Ammary for railways of Classes II and III-Average annual deficit, 1915-16, also test period 1915-1917. Prepared by Bureau of Railway Economics, Washington, D. C., October, 1919. Railways of Class II--Average annual deficit, fiscal years 1915 and 1916. Railways of Class III—Average annual deficit, fiscal years 1915 and 1916. Lexington Terminal R. R Eastern district-Continued. Mount Gilead Short Line_. Ohio River & Columbus.... Pittsburgh, Westmoreland & Somerset_ St. Joseph Valley... St. Marys & Western. United States & Canada_. Valley R. R. Co. (of Pennsylvania). Washington, Potomac & Chesapeake Southern district: Alabama & Mississippi... Alabama Northern.. Atlantic & Carolina_ Beaver Dam (of Tennessee) Fellsmere R. R__.. Franklin & Pittsylvania Kentucky Midland R. R.. Kentwood, Greensburg Southwestern_ Laurel Ry. Laurel Fork Ry... Lawndale Ry. & Industrial Co-- Liberty White R. R 1,635 Middle Tennessee R. R 4,261 Milledgeville Ry. 15,797 Mount Airy & Eastern Ry. 5,533 Oak Grove & Georgetown..... New Orleans, Natalbany & Natchez_ 978 6,072 Ocala & Southwestern___ 9.098 Ocklawaha Valley R. R 3,700 Oneida & Western... 4,862 Rome & Northern__. Richmond & Rappanhannock River. 6,838 8,166 Sardis & Delta R. R.. 1,218 Savannah, Hinesville & Western_. 8,355 Shearwood Ry. 2,300 Smoky Mountain Standard & Hernando_ 135 3,891 10,740 ANNUAL OPERATING DEFICIT OF CLASSES II AND III ROADS. THE AMERICAN SHORT LINE RAILROAD ASSOCIATION, Hon. JOHN J. ESCH, Chairman Interstate Commerce Committee, House of Representatives, City. DEAR SIR: In compliance with our promise, I am handing you herewith a statement prepared by the Bureau of Railway Economics, showing the average annual operating deficit of classes II and III railroads of the United States, as reflected in the reports to the Interstate Commerce Commission for the years mentioned. In reaching a conclusion as to the probable operating deficit for a given period, you will, of course, take into consideration the increased cost of operation, which we believe will not exceed 50 per cent, to be added to the figures which we submit. We had figured that the total deficit would not exceed $3,000,000, and are much pleased to find it is considerably lower. While the total amount necessary to cover the operating deficit of the roads covered by the statement is almost negligible when compared with that of class I carriers, I think you appreciate how much it would mean to these small and weak lines to have this help in the period of readjustment after Federal control. Regardless of the amount involved, however, we are unable to see any good reason why the stronger roads should have help in this period while the weaker roads would be denied such help. They are all in-traments which need to be preserved in the public interest. When the proposed act takes effect every road will have been returned to corporate management. The Government will be under no greater obligations to one class than to the other. All being out of Federal control and in the hands of their owners the same reason for assisting one would necessarily apply to the other. Asking your continued and favorable consideration, and assuring you of our very great appreciation for the many favors you have shown us, I have the honor to remain, Very truly, yours, BEN B. CAIN, Assistant to President OCTOBER 13, 1919 The attached summary of deficits of railways of classes II and III is based the annual statistical reports of the Interstate Commerce Commission for the fiscal years 1915 and 1916. The summary covers only roads not under Federa control and includes all roads of the two classes named whose combined fee account for the two-year period (July 1, 1914-June 30, 1916) showed a defict Roads having a deficit in one of the two years, which was more than bund by a surplus in the other of the two years, were not included. Inasmuch as railways of class I show a somewhat greater net income in 1917 than the average of the years 1915-16, the average deficit here shown for these tw years has been decreased in the same ratio to arrive at a test period averia as the increase in the net income of the roads of class I. Ammary for railways of Classes II and III-Average annual deficit, 1915-16, also test period 1915-1917. Prepared by Bureau of Railway Economics, Washington, D. C., October, 1919. Railways of Class II-Average annual deficit, fiscal years 1915 and 1916. Railways of Class III-Average annual deficit, fiscal years 1915 and 1916. |