Evening journal., 1919-07-04
half BILLION Is
NEEDED FOR ROADS
Officials See Large Sum is
Necessary to Make Lines
Sell-Supporting
PRESIDENT WILSON'S
AID is SOUGHT

WASHINGTON, July 3.-Additiona
revenues to the amount of sJ0OOO,0OO a
year are necessary TO make the rail
roads OF The United States self-supporl-
ing either under federal or private op-
Grafton. lt was stated aulhoritatiyely
here yesterday by railroad officials. who
drew their conclusion from a reliable
I forecast Of the government deficit for
I May and the average for the first 1--WE
months or 1919.
This estimate Is higher than that OF
Director General Hines. whose most re-
cent statement placed the amount at he
tween s3OOO0OOO0 and si00000000 70
indicates TO responsible railroad officials
the serious situation confronting the
roads. and shows the size Of bill TO be
borne by the travelling and shipping
public II the present high levels OF
labor and material cost are TO be main
tanned
The public must pay this enormous
bill. while the roads are under govern
ment control through the MEDIUM Of
lakes to cover the appropriations by
Congress for operation OF the roads, or
under private control i'm the form Of
| higher rates than ever were dreamed of
in the past
The situation has reached the point
where Director General Hines is pre-
pairing 20 lay 10 before President VIII
son at the first opportunity. Mr..
Hines sim Is said 10 beeof the opinion
I that further rale Increases are not ad-
visable at this time on account OF
their effect upon general business con-
ldlllons. lie Is regarded as being op-
posed 10 any Increases before October
/ and 90 look Will disfaYor upon any
increases beginning shortly before the
roads are returned TO private owner
ship.
ON the basis Of the estimates OF The
railroad onlclals for the operating deil-
cu during ihe current calendar year,
some authorities believe that rate ad-
vances of as high as 80 per cent in
some instances may be necessary TO
make the roads soii-~upporung uhde. I
oXisiing expenses. Director General /
Hines is quoted as having eNpresseu
The view that rate increases ot 90 per /
cent would result In am automatic /
falling off Of 80 per cent in business.
The deficit TO be born 10y lhc federal /
government for The operation OF INC
roads during The met ne menus ol I
1919 viii be about S2l5.t'3tW'.
This amount eqlais The total dellcli
incurred during the Gce lW,Ne months |
of government cpcili"h
Advance returns 10 the interstate I
Commerce Commission by approximate |
lv % per cent OF the class ! roads IN.
dicates an operating deficit Tor May OF I
$50 100000. which Is Si,J0OOOO less than |
the average deficit for The hrst lout I
months Of 1912 Neither The May ng-
ures nor the total include Rinor eA- /
penses Of the railroad Administrations I
which would make The aggresaie lor /
The five months somewhat higher.
These figures do not include MINOR |
expenses OF the railroad adninislra- .
iion. which make the total loss some /
where higher.
Operating revenues FOR May with q
small mileage not yet reported, were 1
SiOI.9i2 GOO. an increase Of 9.3 per cent |
over 1916. Operating expenses were /
$3.50. SCI 600. an increase Of - per cent; /
taxes were si5.6ii.OO an increase OF (
one per cent; and The net operating /
income was SIS $50 0O0, a loss or i6i /
per cent. The standard return, or May I
average net operating income IN the I
three-year test period. is S1i,i26OOO. I
This leaves a government deficit for the |
month OF s3S.s96.OoO May freight
lraGac. while i35 per cent. under The
record figure for May. 1918, is only one
third OF one per cent. below The test
period average for May, so that this
years returns are closely comparable
with those before The government
took control Of operation. Passenger
traffic is more than 30 per cent. in eN-
cess Of the test period, due largely 10
troop movements, and with The higher
rates for civilian passengers, is pro
ducing about 20 per cent greater rev
enues.
For the FIRST nye months OF the year