The commercial. (Union City, Tenn.) 190?-193?, 1919-01-31
LESS TRAFFIC INDICATED
NO REDUCTION IN WAGES
Government Ownership of Railroad
Shows Loss of $196, 100000.

in 1918 under government control
and unusual war conditions earned
about $71S,0o0.0O0 or $250, 900, 900
less than in 1917, 1870, 900, 900 less
than in the record year of 1915 and
about the same as in 1915.
y This became apparent to-day on
the basis OF definite reports to the
Interstate Commerce Commission of
earnings of 1876 principal railroads
those having annual operating reve-
nues of more than $1,000, ,000-for
eleven months and official calculation
of December earnings, which railroad
administration reports indicate will
be considerably smaller than those
of the preceding months. Altho sub
ject to slight revision, the figures
afforded the first public view of the
results of railway operations last
year, so far as earnings are con-
cerned.
Receipts from freight, passenger,
express and other transportation
during the year amounted to ap-
proximately $4,S73, 200, 900 or $780,
600, 900 more than in the previous
year. Operating expenses jumped to
about $3,971, 100000, or about ST.
119,000,000 more than in the pre-
ceding year.
DROP IN DECEMBER.
Preliminary reports to the Rail-
road Administration indicate that
freight traffic fell off in December,
with the virtual stopping of great
food shipments destined for Europe
and the cessation of the hauling of
other war material, 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 $25,OO0,O0O or $30,OO0,000,
officials believe. This may be COM
pared to income of $59,204,000 in
December of 1917, when blizzards
and curtailment of traffic sent earn
iYgs to what was then considered
very low record. {
The outstanding features of the
railway earnings situation last year
were that freight and passenger
rates were increased to yield about
$900, 100000 annually, or $780,
100000 in the six months during
which they were effective, while
wage advances added $636,000, 900
to operating expenses. These are
the latest estimates of railroad ad
accountants, but are not
considered final. Wages particularly
may prove to amount to more than
is now believed.
PAY At PER CENT HIGHER.
The Railroad Administration ac-
countants now report that in 1918
the $1,71O,000,000 pay roll of the
year pISFlouo Wup I'LL Cdoou o. Pei
cent and that consequently $2,346,-
100000 was paid out last year to
the 100000 railway employees.
Many wage increases wero effective
for only the latter part of the year,
and if these run thru the present
year, even without other additions
which may come from action on
pending applications for more pay,
hey would make $7S4,000, 900 ad-
iitional wages The wage level at
he end of 1918 was little more
han 45 per cent higher than at the
of the year, when the gov
assumed control.
Prospects for Improvement of the
situation this year depend
mainly on whether business con-
inues active, and gives a large vol {
lme of freight traffic to the railroads.
point to reduction of
raffic and consequently to reduced
arnings, according to the Railroad
Administration.
Director General Hines has stated
hat no consideration was being CIV s
n to any rate increase, but he be- r
ieves no general reductions can be
made this year.
DEFICIT is $196,000, 900. v
These facts bear only an indirect ?
elation to the governments deficit,
stimated at 100000. This v
epresents the difference between the d
ct income received by the railroads t
nd the aggregate, calculated at a \
tile less than $500, 0,00O, 200, which Il
he government guarantees the rail-
pads for the year. f
Neither does this take into consid- e
ration the expenditures of about "
SIS, 100000 last year for capital "
make permanent inn
rovements and buy cars and loco
otives. Il