Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1918-02-08
.OPPOSITIONTO EARNINGS FOR
BILL IS HEARD 1917 ARE BIG
Big Sum Realized by Roads
During Year Just Past;
Government Offer VIII
Be Slightly Above This
Republican A. p. Leased Wire1


WASHINGTON. Feb. Railroads
in 1917 earned about s95S, 100000 which
is near the amount the government
will have to pay the roads this year
as compensation under national opera
ton. This was indicated by figures on
revenues, expenses and income of all
roads earning more than $1,000000
last year, available today in unofficial
computations based on interstate COM
merce commission reports for eleven
months and an estimate for December.
The sum the government will have
to pay the roads under the bill pend
ing in congress is estimated at $685.
100000 by Chairman Smith of the SEN
ate committee having the railroad bill
in charge.
Figures for 1917 show that if rail-
way income continues TO decline as it
has in recent months, the government
will face a deficit in making its COM
pensations payments, augmented by
increases in wages and the constantly
rising cost of materials and supplies.
On the other hand, the railroad ad-
ministration hopes to be able to cut
| operating expenses sufficiently and
| economize on charges necessary only
| under competitive conditions, TO offset
the declining income.
In December. the last month under
private operation, rail earnings de-
clined sharply. according to early re-
ports from railroads. The average re-
duction of income was estimated at 80
per cent caused by the ever-mounting
cost of operations, doubly increased by
the bitter winter weather of Decem-
Der, together with a sudden drop in
revenues resulting from traffic con-
gestion and embargoes.
Compared with estimated income of
$95S,000.OO0 last year the figures for
1916 We're S1,0S7, ,533 900; for 1915,
S716.476. .000 for 1914, s692 800, 900, and
for 1913, $S16.51O,0OO.
Last year the total revenues from
railway operations were S403S, ,0O0, ,O0O
and operating expenses were S2,S61,-
100000. leaving a net revenue of S1.177,-
100000 From this were deducted S2I7,-
100000 taxes, and minor items of un-
collectible revenue, to compute the net
: income figure, which is comparable il
a general way to the basis of govern
ment compensation. These figures viii
be increased about per cent by addi-
tion of reports from numerous small
roads, having operating revenues O.
less than $1,0O0,000 a year, whose rec
ords are not included with the report!
of standard class one roads.
The reason for the decline in net in
,, come last year is shown graphical,
by the report. Operating revenues
! re ten per cent greater than tn
1892, 100000 of 1916, but expenses ran
, more than 20 per cent above the s3,273,
+ 100000 mark of the year previously.
Nearly all items of expense wer
hi
. at 30 per cent Cost of coal, train sup
/ plies and repairs went up by bounds
with which the immense receipts iron
r freight and other revenues did not kee
: pace.
People Travelled more in 1917 than il
: the year previous. but the increases
j revenues did not go far in counteract
d ing the steadily declining income. Wa
caused an immense increase in haul
ing, and from freight the roads receive
most of their revenues.
These revenues are estimated at So,
SOS,0O0,000 as compared with s2,573,
100000 in the banner net income yea
of 1916. Passenger revenues wer
/, SS10,000,000, as compared with sos,
600, 900 the year before. Receipts fror
4 mail were actually smaller than
1916, despite the fact the bulk of ma
transported was much greater Onl
S5S.703, 600 were received from the gov
ernment on this account, nearly $4,000.
600 less than in 1916. The reduction
: attributed to the readjustment of tn
y basis of payment from weight to spac,
: Receipts from express companies fC
: hauling jumped from S90,293,000 j
Y. 1916 to s106, 100000 in 1917
= For maintenance of way and struc
d lures. railroads spent s452, 800, 90
1. about s2S,000,000 more than the yea
II before. For maintenance of equip
d ment, the cost was $692, ,00G, 600. as CON
It pared with s597,915,000 in 1916.
d The biggest increase came in sc
It called transportation expenses, whic
d includes the principal items of trai
s operations. This amounted to s1,525
d 100000 or s341, 100000 more than II
Sl,1S4, ,O00, 900 figure of 1916 A govern
n ment commission estimated the adde
g financial wage burden on railroad
o caused by the Adamson act at SCI, 900
10 000 most of which is included in trans
e portation expense. Other wage il
: creases are spread out in nearly ever
d expense classification.
-e In addition to short hauling and con
s mon use of facilities, the governmel
y hopes to effect big savings this year !
IS eliminating expense of traffic solic
IS tation agencies, maintained by ind
l. vidual roads under the competitiN
| Continued on Page Two)