Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-01
R. R. OUTLOOK
AS YEAR OPENS
Well-knOwn Officials Give
Views OH Questions
of the Hour
EVILS TO BE AVOIDED

'"PWtDHf' 1918, NCtC York Ercaiug Past lac
government operation of the rail-
ROADS began January /, 1918, although
under President Wilson'S proclamation
OF december 26. 1917, private owner
ship ceased at noon December "a ON
January of this year President Wi.
son appeared before Congress and out
ilned the Administration railroad bill
Before the close OF January freight
congestion became So severe and coal
SO scarce that Fuel Administrator
harhcId ordered country-wido Ave
day Industrial shut down. beginning
January IS. with ten idle Mondays TO
follow.
President Wilson signed the rail.
road bin on March Fl. on March %
the first Of the Government loans TO
the railroads was made, New Haven
getting S43,96i,OO0 for one year at
per cent to take up maturing notes.
on April l the $500. .O0O. 900 revolving
fund became operative. Up TO Decem-
Der ] the Government has advanced
10 the railroads S515,69O, 900, of which
/ S3l6,e06. 900 came from the revolving
fund, and $l99,is3.00O from the sur
plus earnings OF certain railroads over
ana above the Governments guar
antee, which was based on the aver
age of the three years ended June 80
l"ln Some Of the $515,690. 900 ad-
Nanced by the Government to the rail-
roads was on straight loans secured
by deposit of collateral such as the
New Haven transaction; some was in
temporary loans. which have since
been paid back.
May was a month Of startling rail-
way developments. First came the
announcement by Director General
McAdoo that so far sl4,O0O.0O0 al
ready had been advanced to the rail-
roads because of unearnod guar
antced interest. rentals and dividends.
on the 9th CAME the recommendation
that railway wages he increased by an
amount which would add S300.000.00O
to the annual payrolls. Exactly four
days later the railroad administration
recommended a % ner cent increase
in freight rates, and an increase in pas
senger fares ranging from 80 per cent
to 800 per cent on May 20 the presi-
dent of the Virginia Railway was de-
posed for disobedicncc in carrying out
improvement and bcttermcnt orders
Director General MCAdoo had author
lied improvement expenditures aggre-
eating $937.O00.O0O The next day
blanket order was issued deposng all
of the railroad presidents. some Of
them remaining as presidents oil the |
corporations to look after the interests !
of the shareholders and some of them
becoming Federal managers. on the ,
27th of May the increase in passenger |!
and freight rates were authorized 10 /
become effective June 10 and %, re- (.
speCtively.
For the month of June. owing largely |
to the payment of back wage Increases
under the wage award, the railroads re-
pOrtcd an operating deficit of S5S,9"?'" |
OOO comparcl with surplus for June !
1917, of SOS, 900 900 For the six months /
ended June 80. 1918. the net income OF
the railroads amounted to only Sl5l,65I,- /
600. compared with s44o. 900 for tie
period of 1917. As the /
guarantee called Tor net /
income of $50. 5000 month in round /
figures. or S4SO.0OO, 600 for the half year. .
on June 30 the Government faced a
deficit Of s399 900. 900.
July was the first month TO reflect
the 25 rer cent increase in freight rates.
which became effective January 25. on
January so there was an increase of
Il per cent authorized on all trans
continental freight rates. on March Is
here was an increase of Is per cent in
freight rates for the eastern railroads,
which handle so per cent of the coun-
rvs business. AS an offset 70 these
Increases I'm rates there were wage in
,reascs and the higher cost of fuel.
,,lipment and supplies. Here are
,hanges in gross and net earnings for
.9lS, reported so far, by months:
Gross = Net 70
81 slOG $50 900 $50 -SlG,2j7. 900 1870
- i2a. aG7 900 3G.2 p 3,19o,oOO 81
i35. 75a. 200 37.5 .. 24.3ia. 600 20
-. 17.GGi.3i5 "a r "a, iGG.I3l 81
- iSl.sIS.6S2 10 -o75. oOJ. .5S3 81
3I,733.Gas Ii.i59.Oei -