New Britain herald., 1919-01-02
L0 GOVernInent
 Up b

ment's loss in operak
 in 1918 is calculatad
 ninistration officials
 $150, 100000. This Fl
 difference between HI
 amount the governn1 enfI
 railroad companies as III
 properties-the so-ca11ed M return-and the net inconl9s
 government will receive
 railroads.
 1t will take six months nlor6 celpts from the increased freight 10 permit the government to recouY3 losses, officials believe If congr8S does not approve the proposed five1 year extension of federal control, arfR if. as a consequence, President Wilsoh carries out his announced intention bf returning the roads to private man agement at an early date the govern ments loss will not be made up.
 This deficit does not include the big sun-between $160, 900, 900 and s20O.- 900, 000--which has been loaned to railroads to help them pay for the extensive program Of Improvements and purchase of new cars and loco motives. These loans will be repaid eventually.
 
 stated exactly until the compensation of each road is finally determined, and until the Interstate Commerce Com mission complies figures on earnings and expenses for November and De- cember. Officials believe, however that the aggregate government com pensation for all roads will be about $950, 100000, and that the net income from railroad operations credited to the governm ent will be a little more than $S00,G00,000. For ten months up to November 1, the governments net income from the railroads, re- ported by the Interstate Commerce Commission, was $605, 100000.
 Operating revenues for the entire year, officials calculate, probably amounted to $4,8O0. 0.000,000, more than ever before in railroad history, and operating expenses probably ran up to $3,S00. 100000. This left $1,- GOO, 0,000,000 of net revenue which was cut down more than 200,000,00 by deductions for ordinary taxes, rentals for equipment not owned by railroad companies and other incidental items.
 War taxes and expenses of main taining financial and other corporate offices, including salaries of officers not actually employed il physically operating the railways must be paid by the railroad companies out of the $950, 100000 which the government guaranteed them.
 For the railroads, 1918 was & year which broke all records of revenues and expenses. Although receipts were nearly 20 per cent. greater, expenses were even more. It took so per cent. of the operating revenues to pay op- erating expenses, although only 70 per cent. was taken for that purpose in 1917. Operating expenses, which, with estimated figures for the last two months, amounted to $3,800,0 ,000,- 900 were more than $1,000,000,- wages are estimated variously to have been responsible for between $600,- 100000 and $800,000,000 of this $1,- 900, 900.
 In the ten months ended November l, for which the interstate commerce commission has compiled definite re- ports, receipts from freight, passenger and other revenue sources were $4,- O32000,0O0, or 8 little less than the s4,041, 900, 900 revenues for the en- tire year of 1917. Tn the ten months $2,S1S,0 ,000, 900 came from freight and 56,000,000 from passenger traffic.
 Operating expenses for the ten months dIIlOunIGO LO bO,L4 fUVOsOVVt or about $40O,000,0O0 more than the S2,S52, 100000 expenses for the entire year of 1917. So-called transportation expenses, including the bulk of the cost of running the trains, amounted to $1,666, 900, 1000, maintenance of cars and locomotives cost $897, 7,0O0,- 900 and maintenance of tracks, road way and structures cost $521, ,000,0 900. Most of these figures probably will be raised 20 per cent by returns for the last two months.
 The reports do not include small roads with less than $1,000,000 reve- nue year.
 Eastern roads in the ten naonths re- ported s1,S28, 100000 revenues and s1,551, 100000 expenses. Western roads $1,349, 100000 revenues and s890,00O,00O expenses, and Southern roads $642,000,00o revenue and S493.00O,000 expenses.
 Director General McAdoo spent New Years day working on his final report on government railroad opera tions for 1918 for submission to President Wilson. He now plans to leave Washington for a vacation i'll California next Sunday, but will re- tain his functions of director general until a successor is named by the president.
 
 BIG NEWSPAPER MERGER.