Rail Earnings

Rail earnings of the half year, just now consolidated for the entire country, were $494,866,776 derived from gross revenues of $3,038,560,861. Some part of these earnings will go to the Government under the recapture provision of the Transportation Act of 1920. This provides that one half of all a railroad's excess net operating income go into the General Railroad Contingent Fund to help impoverished rivals. Income becomes excess when it goes over 5¾% of the road's property valuation. What that valuation should be based upon is in dispute. The Government insists on the...

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