Railroads in 1924

Undoubtedly, one of the distinctive business developments of the past year has been the revival of interest and even enthusiasm in the railroad industry, after years of depression and doubt. Railroad securities have risen swiftly in price and have been eagerly purchased by the investing public, while new railroad financing has been accomplished with unexpected ease.

For volume of traffic, 1924 should rank only after the extraordinary rail way year of 1923. Carloadings this year are expected to reach 49,000,000 cars--about 1,000,000 less than 1923, but 4,000,000 over the heavy year of 1920. Loadings of merchandise, miscellaneous and less-than-carload freight l have tended to increase during the past year, while a decline has been witnessed in coal, ore, coke.

The year 1924 saw more new railway mileage under construction than any year since the War; the Interstate Commerce Commission authorized construction of 1,318 miles of new lines, while it permitted only 453 miles of old lines to be abandoned. Shippers are practically all of the opinion that 1924 rail service was the most speedy and efficient ever afforded. Capital expenditures of railroads for rehabilitation of cars and locomotives was $563,000,000 this year, against $377,000,000 in 1923.

Net operating income of U. S. railroads for 1924 is estimated at $975,000,000, against $977,000,000 last year. The principle obstacle to better earnings is the continual increase of taxes on railroads; in 1912, these taxes were 127,000,000; now they are estimated at $350,000,000 for the current year. Estimated dividends to railway shareholders in 1924 are set at $303,000,000.