eer RAIL ROAD COMPANY. 2 See : 25°
GENERAL REMARKS.

Steamship yene the fiscal year that ended on June 30, 1919, shipping interests _
Line. generally were in a condition of exceptional prosperity i in which our Steam-
ship Line participated. Vessels loaded to capacity, labor fully employed,
remunerative rates in effect, with the result that despite higher wages
and the heavy costs of material and supplies our operating income was
satisiactory, but early there were indications of an approaching reaction
presaging the inevitable commencement of deflation that rapidly devel-—
oped (and continued during the entire year), and as quickly unfavorably
changed the outlook for the immediate future of. transportation. Staple
and commodity markets were over-supplied and unwarranted prices were —
maintained; trafic was unsettled and labor becoming restless and appre-
hensive of a reduction in rates of pay put forward demands that were
denied, because they could not be conceded, with the result that serious
strikes developed. All of those causes combined brought about a loss of
earnings that transferred the outcome of operating our Line during the fiscal —
year from the customary profit to a material loss, and that despite the
most vigorously sustained effort Dy the Company’s forces to obtain a
more favorable result.

The net deficit that resulted from operations was $117,676.56, a decrease
of $3,243,488.80 as compared with the previous year.
‘The operating revenue was $3,336,/87.66, a decrease of $3, 498, 307. 02
from 1919, that was an exceptionally favorable year. |

The percentage of operating expenses to revenue was 101. 86% as
against 68.22%, or an increase of 33.64% as compared-with 1919. : Z

The successful operation of the Company’s Steamship Line was seri-_
ously interfered with during the year by aggressive revivals of the tem-
porarily compromised labor disputes of 1918-1919.

In July, 1919, we had six steamers tied up in commission at New
York with no departures between the 3rd and 29th of that month,
owing to trouble with Seamen’s Union that extended to all Steam-
ship Lines in the harbor;
Similarly, because of the Longshoremen’s strike, our steainship
service was practically discontinued from October 6th to November 8th;
In April, 1920, owing to a prolonged strike by employees of railroad
trunk lines operating railroad tugs, lighters and barges in New York —
Harbor, our ships were compelled to sail with very small cargoes until
the middle of the following June. =
The several described strikes, that ended in every instance by lab :
gaining its demands; seriously crippled operation and were very damag-
ing to revenue, whereby our Steamship Line was maintained under a
twelve months’ operating cost with barely a ten months’ earnings resulting.
Operating cost was additionally heightened during the year by in-
creases in the wages paid ships’ crews, stevedores, watchmen and checkers, —
and by a more general application of the eight- hour day to all classes of
labor as the outcome of extended negotiations to terminate strikes between
accredited representatives of all classes of vessel owners with those of the
respective labor unions.
_ The number of sailings outward from New York was reduced during —
the twelve months to 83, with a total of 240,008 tons carried, as against —
: 88 departures with 263, 328 tons carried for the previous year, a decrease A$
of 8. 86%. : |