Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-24
RAIL WAY EARNINGS
DROP S25O,0O0,OOO
Increased Operating Revenues
More Than Eaten Up by
Mounting Expenses.
LABOR BILL IMMENSE ITEM
First Year of Government Con-
troll Shows Lowest Net
Returns Since 1915.
LABOR BILL IMMENSE ITEM
fBy Associated Press. |

WASH1NGTON. January 23.--Rai!-
roads in 1918, undc. government con-
troll and unusual war conditions
earned about s71S.0O0.00O. or $3.50. 900 :
900 less than in 1917; s370.00o.oOO less
than in the record year OF 1916. and
about the same as in 1915.
This became apparent to-day on the
basis Of definite reports to the Inter
state Commerce Commission OF earn
ings of l35 principal railroads-those
having an annua! operating revenue Of
more than sl,000.OO0 for eleven months
and unofficial calculations OF Deccmbc-
earnings. which railroad administra-
ton reports indicate will be consider
ably smaller than those of the preced-
ing months. Although subject TO slight
revision. the hgurcS afforded the first
public view OF the results OF railway
operations last year. so far IS earnings
are concerned.
Receipts from freight. passenger. cN-
press and other transportation. during
;he year amounted TO approximately
ir the previous year. Operating eX-
penses jumped TO about s397l 900 900
or about Sl119,U00.0e0 more than in
the preceding year.
DECEMBER FREIGHT TRAFFIC.
DROPS 0NE-HALF
Preliminary reports to the railroad
administration indicate that freight
traffic fell OF in December. with The
ments for Europe and the cessation OF
the hauLing of other war materials.
while expenses could not be reduced
materially. This condition sent the net
earnings. or railway operating income.
which has been declining steadily since
the record month of last July. to prob
ably s25.000.000. or s30.O00,000. Of
fcias believe. This may be compared
to income OF s59.2U4.0OU in December
of 1917. when earnings wen, to what
was considered a very low record.
The outstanding features of the rail-
way earnings situation last year were
that freight and passenger rates were
annually. or a s4Sooooooo, 10000 @nYVVSeoeGS in the siS
months during which they were efec-
tive. while wage advances added $685.
100000 to operating expenses.
WAGES NAY TAKE MORE
THAN IS ESTIMATED
railroad administration accountants.
but are not, considered -,flnah IS Wages
more mo ). Il than "a is % now l beiievod ve amou- 10
The raii-oad administration account
ants now report that in 1918 the ST.
10000. 600 payroll of the year previous
consequently sS,a46. ooo.o 900 was vas paid
out last year TO the 100000 railway
employees: Many wage increases were
effective for only the latter part OF
the year. and If these run through the
present year, even without other ad-
uitionS Whlcn may come from act tion
on pending applications fo- more pay.
they would make s7S4,000.O0O addition.
al wages. The wage level at the end
of 1913 was little more than 45 per
cent higher than at the beginning of
the year, when the government as
sumed control.
INDICATIONS POINT
TO FURTHER REDUCTIONS
PROSPECTS for Improvement OF the
earnings situation this year depend
mainly on whether business during The
read)ustment period continues active
and gives large volume of freight
traffic to the railroads. Indications
point TO reduction of traffic and con-
sequentiy TO reduced earnings. accord
Ing 10 the raiirond administration.
Ihese facts bear only an indirect
relation to the governments deficit
resents iets the difference between the ne. ne
income received by the railroads and
the aggregate. calculated al littie
iess than ssoo.oo0,ooo which the gov
year. iot '"e
Neither does this take into conside--
adlon the expenditures of about s5SS
100000 last year for capital purposes
20 make permanent improvements and
ony cars and locomotives