Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-02-08
RAILROAD EARNINGS ARE
LESS THAN IN YEAR 1915
III Decline Continues, Government
VIII Face Deficit In Making
Compensation Payments.
HOPES TO REDUCE EXPENSES
bad Weather in December Largely
Responsible for 80 Per Cent Re.
duction in Rcccipts-Higher lcx-
penscs Cut Down Gross Income.

WASHINGTON. February Trail
roads in 1917 earned about so5S,000,000
which is near the amount the govern
mcnt will have to pay the roads this
!. year as compensation undor national
operation. This was indicated by fig
urcs on revenues. expenses and income
of all roads earning more than 81 .Oo0.-
600 last year, available to-day in un-
Official computations based on Inter-
state Commerce Commission reports for
eleven months and estimate for De-
ecmber.
Figures for 1917 show that il rail-
way income continues to decline as 1t
has In recent months, the government
VIII face deficit in making its COM
pensation payments, augmented by in
crcases In wages and the constantly
rising cost OF materials and supplies.
On tho other hand, the railroad adj
ministration hopes to be able to cut
operating expenses sufficiently and
economize on charges necessary only
under competitive conditions to offset
the declining income. The size OF these
items. which will play such a big part
in railroad financing this year. were
disclosed to-day by the latest compu-
tations.
In December, tho last month under
private operation. rail earnings de-
clned sharply. according to early re-
ports from railroads now being re-
ccivcd In tho Interstate Commerce
Commission. The average reduction OF
income was estimated at 30 per cent.
caused by the cver-mountinE cost OF
operations, doubly. increased by the
bitter winter weather Of December. to-
Ecthcr with sudden drop in revenues
resulting from traffic congestion and
ombarEoes.
LAST YEARS INCOME COMPARED
WITH 1915, 1913, 1914 AND 1914
Compared with the estimated income
OF f95S.ooo.oo0 last year, the figure for
:: 1916 was *l,Os7.53s.0oo: for 1915, s71G.-
476,ooo; for 1914. sGo2.s3o, 0oo and for
1919. is16,51o,ooo.
The reason for the decline In net
income last year is shown graphic
ally by the report. Operating revenues
were 10 per cent greater than the
s3,G2c,0oo.oo0 OF 1916. but expenses ran
more than 90 per cent above the So
3j3,oooo00 mark OF the year prcvi-
GUS.
People Travelled more in 1917 than in
the year previous. hut tho increased
revenue did not go far in Countcract-
ing the steadily declining income. War
caused an immense increase in hauling.
and from freight tho roads received
most OF their revenues.
These freight revenues are esti-
mated at s2.Sos, 100000, as compared
with 2.573.ooo.o0o in the banner net
income year OF 1916. Passenger rcvc-
nues were $4,000. 900. as compared
with s7os,ooo,o0o the year before.
Receipts from mail were smaller than
In 1916, despite the fact that the bulk
Of mail transported Was much greater.
Only SJS.1o3.o00 was received on this
account, nearly 100000 less than in
1916. The reduction is attributed TO
the readjustment Of the basis OF pay
mcnt from weight to space.
Receipts from express companies for
hauling jumped from seoos3,o00 in
1916 TO sl06.00o,o0o in 1917
For maintenance OF way and struc-
lures. railroads spent Si52. 600. 900.
about SoS,00o,o0o more than the year
before. For maintenance OF couiprnent.
the cost was 100000 as compared
with s5e7.si5,ooO in 1916
The biggest increase came In So
called transportation expense. which
includes the principal items Of train
operations. This amounted to s1.525.-
100000. or s"4l.O00,Oo0 mere than the
sl.lS40o0,o00 figure OF 1916 4 gov
crnment commission estimated the ad-
ded financial wage burden on railroads
caused by the Adamson act at $4,000
600. most OF which is included in trans
portation expense