The Birmingham age-herald., 1919-05-07
GOVERNMENT LOSS IN FIRST QUARTER
 $ SSl92, 100000
Entire Loss in 15 Months of Federal Operation of Rail- roads Amounts to Near
 ly Half Billion
8. Associated Prs.

Washington. May 8.-Director Gem ernl Hines in a discussion of recent railroad earnings tonight disciosed that:
 Governments deficit in operating the yenr, or the difference between net earnings and one-fourth of the guar anteed annual compens sa ton, was about S102, COG, GOO for all roads under federal management.
 The governments loss for 1918 was s226. 100000
 The entire government loss incurred in 15 months of federal operation was $41S. 900, 600.
 Marked reduction of freight traffic under records of similar periods of the last two years were responsible for the bad financial showing, and condj- tions in April, though not yet report ed fully. show no promise of improve ment
 Despite the big government deficits. the director general does not contem- plate any general increase in the level Of rates, but prefers to await restora- tion of normal business conditions.
 LOSS ON EXPRESS
 The government also incurred def icit of about s14,540.000 in eight months operation of the American Railway Express company, the consoli- dated express corporation. up to Mar -h 1. 1919.
 The present unfayorable results nat turaily lead to agitation of the question whether there ought to be an increase of rates, said Mfr. Hines in his state- rnent. My judgment is that the pres emf conditions abnnrrral serve IS a basis for any general change in the level of rates and that it is pref erable to defer action on that subject until there shall have been a fuller op- portunity to get a more reliable and possibly more normal measure of the conditions, meanwhile resorting to ey- cry practicable economy. studying the situation with the greatest care, ard keeping the public fully informed as to developments"
 The deficit of s1s2, 900 900 incurred by the government in January. February and March, as figured by MT. Hines, greatly exceeded the estimate mada pubM earlier in the day by the bu- reau of railway economics. because Mr Hines calculated the guaranteed compensation for the three months as three -twetfths of the annual compen- saticn. The bureau of railway eco noraics calculated each months share on the basis of the average for that month in the three pre-war years The railroad administration figures also in cluded small roads. not included in the so-called Class ]. which are under gov ernment control. and expenses of the central administration and cost of rail ard waterways
 NE Hines explained that his system or calculating tended to show the nailroa1 administrafion's position rather at a dis- advantage for the first three months. but added:
 Still it seems preferable to charge a full cne-twelfth of the rental into each Of these months rather than to run the risk of an i'opression arising that there is any disposition to understate the actual aesuita ~ ~
 LESS BUSINESS CAUSE
 ITO a large extent the unfavUraple re- suits for January. February and -cn are due to the fact that busins fallen of aRd that expenses c be correspondingly -readjusted the loss largely arises in connect the period of adjustment throug the country is lgoins lndustria prises generAllY have suffered em ment on accoutt of the fact thitl lCeRfsslasd en Pare Twel