| Tuesday, November 2, 1954 | The Globe and Mail (Toronto) | Page 22 |
CNR faces large deficit in 1954
Revenue $16,695,000 Lower
Montréal (CP).—Officials of the Government-owned Canadian National Railways said yesterday September figures strengthen earlier estimates that the system will end the year with a "substantial" deficit."
At Sept. 30, the railways' net operating revenue was down $16,695,000 from what it was a year ago. The figure contains no provision for taxes, equipment rentals and fixed charges.
The railway officials announced some months ago that they expected to end the year with a deficit because of a large decrease in both passenger and freight traffic. A drop in grain movements was a large factor in the decrease.
The CNR had small net surpluses in 1953 and in 1952. It had an income deficit of $15,000,000 in 1951.
The privately-owned Canadian Pacific Railway reported last week that its net earnings for the first nine months of this year amounted to $15,478,025 compared with $17,871,302 in the corresponding period of 1953.
The financial statements of the two railways are not strictly comparable because they do not use uniform accounting systems.
The CNR statement showed operating revenues of $477,302,000 and operating expenses of $470,006,000 for the first nine months of this year, leaving net operating revenue of $7,296,000, before taxes and other charges.
Comparable figures for 1953 were operating revenues of $529,532,000, operating expenses of $505,541,000 and net operating revenue of $23,991,000.
In September operating revenues were $53,329,000 compared with $59,897,000. Operating expenses were $52,250,000 against $55,892,000.
CNR officials said that operating revenues were down this year depsite a cut of $35,535,000 in operating expenses during the first nine months of the year.
The cost of operating trains and maintaining equipment had been cut but the company had decided that the track work program which had been planned for the year should be carried out "in the interests of increased efficiency of train operation and passenger safety."
Railways: C.N.Rys.