The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-02-20
AN EVER WIDENING GAP.

The statistics show that the present
system of government operation of the
railways would have proved far more
expensive than private operation, even
in the absence of any advances in
wages. Railway earnings and ex-
penses for December, 1918, as report
ed by the Interstate commerce COM
mission, show that the downward
trend of railway net operating income
continued thru that month. Net OPP
Grating income per month steadily de-
clined from SIPS. 100000 in August to
S57, 100000 in November. In Deem
Der, for IT'S large roads, it was only
$23. 900.
The bad showing in December. says
the Railway Age, was due almost en-
tireIy to an increase of operating ex-
penses. In December, 1917, the
weather and other operating condi-
tions were as bad as V ere ever known,
and yet the operating expenses of the
railways included in the commission
report were only 1898, 900. In De-
cember, 1918. the weather conditions
We're as favorable to economical oper-
alton as were ever known in that
month, and yet the expenses were
s3T5, $4,000, making an increase over
December. 1917. of 800. 900.
Undoubtedly this enormous increase
in expenses, continues the Age, was
partly due to the fact that large retro
active advances in wages were charged
into the December accounts. On the
ha 10
advances to be made to the train serv-
| ice employees, and the railroad admin
I istration is not making adequate ex-
, penditures for maintenance, which
would be chargeable to operating ex-
penses. The December figures alone
would indicate that operating expenses
are increasing at the rate of over
1000, 100000 year. 1t is to be feared
that when all necessary adjustments in
the accounts are made, and advances
in wages now pending are granted, il
will be found that for handling a cor
responding amount of traffic, operat-
ing expenses are running at the rate
# $1,50O,00 900 a year more thar
they were in 1917.
The statistics for the month of De
cember are accompanied by statistics
Showing the results of the same roads
for the twelve months of 1918. The
IT'S large roads included, having a
mileage of 214,0OO miles, had an in
crease in earnings during the entire
year of 1924. 900, or 21.6 per cent;
an increase in expenses of 81, 090, 000..
900, or 40 per cent; and a reduction
of operating income of 1855, 900, 900
or almost 80 per cent. OF the increase
in total earnings, over $500, 900, 0OC
must have been due to advances il
rates. Without the advances in rates
the railroad administration would
have had a deficit at the end of tht
year exceeding three quarters of g
billion dollars.
In spite of the enormous increase
in expenses, officials of the railroad
administration continue to point gu
economies which have been effected
These economies are real. but most o.
them cannot be permanent. For ex
ample. r. H. Ashton estimates tn,
economies he has effected during the
year, first as director of the western
region. and later of the northwestern
region, at $s4,00o.oOO. 1t is a notabl,
fact, however. that Mr.. Aishton's sta
tistics show that over s23,0O0,000 o
these economies were effected by re
auctions of passenger train Service
most of which must be temporary.
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