
Gated.
He added there was a moderate
deficiency in sub-soil moisture In the
Spring wheat territory along the
Northern Pacific lines, but that rains
within the next two weeks could cor
rect this situation.
Norfolk q Western Gains.
ROANOKE, Va. May 26 CP).-Net
income of 1854, 4,0s4 for the. first fou1
months Of this year, a gain of $3,437,-
633 over the corresponding period last
year, was reported today by the Nor
folk & Western Railway Co. In its
financial statement, issued at the gen
eral offices here.
For the month Of April the railway
reported net income Of $2,149,506,
gain of $546, ,694 over April Of 1885, but
a decrease of $533,696 from the pre-
ceding month. This decrease was
noted especially in freight revenues
which dropped from $6,85l 1853 In
March to $6,43S,573 In April. Pas
senger revenues increased to 1915, ,80l.
as compared with $293, ,543 in March.
For the four-month period operating
revenues were s27,s2o,ss7, as COM
pared with $4,000 ,s3s In the same
period last year. For the same period
1886 operating expenses were $15,-
509,537, as compared with SIS, ,260, ,l34
in 1885.
20 Reporting koads.
NEW YORK. May 26 R.-April in
come of the first 20 reporting railroads
continued to rise despite the unusual
expenditures necessitated by the
March floods.
Gross income for the month was
1853 per cent over the 1885 total. Net
operating income rose 22.2 per cent.
The gain in tho latter category would
have been considerably larger had
maintenance expenditures been more
nearly normal.
Operations Of the group for the FIRST
four months of the year return q 13.2
per cent increase. In gross and 16.6
Der cent rise In net operating income.
as compared with the like 1895 period