INTERSTATE COMMERCE COMMISSION CLAUDE R. PORTER, CHAIRMAN. BALTHASAR H. MEYER. CLYDE B. AITCHISON. JOSEPH B. EASTMAN. ERNEST I. LEWIS. HUGH M. TATE. CHARLES D. MAHAFFIE. GEORGE B. MCGINTY, Secretary. TABLE OF CONTENTS (For details see Index) SPECIAL SUBJECTS Appropriations and expenditures. Consolidation of railroads___. Cooperation of Federal and State commissions.. Coordination of rail and motor transportation_ Deferred charges to operating expenses-- Page Reconstruction Finance Corporation Act___ Recovery of excess net railway-operating income, general railroad con- REPORT OF THE INTERSTATE COMMERCE COMMISSION WASHINGTON, D. C., December 1, 1932. To the Senate and House of Representatives: The Interstate Commerce Commission has the honor to submit herewith its forty-sixth annual report to the Congress. The period covered by this report extends from November 1, 1931, to October 31, 1932, except as otherwise noted. A statement of appropriations and aggregate expenditures for the fiscal year ended June 30, 1932, is embodied in this report. In our last annual report we discussed. the railroad future, which was then causing most serious concern to, the country. It is causing even more concern now than then. The statistics of railroad earnings shown elsewhere furnish the reason. It was thought in the latter part of 1931 that the bottom had been reached in the decline of traffic, but there has been a further severe decline in 1932, with the result that in the 12 months ended with September of this year the railroads in the aggregate fell considerably short of earning their fixed charges, notwithstanding drastic cuts in expense which include a curtailment in maintenance expenditures which can not with safety be continued indefinitely. The forebodings with respect to the future of the railroads which we noted in our last report have, consequently, become more widespread and intense. In the midst of this gloom there are at least three important grounds for encouragement which merit emphasis: (1) This fall there was an upturn in traffic which furnishes better reason for believing that the bottom of the decline has been reached than existed for the similar hope which was entertained last year. (2) The railroads have been in general surprisingly successful in reducing their operating expenses in a ratio reasonably close to the reduction in operating revenues. In 1929, which was a very good railroad year, the operating ratio of Class I railroads (including switching and terminal companies) was 71.7 per cent. In the 12 months ended with September, 1932, it was 78.1 per cent, although the 10 per cent reduction in wages was applicable to only 7 months of that 1 |