Show R R. R RS RIS EXPECT CUT GUT IN INCOME Believe Earnings in 1927 Will Vill Show Decrease Over Last Year NEW YORK Nov 18 By By The Associated As Press D Press Despite Despite the attain attain- attainment attainment ment of the greatest operating ft- ft efficiency on record railroads expect a 0 decrease of earnings this j year ear In comparison with 1926 1928 It was reported Thursday at the annual meeting of the he American Railway association Inability of the roads to reduce ex- ex expenses expenses in the same ume ratio as 3 the fall fati falling fating all all- allIng Ing ng of revenues reven es was held responsible by y the bureau of railway economics for the expected decrease Rising wages and falling volume of both freight and passenger traffic were cited as factors which maintained ex expenses ex- ex expenses expenses at the 1926 1928 level Net operating Income of class 1 railroads for the first nine months of this his year it was reported was 83 below the same period of 1926 1928 Freight traffic showed a decline of one per cent cent and passenger traffic reached r ched the lowest volume since 1916 Increased wages added to the 1927 payroll the report stated and while taxes were slightly reduced the reduction was smaller than the decline in revenue and the ratio of taxes to revenue now is at the highest point ever recorded |