The sun., 1918-12-27
Where the Bigger Railway Re-
ceipts Go.


Under Government operation 1t has
never been fair to compare the ter
rife increase of cost Of operation with
the increased revenue for any period,
| three months, six months, or nine
| months. from the first of the year.
| When the colossal wage increase was
added to the payrolls Of the railroads
the advances were dated back to jan
uary |. The traffic rate increases, Of
course, were not. Some of them did
| not begin till the middle of the year.
Others were not IN effect until as late
Us August. Until then. therefore, no
true comparison could be made.
Details of September revenues and
expenses, which DO make a fair com
parlson, are significant. The public
this year paid, in round numbers
S130, 100000 more for railway service
than in the corresponding month of
the previous year. This was for
freight, passenger, express and other
transportation. Only the Post Office
Department got off with lower bills
the mail revenue of the roads falling
from $4,T71,S14 to $4.343, 521.
Huge as was the increased cost
the public's burden-of operating the
roads, the carriers got virtually no
benefit out of the $l30,000,000 more
of revenues in single month. Main
tenanCe of way and structures in.
creased nearly $2O,O0O,O0O; malnte-
nance of equipment nearly S60000,-
600; transportation some $4,000, 900.
The total railway operating expenses
ran up from S244,3l6,6S1 in Septem-
Der. 1917, to S370,604, $50 in Septem-
Der, 1918. The operating expenses,
In other words, ate up practically all
the S130,000,000 of increased Septem-
Der receipts from increased charges
against the public, SO that the net
revenue from railway operation in
round numbers was only S3.O0O,0O0
more than in September, 1917.
There are soma other details also
important as they are significant. The
average increase of receipts from pas
sengcrs carried one mile and from
freight, the ton, carried one mile, was
slightly more than 2S per cent. In
each case. There was, however
decrease In passenger travel In the
New England district of "a per cent.
for September; in the central dis
trict of 40 per cent. in the Ohio-In-
diana district Of so per cent. in the
central Western region So per cent.
in the Northwestern region of II
per cent. In the Allegheny region
there was an Increase of 1873 per
cent; In the PocahOntas region of
SO per cent; in the Southern region
of % per cent. In the Southwestern
region of ID per cent. In all regions
taken together the decrease virtually
blotted out the increase.
The railroads, then, had such re-
markable results as loss OF pas
senger traffic In the Eastern region of
g. per cent, but gain in passenger
revenues of so per cent; in the three
Southern regions gain in passenger
traffic of about ID per cent. with an
increase of passenger revenues of
more than 81 per cent, and in the
Western region n loss OF about 10 per
cent. in traffic, but gain Of 10 per
cent. in revenues.
or course, the gain in revenues, de-
spite loss in traffic, is accounted for
by the heavy Increase in passenger
rates. But it Is TO be remembered
that In September, as In all months
Of the year, there was huge trans
portatlOn of troops and of other Gov
eminent servants travelling on war
business. The same thing Is true of
freight traffic. Millions and millions
Of tons not only of munitions, but of
all manner of supplies, were moving
on the railroads day and night, every
hour and every minute.
The Government could stand, had
to stand, any traffic rates. whether
the increased receipts went to the
railroads themselves or were swal-
lowed up by others. The Interesting.
the very important question is, VIII
general business, can general business,
In spite of the enormously increased
rates, keep the railway traffic up at
top notch as the Government. with It's
prodigious war business, kept 1t up?