Evening Star Newspaper, April 6, 1921, Page 3

| CONFRONTS RAILROADS OF-1 SERIOUS FINANCIAL SITUATION U.:S. = 11 Dccupy Different Situation From That of i 1920, When Government Guarantee Ran for Eight Months. BY 6. GOULD LINCOLN. (Copyright, 1921, by The Washington Star.) (This is the fifth of a series of articles * en the acute railroad and railroad labor problems. The next will appear in an early issue.) Rallroad finances—like those of any ,other industry—constitute the indi- | ‘cator of success or failure. And the \Sinancial situation of many of the 1roads today is little short of desper- @te. The property value is there. The railroads are vital. The people must fave them. But the roads are not making money enough under existing conditions to pay all their expenses, leaving out of consideration paying dividends. The figures obtained for receipts and expenditures in January of this year indicate this clearly. Preliminary figures for the 203 class 1 railroads of the country—class 1 roads v those whose gros8 incomes are 1,000,000 a year or more—for the month of January show an alarming situation. They show a deficit of $1,167,800, when the operating eypenses and taxes, rent- als, etc., have been subtracted from op- ) erating revenues of the roads. Nothing 18 left_for dividends or interest charges. In January, 1920, these same roads, which include practically. all of the roads in _the country, had a net r“"al granted the ,017,000. That revenue was ren“.e.ufaf‘sgo':xrse. with the old lower rates for freight and passenger serv- jce, but also before the more recent increases in wages had been allowed. The roads, to make a return of 6 per cent, as contemplated in the trans- portation act, should have made a net income of about $68,000,000 in January, 1921 Now in Different Situation. The roads occupy a different situa- tion this year from that they have oc- cupied since they were taken over by the government in January, 1918. Dur- ing the two years and two months that they were under government control and operation it was the task of the government to see that all their bills were paid, and that a Te- turn on the investment found its way into the pocke;s of the security hold- rs of the roads. el‘ll! - year the roads were turned back to the private owner&n'tvl(:;‘a: guarantee by the governme during the first six months of private operation the government would see to it that expenses were paid and also a fair return on {he investment. That guarantee carried the roads up to September 1, 1920. Then they “went on their own." There was no government standing back of them to pay their bills or interest charges. It must be remembered that while the transportation act, under which the roads were returned to the own- ers, provides that rates shall be fixed by the Interstate Commerce Commis- sion on a basis that will give them a fair return on their money, that act does not guarantee that the roads shall make money or pay their bills in the future. The guarantes stop- ped with September 1. Exeeutives’ Efforts. The roads, therefore, in 1921 are faced with the prospect of making ioney or ing under. It is incon- Celvable that they can be continued first eight monthsof 1920—$200,000.- 000 for the first two months when the government was operating them. and $600,000,000 for the following six months after the roads had been handed back to their owners. For a time the roads were unable to obtain any of this money, because it yas ruled that the settlements must’ be final, and the final settlements arc & long way off in_the future. But the passage of the Winslow bill made it possible for the roads to recelve such part as was held due them by the In- terstate Commerce -Commission. They are getting this money today as fast as they can. They are using the money to pay back obligations, to pay interest on their securities, and to pay their operating bills. : The roads this year are faced with the problem of financing outstanding funded debts which are maturing, and also with financing equipment obli- gations and other temporary forms of indebtedness. There falls due, in 1921, a total of $322.472,773 in mortgage bonds, collateral tryst bonds and mis- cellaneous obligations, not including, however, temporary obligations. This is a very considerable amount of money that must be raised in some way to meet these obligations—or at least new securities must be issued to cover the old. For a time last fall things looked much better for the railroads. The Interstate Commerce Commission had increases in rates re- ROSEDALE GARDEN - PROJECT EXPANDS drganization Appears to Be Entering Upon Its Most Productive Season. Spring garden work has begun among the members of the Rosedale Garden Club, founded by residents of Rosedale, in the northeast section of the city, to promote home gatden- ing. The large number of requests for garden plgts this season indicates to members of the club that the organi- zation is entering its most produc- tive season. Efforts are being made to obtain more land. Charles Tobeln, president; Smith, secretary, and Miss Gertru Markey of Noel House, treasurer. Profits in 1030. During the year 1920 the results of the gardens..as shown by a com- pilation of Individual reports, made an average profit in vegetables of §50 for each garden, a total of $1,000 from the tract. -Thirty people were kept busy and supplied 200 persons with fresh vegetables, besides - canning 1,000 quart cans for winter use. Two thousand hours of time that otherwise would have been wasted were saved in producing the vege- table crops and resulted in a special saving in living expense to the gar- deners. The use of a large section of ground was secured in 1917, and the space cleared of all tgash, plowed de quested and everything had been fig- {and fenced with good wire fencing ured earn a fair return on the investment. There was a reaction from the period of uncertainty which had preceded. The Pennsylvania road put out a new bond: issue of $60,000.000, and they Wwere ehtirely subscribed ogernight. But. today, if the Pennsylvahia were to put out a similar issue of bonds— or any other road—there is consider- able doubt if they could be sold, ac- cording to mert who have closely ex- amined the situation. Enormous Decrease. The transportation business has de- creased enormously., The country is not producing or shipping the quan- tities of goods it was last fall. The production and shipment of coal in February dropped way down, for in- stance. The people are waiting for lower prices befere they will buy the various commodities. ‘ The total operating expenses of the roads during 1920 have been figured at $5.826,197.474. 1In 1919, the last full year of government operation, the operating expenses were $4.398.- vate operation—$1,427,789,060 more than they did during 1919, while they ‘were under government operation the year through. insist that the private management of the roads has been wasteful and inefficient, point to the great differ- ence in these operating costs Justification of their positions. granted the men by the Raflroad La- bor Board last July, made retroac- cost was only about $420,000,000. Why, they ask, did the operation cost the { When the roads were handed back to roads a billion dollars more than the | their owners there was mue increase in wages, as compared to|in the way of repairs, it is 8aid, and in private ownership and operation if | the cost of operation in 19197 * tkey do not pay expenses and also pay interest on their securities. The railroad executives, therefore, are Raflreads’ Explanation. ‘The railroad executives have their straining every nerve to cut down eX- | answer ready to this. It runs some- ‘When, in August, 1920, the Inter- what as follows: = In the first place, the total wage state Commerce Commission estab-|pill in 1319 was approximately $2,- lished the new scale of rates to be by the railroads—an increase 900,000,000 and in 1920, $3.730,000,000, or $830,600,000 more fn 1920 than in charged over- the “old -rates of about 35 per| 1919, instead of being between $400,- cent—it also tentatively fixed the| 9p,000 and $500.000,000, as estimated valuation of the roads. at $18,500.- 000,000. This is somewhat below th: book value of the roads, but, never- theless, ‘approximates that value. As has laready been said, the property value is there. Ubon the operation of the properties depends their success or failure financially. The outstanding capitalization of the railroads in round numbers is $20,000.000,000, of which about $11,- 000,000 is bonded indebtedness and $9,000,000,000 in capital .stock. bonds, on_the average, pay 4% per cent, or $475,000.000. the capital stock has $350,000,000, or an average of about 3 per cent. This by no means tells the ngle story so far as the capital stock is concerned. Some roads have paid practically nothing on their stock; others have paid 4, 5, 6 or even as high as 10 per cent. Official figures place the net oper- ating _income of the roads for the year 1920 at about $62.000,000. Now, without the government guarantee, covering the first two months under government operation, and the next six months under the operation of the transportation act, it is easy to see / what would have happened to the yoads. And the railroad m: d are afraid that is just what is going to happen to the roads in 1921, un- Jess expenditures can” be cut tremen- dously and business increased, with- out delay. > Claims Against Govermment. The roads are claiming from the government about $800,000.000 under the government guarantee for the SPECIAL NOTICES. In past years paid around { 3nd the in accordance with the wage increase © | granted 'by the labor board. This discrepéncy, it is said, is due to the fact that some of the increases in pay granted by the railroad administra- tion in 1919. were not really reflect- ed in cost until 1920. Then, too, the number of employes in 1920 averaged 1,993,000, as compared to 1,913,000 in 1919, or 80,000 more. Added fo this was the fact that the national agree- The | Ments—of which the roads complain bitterly as’adding to their lahor costs—signed the latter part of 1919 first of 1920, were in full ef- fect during 1920 and not during 1919. Fuel and Materials. So the roads contend, after labor has been taken care of, the difference in the cost of operating the roads in 1920 and 1919 amounted to about |$597.000,000. They explain this in- creaspd cost on the ground that fuel and materjals reached their peak in 1920. The average cost of coal, to the rofids, for instance, was $3.32 a ton in 1919, and $4.20 a ton in 1920, or 88 cents a ton higher in the latter year. The roads purchase about 150,- 000,000 tons of coal a year. The dif- ference in price, therefore, would account for $132,000,000 more. fuel ofl used by the roads, 1,626,960.000 gallons a year, cost 1% a cent more per gallon in 1920 than in 1919, and this accounts for ap- proximately $8,000.000 of the increase. The cost of steel rails, of ties, lum- ber and all kinds of supplies was higher in 1920 than in 1919, the roads say. Then the switchmen and yard- SPECIAL NOTICE3. The some WANTED—A VANLOAD OF FURNITURB TO ttsburgh, April 13 to_25. THE BIG 4 o O INC., 1125 14th st mw. -~ e ts of roof paint. coa m-m;-mm?m-wm.n T apply mme snd gusrastee roof for five years. uct also sold in bulk. MADISON CLAR! ibutor. Sole Distributor. 1314 Pa. ave se. (myl®) - Linc. 4219. MICHAEL J. COLBEBT ANNOUNCES al of his' office. 1o, the Bquity ding. 317319 John Marshal place, - goclated witp the Srm of OLD FLOORS PLANED, BCRAPED Poliated: sample thoset dome freor po e’ Ly bed. C. ADAMS, 607 G st. n.w. Fr. 2518, 56 i - TRANSPORT i 327 5. 4oen sty Newareow. OVING, 60 CEN N. N. 3 & 3. T TEmn rly come office Alex- April 7, 1921, at 12 o'clock Boon. WEN, Secretary. CLAFLIN OPTICAL CO, tons Fi'led. EET. —and other about-the- house repair needs. Cush-saving prices. Geo. M. Barker Co., Inc. 49651 N. Y. ave.; 1517 7th st. Tel. M. 1348 HOUSEKEEPERS, ATTENTION—Rugs ot your residence; look like pew: the . 8 ¥ aw. It’s to Your Interest —to K hom¢ mn Black painted "It mesze prescrration Screen hances of ready sale. Paint, o:rn Painte ‘which exoot 1 w! 50c Pt. Y e | e e s Becker Paint and Glass Co., 1239 Wisconsin sve. Phooe West 67. §fIARRIS HAT FRAME SHOP 1010 F ST. N.W. from N. Y., 8e. Hats made to all’ colors, 2 GOOD JOB —ot inting requires good weather, e roof painter. roof paint and a good Sou't) et all of this by Raving us appiy Tronciad Roof Paint. Roofing 1416 F st. a.w. IRONCLAD &5, ‘e ic .Small Jobs of Printing —receive the same careful atten- 2 big book or catalogpe. The National Capital Press T semadens. . P CLAPLIN FOR EYEGLASSRS. NO8 FOR RENT—UPRIGHT AND rices piance for rent at reasonable P reat lied on purchase price by agree: Hodo &flkcfl.'l'llo fl- Vklnbl:l.llfl m‘., '$15 Down, $15 a Month. Own your own metal freproot o m'."mgou. 12 et w; Oaly 12 moni payments. Iron-Cl jarage Co., 706 10th St e ROOF LEAK? Get us on the Job If you want the trouble effective- 1y remedied. R K. FERGUSON, Inc. 1114 9 8t “1': North 231- Roong Experts. Your Second Printing Order Will bring e moch entisfaction as your first. High grade, but not high priced. THE SERVICE SHOP BYRON S. ADAMS, J3irees. Roof & Pk Repairing 1gh] —We guarantee ti Main 314. " The Shade Shop ‘W. STOKES SAMMONS 830 13th St. o Window Shades Are Down to Bedrock Prices at This Factory. Electric Wiring & Fixtures out ®o that the roads should {and on Friday, April 20, 1917, the first fifteen gardens, each twenty-five by eighty feet, were assigned. ~Dur- ing the spring and’ summer H. -C. In other words. the roads |th £ cost to operate in 1920—during which | c¢¢ded by Willlam C. Hall as tae ag-i- they were for ten months under pri. | culture agent, and the work contizu The proponents of government oper- {and best looking front and back ation of railroads, and the men who |Yards within a prescribed boandary. 28 | which probably 100,000 men were en- They | gaged over various periods of time, is say that under the increases in wages { estimated to have cost the rofds prob- tive to May 1, the increase in wage |the roads was done during the gov- i We do not claim to be the cheapest, but we do_guarantee satisfaction. Mndn @97, 80811 I3th ot. n.w. Connelly, agricultural agent for the District, gave a great deal of time by advice and council .to encourage the prcject, and at the end of the season the value of crops xrown averaged around $25 per garden, a ;Vfiry fair saving to tne various fam- es. A Organization Perfectsd. The following fall and wianter the agricultural agent gave a number of talks and illustrated iecturcs to in- crease the interest and exténd: the work, and at 2 general mecting held in November severn] $¥) prizes were awarded for the best gardens pro- duced in the locality. A garden or- ganization was perfected by the se- lection of officers, and the Rosedale Garden’ Club came into existence. The next year more gardens were added to the Rosedale group and 2 number of ‘back-yard gardens were lestablished by the coloted peaple of & séction, ~Mr. Connelly was suc- in the same general line the prev ous year. A new feature'was sdded | —beautifying the front lawns of the homes, with prizes for the cleanest men outlaw strike in-April, 1920, in ably $200,000,000. Ifi addition to this, a great deal of maintenance work on ernment guarantee period in 1920. needed the roads proceeded to put in these repairs, naturally increasing their ex- penses. Finally, the amount of busi- ness handled in 1920 was in excess of that of 1919. : —ee e «Washingtan — the - Most Livadle City in America” SMANSH I P very well ~omes to " a prop- honesty is We're in a P un to tell you every detail _about property we offer for sale and let it sell itself on its merits. ‘We will feature your prop- erty so that its merits and value will be brought to the attention of the people most likely to be inter- |fi! ested. —overlooking beautiful Soldiers’ Home grou Inspect 4114 3rd St. N.W. 4 large bedrooms, large living and dining rooms. breakfast and sleeping porches. Very deep lots. Always open until 9 pm. i D. J. Dunigan Y. Ave. Main 1267 1ight here 1z liegal Dangerous Inefjcient A %" Wacbeth B Eifeiant. Macbeth Lens Bright Light _ Without Glare - Comply with latest police regulations, which prohibit “The use of blinding or dazzling headlights* or sidelights.” Every ray is properly de- flected—300 feet ahead,” with the vital side lighting. We carry all sizes to fit standard lamps. Single lens furnished—ask your dealer. A. Eberly’s Sons, Inc. 718 7th St. N.W. e e Have You Don= Your Share? r Z Are you one of the 4,372 persons who have responded to the appeal of the Associated Charities and the Citi- zens' Relief Association for more members and more meney? A Eight thousand dollars is still needed to enable these family welfare agencies to continue their work. - They need your help. i Will you give it by sending a contribution to Howard S. Reeside, 923 H street northwest? Abe Martin Says: Agitators Will Fail. ance of May day United States, Davis predicted yesterday, to_stir up strikes. few strikes and lockouts in deal.” —_— FORESEES QUIET MAY DAY. Secretary of Labor Thinks Strike Peace and quiet will mark observ- throughout the Secretary of Labor notwith- standing efforts of radial agitators The Labor Secretary pointed to the the United States as evidence of his con- ‘tention that workers are becoming satisfled they are getting a “square Every officlal act of the president of the French republic has to be countersigned by a minister. SALES MANAGER WANTED Executive ability of high order neces- sary. Furnish full details covering qualifications in re- questing interview. Address Box 268-K; Star office. ¥ Ther’ ought t’ be a heavy pen- alty fer writin’, “Enclosed find clippin’,” an’ then not puttin’ th’ clippin’ in. It’s certainly a dull ole town that hain’t got a five-cornered pust, office fight ragin’ these days. - i Copyright National Newspaper Service. PRICES LIKELY TO RISE. |ARBITRATION SUGGESTED IN NGRWAY SHIP CLAIMS ‘| Controller Crissinger Sees No Evi- dence of Further Drop. Prices are at lowest now, and an upward turn may be expected at any time, accopding to Controller of the Currency Ceigsinger. All that is need- ed s a sHght B¥ying movement. Peo- ple who are waiting for prices to agalnst the United States for ships req- fall:lower are likely to lose, he point- | wisitioned during the war be adjusted ed out, by waiting too long, for when | by arbitration before the permanent the buying returns, it. will carry | court at The Mague has been made by prices higher. | Secretary Hughes April 17Tn in a note When the buying starts, he point- | {0 Minister Brvn of Norway here, At Sers "Trom thoge. whe wamt o tae | L0 s wer here for the purposeof | reaching a settlement of the claims. | advantage of the low prices. just as ' ' (“ns a enson > Shipp there was a rush of selling ‘hairman Benson of the Shipping Secretary Hughes in Note Offers | This Plan of Settling for Ships Taken Over During War. Suggestion that Norway's claim - < N ="| Sure ELL: Iflflémosfl orders | Board explained last night that an al- ———— — a_year ago, when speculators and |lowance of $14,157.000 was made by wholenalers suddenly realized that | boned for o mumimes o comracrs o Just Started! . ! the peak of prices had been reached ships under _ construction in this NON- N and all trled to sell at the top. This | country for Norwegians, which - were PR selling wave sent prices tumbling | taken over by this government during | Clrculalmg Library down. Just as the upward price trend | the and completed. Norway, how- went too far in most cammodities, the | controller thinks, the price pendilum has now swung too far in the oppo- site direction. ORDERED TO DUTY HERE. Join Now | Already a Big Succean—Our Latest Fiction Circulating Libwary Read all the latest $00 | fiction for. 25¢ el it was said, expressed dissatis- tion with the amount. contending | that allowance should be made for the speculative value of the contracts, due to the increased price of tonnage dur- Ing the war. The board refused to ac- cept the argument and referred the Capt. Frank E. McCullough, Nava] |9uestion to the State Department for (| | Medical Corps, at the Naval Hos- |2djustment. PEARLMAN BYOK | pital, New York, has been ordered to | SHOP | this city for -duty In the bureau of | The halibut is the largest of the Open Evenings | medicine and surgery. flatflsh family. D.J.KAUFMAN’S)| MAN’S STORES We Give the Values and Get the Business HERE WE GO AGAIN! With a Timely Sale of 616 17th St., South of Pa. Ave. W, Z 7 7 22 W, AR i TS E Apartment House Management —today is a Big Business in itself and requires comstant, ex- perienced attention. I Our Property Managem‘ent Department —cdnsiders it thus and handles it accordingly. As production starts, methods of retaining the tenant will become more complex and more need for proper management will ‘be felt. The time to get ready for constant and turn in this class of Real Estate is Right Now. § ; Consult this Department for Facts g §‘HF E H profitable re- H SHANNON & LUCHS Property Management. Department 713 14th St.'N.W. Rent-Rent-Rent That is the cry regularly every month, and at the end of the year you have only rent receipts to show. Why not be a landlord yourself and ‘take in rent? Or own your own little home and live there free from monthly rent bills? We have the property for you. ~ For Instance Let us show you a new Colonial tapes- try brick dweliing in the best section of Petworth. 6 fine rooms and bath, hot water heat, electric light, hard- floors. Possession at once.” Price ,750. | Terms $1,000 cash, balance $75.00 per month, including all interest. MOORE & HILL, Inc. 142022 H St. N.W. We also have an exeellent dwelling near Dupont Circle, just off Mass. Ave. 10 large rooms and 2 baths, hot water heat, extra deep lot to alley. Price only $14.000. This property is in perfect con- dition. Only $2,000 cash required, bal- ance like rent. CHARLES C. GLOVER ROBERT V. FLEMING Cashier President MILTON E. AILES AVON M. Vice President ln‘{‘m‘; 2 Assistant WILLIAM J. Cashier FLATHER Vice President GEORGE 0. VASS Asstatant Cashier JOSHUA EVANS, Jr. " Vice President HERE is an advantage in a connection with The T Riggs National Bank—an institution that will be able to care for your banking requirements as your business expands. Such connection not only affords you a convenient and dignified method of handling your financial mat- ters, but is a real asset to your business. Our organization will be found complete, courteous, accommodating. We limit our “desire to serve” only by accepted practices of sound banking. - The accounts of indsviduals, firms and corporations are cordially invited Glhe FRiges Natinn&l%fikz *+ OF WASHINGTON DC o On Penngylvania Avenue Fcing the U.S. Treasurd Capital and Surplua, $3,000,000 Resources, Close of Business, Feb, 21, 1931—§35,631,830.35 U T o 7% 72 2,000 Splendid Fancy Percale and Madras SHIRTS 1.49 | A fine lot of new, snappy,;nifty, neat and novel soft cuff shirts of a very kigh count percale, fast color, and printed madras. Full cut and well tailored. Size 134 to 17Y5. At Both Stores Is the popular price for new spring SUITS We knew it—Months ago we mailed-a questiornaire to thousands of our customers. On the hundreds of answers we based our Spring Purchases. $27.50 to $55 is the range of prices, we bought according to our customers’ wishes. $33.75 is the big favorite. We have ’em in conservative and young fellers styles in a multitude of new, zippy and neat patterns. QUALITY AND TAILORING—D. J. KAUFMAN STANDARD 7 7 / JUST RIGHT! Fine Silk SPRING TIES 69c Three for 2 Dollars |. Unlimited Ranée of Beautiful Patterns Same Tie Brought $1 Last Fall Try to Match ’Em at 85¢ LOOK AT THIS! 1,000 PAIRS Famous Chester SUSPENDERS 39c ..Three for a Dollar Fine lisle elastic web, Leather Emls'ima Button Cq.rt-ofl Try to Match ’Em-at' 50c \