Summary - TST 21


TST 21

José Luis Montoya Chinchilla e Isidoro Guzmán Raja
La Compañía de los Caminos de Hierro del Norte de España: análisis de su cuenta de explotación (1900-1925)

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Key Words: Railways, Business History, Accounting, Accounting analysis.

[ Abstract ]

The present paper examines the historical evolution of income and expenditure of the Compañía de los Caminos de Hierro del Norte de España (Northern Spain Railway Company, ‘Norte’), consisting of eleven lines once its network was completed in 1892.
After a historical analysis of the creation, expansion and operation of the company, its income statement is examined through a comparison among its main lines. On the basis of our study of twenty-six reports of the Norte company for the period 1900-1925, the results demonstrate financial hardship endured by the company and its main lines during the period characterised by the so-called ‘Railway problem’, in which the Norte company increased its operating income at an annual average rate of 8.6% due to the increase of the volumes of freight and passengers carried, as well as to the soaring rise of rates approved in 1919. But these increases did not offset the large increase in operating expenses, mainly fuel and staff costs, which increased by 14.1%. This situation in time would result in 1941.