Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-02-08
Bill Now Before Congress Pro-
vides for a Guarantee of
S945,000,00 This Year,
Chairman Smith Announces,
1917 EARNINGS WERE
ABOUT S958,000.000
Administration Hopes
to Cut Operating Expenses;
Investigation Shows Jump
in Cost of Supplies,
r.r Won ava ,ousn.. SPECIAL l...ro ~,.si

Icy EoR SIHa JOURNAL SPECIAL LEAsEp wsssl
Washington, Feb. 7.--Bailroads in
1917 earned about 1858 900, 900 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 $1,000
coo last year, available today in un-
official computations based on Inter-
state Commerce 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 s9i5,-
600, 600 by Chairman Smith of the
senate committee having the railroad
bill in charge. g.. ...
Figures for 1917 show that If rail-
way income continues to decline as
it has in recent months the govern
ment will face deficit in making its
compensation payments, augmented
by increases in wages and the con-
stantly rising cost of materials and
supplies.
On the other hand, the railroad
! administration hopes to be able TO cut
operating expenses sufficiently and
economic 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 10 early re-
ports from railroads. The availa bic
reduction OF income was estimated
| at 80 per cent, caused by the ever
mounting cost of operations, doubIy
increased by the bitter weather OF De-
cember. together with sudden drop
in revenues resulting from traffic
congestion and embargoes.
Compared with estimated income of
$95S.OO0,0O0 last year the figures for
1915 were s1,Os3583, 600; for 1915.
$716,476,OOo; for 1914. $692, $3.50, 900.
| and for 1913, $S16,510,000.
Revenues From Operation.
Last year the total revenues from
railway operations were $4.03S, ,000.-
600 and operating expenses were
$2,Sb1 900, leaving net revenue
of SLIT, 100000 From this were
deducted $2i7000,000 taxes, and
minor items Of uncollectable revenue.
to compute the net income figure,
which is comparable in a general way
to the basis of government compen-
sation. These figures will be In
creased about 1 per cent by addition
OF reports from numerous small
roads, having operating revenues or
less than $f,0O0,OO0 year. whose
records are not included with the re-
ports of standard class one roads.
| The reason for the decline In net
income last year is shown graphical
ly by the report Operating revenues
We're 10 per cent greater than the
$S,622,OOO,00O of 1916, but expenses
ran more than 20 per cent above the
$S,27S, 100000 mark of the year pre-
vlousy. -
Nearly all items Of expense were
higher, Wage increases are estimat-
ed at 20 per cent. Cost Of coal train
supplies and repairs went up by
bounds, with which the immense re-
ceipts from freight and other reve-.
nues did not keep pace.
People Travelled More,
People travelled more In 1917 than
in the year previous, but the Increased
revenues did not go far In counter
actins the steadily declining income.
| war caused an immense increase in
| hauling, and from freight the roads
derived most of their revenues.
| These revenues are estimated at
S2,SOS,O00,000 as compared with
$2.573, 900 in the banner net in
come year of 1915. Passenger reve-
nues we're $4,000, 900, as compared
with s70S,00O,0Oo the year before.
Receipts from mail were actually
smaller than in 1915, despite the fact
that the bulk of mail transported was
much greater Only $5S,703,000 were
received from the government on this
account nearly $4,000, 900 less than In
| 1916. The reduction Is attributed TO
the readjustment Of the basis of pay
ment from weight to space.
Receipts from express companies
for hauling jumped from ss0.2s2, 900
in 1916 to s106, 200, 900 in 1917,
Maintenance Costs.
For maintenance of way and struc-
lures, railroads spent s452,900, 900,
about s2s,O00,000 more than the year
before. For maintenance of equip
ment, the cost was $500, 900, 900, as
compared with s597, ,915, 900 in 1916.
The biggest increase came in So
called transportation expenses, which
includes the principal items Of train
operations. This amounted to ST.
525,000.000 or S41,00o,000 more
than the sl,1S4, 1000. figure Of 1915.
A government commission estimated
the added financial wage burden on