Arizona republican., 1919-01-02
J. ]. LOSES 15O
 MILLIONS AS \
 RAILROAD bOSS
Doesn't Include Millions Loaned Revenues Great CT Than Ever Operating Cost Exceedingly Large Last Two Months Figures Not Determined-Expe 200o Raise.
Republican A. p. Leased wIrel

WASHINGTON, Jan. 1-The govern ment's loss in operating the railroads in 1918 is calculated by railroad admins tration officials at less than $150,000,- O00 This represents the difference be- tween the amount the government will be compelled to pay railroad companies as rental for the use of their properties the called guaranteed return-and the net income which the government will receive from the railroads.
 It will take six months more of re- ceipts from the increased freight rates, to permit the government to recoup its losses, officials believe. If congress does not approve the proposed five year extension of federal control, and as a consequence President Wilson carries out his announced intention of returning the railroads to private man. agement at an early date, the govern ments loss will not be made up
 This deficit does not include the big sumS-between S150,000,000 and $200,- 900, ,000-which have been loaned to railroads to help them nay for the eX- tensive program of improvements and purchase of new cars and locomotives. These loans will be repaid eventually.
 Exact Loss unknown
 The governments loss cannot be stated exactly, until the compensation of each road is finally determined, and until the interstate commerce commis- sion complies figures on earnings and expenses for November and December. Officials believe, however, that the az gregate government compensation fol all roads will be about s950, 900, 900, and that the net income from railroad oper- ations. credited to the government, will be little more than $500 000, 900. For the ten months up to November 1, the gov ernment's net income from the rail- roads, as reported by the interstate commerce commission, was $605, ,000, 000 Operating revenues for the entire year, officials calculate, probably amounted to $4,032, 100000, more than ever before in railroad history, and op erating expenses probably ran up to | S3, 800, 100000. This left billion dollars of net revenue, which was cut down more than $200,000,000 by deductions, | for ordinary taxes, rentals for equip ment not owned by railroad companies, and other incidental losses
 War taxes and expenses of maintain ing financial and other corporate ot- fees, including salaries of officers not | actually employed in physically operat- ing the railways, must be paid by the railroad companies out of the $950, 0,000,- 1 900 which the government guarantees them.
 1918 Broke Revenue Record For the railroads, 1918 was q year which broke all records of revenues and expenses. Although receipts were nearly 20 per cent greater, expenses were even more. It took eighty per cent of the operating revenues to pay oper- ating expenses although only seventy per cent was taken for this purpose in 1917. Operating expenses, which with estimated figures for the past two months amounted to $3,S00, ,000, ,000 were billion dollars more than in 1917 Increased wages are estimated var iously to have been responsible for be- tween s600,000,000 and sS00,000,000 of 1 this billion.
 In the ten months ending November 1, for which the interstate commerce commission has ct implied definite re- ports, receipts from freight and passen- ger and other revenues sources were S4,382 100000, or a little less than the $4,041 100000 revenues for the entire year of 1917. In the ten months, s2,81S, 100000 came from freight and sS56,e00, 900 from passenger traffic.
 Operating Cost High
 Operating expenses or the ten months amounted to $3,247,000,000, or about $400, 100000 more than the s2,S52- 100000 expenses for the entire year o1 1917. So-called transportation eX- penses, including the bulk of the cost ol running the trains, amounted to $1,- 666,000,000; maintenance of cars anc locomotives cost sS97 7,000,000, and main tenance of tracks, roadway and struc- lures cost s521, 100000.
 Most of these figures probably vii be raised twenty per cent by returns for the last two months.
 The reports do not include smal
 roads with less than s1,000,000 revenue. a year.
 Eastern road- in the ten months, re.
 ported s1,S2S,000,0O0 revenues and ST..
 551, 100000 expenses; western roads S1, 349, ,00O, 900 revenues and sS90,000, 900 ex 1. penses: and southern roads s642, ,000,00l
 revenues and s493,OO0,O0O expenses. | ----O-----