John, thanks for posting that. I think by the mid-50's labor costs had
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escalated substantially in spite of dieselization, so the "net income"
disappeared. I'm surprised really to see NYO&W had almost a 20%
gross margin in 1941.
-------------- Original message ----------------------
From: "John Hile" <john66h@...>
--- In STMFC@..., timboconnor@... wrote:
To blame the NYO&W's demise on per diem is a real stretch!
You are absolutely correct. My choice of words ("Apparently not") was
a poor one. I should have said something like..."Apparently NYO&W's
share of revenue was not enough to offset its total operating costs,
including that of any per diem deficits."
In fact, 1941 statistics for average distribution of revenue between
types of expense and net profit is as follows:
41.1% Labor (Salaries and Wages)
16.1% Other Materials and Supplies Misc.
2.5% Hire of Equipment and Joint Facility Net Rentals
1.3% Loss and Damage, Injury to Persons, Insurance & Pensions
18.7% Net Operating Income
Note that "Car Hire" is the process which results in per diem charges.
Above numbers are from "Analysis of Railroad Operations", Joseph L.
White, Simmons-Boardman, 1946