Railroad Earnings

Record car loadings of early Summer led some to predict much larger net earnings for the railroads. Stock market prices have not, however, advanced to an important extent, and now, as the company statements for July are made public, the reason has become apparent. Although the gross business of the roads as a rule reflects their record volume of traffic, higher expenses here prevented any great growth of net earnings, and in some cases even decreased them. The purchase of new equipment as well as the lasting effects of the shopmen's strike have more than offset the increased gross earnings of the early Summer.