The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1918-02-08
BILLION DOLLAR
DEFICIT STARES
M'AD00 IN FACE
Sum the Government Required to
Pay Railroads Under the
Pending Bills
FURTHER SHORTAGE LIKELY
Ever Mounting Cost Of Operation
Increased by Probable Con
cessions to Labor
SHORTAGE LIKELY

Washington, u. G., Feb. 8.-Kali-
roads in 1917 earned about $95S,, O00,-
900 which is near the amount the gov
eminent will have to pay the roads
this year as compensation under nat
ional operation. This was indicated
by figures on revenues, expenses and
incomes of all railroads earnings
more than $1,000,0OO last year, avail
able today in unofficial computations
based on Interstate commerce COM
mission 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
senate committee having the railroad
bill in charge.
Figures for 1917 show that if the
railway income continues to decline
as it has in recent months, the gov
eminent will face a deficit in making
it's compensation payments, augment
ed by increases in wages and the con-
stantly rising cost Of material and
supplies.
Hoped for Cuts. ,..
On the other hand, the report says,
The administration 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 today by the latest
computations.
In December, the last month Of pri-
vate operation, rail earnings declin-
ed sharply, according to early reports
from railroads now being received by
the Interstate Commerce commission.
The average reduction of income was
estibated at thirty percent, caused by
the ever mounting cost of operations,
doubly increased by the bitter winter
weather Of December, together with a
sudden drop in revenues resulting
from traffic congestion and embar-
goes.
Some Past Figures.
Compared with the estimated in
come Of $95S, 100000 last year, the fig
ures for 1916 were $1,OS7,533, 900; for
1915 $716,476,0O0; for 1914 $692,33O,.
900 and for 1918 $S16,51O,OO0.
Last year the total revenues from
railway operations were $4,O3S, 900 900
and operation expenses were $2,S61,-
100000, leaving a net revenue Of ST.
177,000,000. From this were deducted
$217 100000 taxes, and minor items of
uncollectible revenue, to compute the
net income figure, which is compar-
able in a general way to the basis of
government compensation. Thes fir.
ures will be increased about four per-
cent by addition of reports from mu.
merous small roads, having operating
revenues OF less than 81 100000 year,
whose records are not included with
the reports of standard class one
roads.
Oast Years Decline.
The reason for the decline in net
income last year is shown graphically
b. Tue report. Operating revenues
were ten per cent greater than the
1852 100000 of 1916, but expenses
ran more than twenty percent above
the 3,273,000,0o0 mark of the year
previously.
Nearly all items of expense were
higher. Wage increases are estimated
at twenty percent 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 in 1917 than
in the year previous, but the increas-
ed revenues did not 90 far in counter
acting the steadily declining income.
War caused an immense increase in