The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-01-29
Railroad E Earnings
Considerable Decline Shown by
Figure Traffic Falls Off
While Operating Expenses
Can Not Be Greatly
Reduced.

Washington, Jan 23-Railroads in
1918 under government control ana
unusual war conditions earned about
Sis. coo, ,9C0. OF $3.50, 100000 less than
in .7911, $370 900, 600 less than in the
record saar of 1876 and about the
same as in 1915.
This became apparent today OF the
basis OF definite reports to the inter-
state commerce commission on earn
ing Of 1853 principal railroads.
those having annual operating reve-
nues Of more than S1,000,000 for IL
months and unofficial calculation OF
December earning which railroad ad-
rlinistration reports indicate will be
preceding month Although subject
to Slight revision the figures afforded
the first public view Of the results OF
railroad operation last year so far as
earnings are concerned.
Receipts from freight. passenger.
express and other transportation dur
ling the year amounted to approx
mately s4,S73 900, 600 Or SS32, 100000
more. than in the previous year. Cp-
Grating expenses jumped to about
SO, 81 900, 600 or about $1,119. 600. 600
more than in the preceding year,
Preliminary reports 10 the railroad
administration indicate that freight
| traffic fell off in December, with the
virtual Stopping Of great food ship
meats for Europe and the cessation
of the hauling of other war mater
ials. while expenses could not be
greatly reduced This condition sent
/ the net earnings, or railway operating
incolne, which has been declining
steadily Since the record month OF
last .Jaly TO probably s25,oOo,0Oo Or
/ $50. Co., 900, officials believe. This
may be compared to income of $33,-
204 600 in December Of 1917, when
| earnings went 20 what was then con-
sidered a very low record.
The outstanding features of the
railway earnings situation last year
were that freight and passenger rates
were increased to yield about $500
900 600 annually or s450,oe0, 600 in
the six months during which they
We're effective while wage advances
added $685., 600, 900 to operating eX-
penses. These are the latest estl-
mates of railroad administration &C
counts but are not considered final.
The railroad administration &C
countants now report that in 1918 the
S1,710. 600. 600 payroll Of the year
previous was increased 81 per cent,
land that consequently $2.34G.Goo 600
was paid out last year to the 100000
| n
crcases were effective fer only the lat
ter part Il the year, and If these run
through the present year. even With
out other additions which may come
from action on pending applications
for more pay. thcy would maze $7S4,
! 100000 additional wages. The wage
level at the end Of 1918 was little
Tno.e than A. per cent. higher than at
the hcs.nn;n% OF the year when the
government assumed control.
Prospects Tor improvement Of the
earaings situation this year depend
mainly on whether business during
the readjust,nent period continues
active and gives Il large volume Of
freight traffic to the roads. Indica-
tons point to a reduction Of traffic,
/ and consequently to reduced earnings,
according to the railroad administra-
ton
The facts bear only an indirect re-
lation to the governments deficit esti-
mated at $4,000, ,000. This repre-
sents the difference between the. net
income received by the railroads and
! the aggregate calculated ct a little
less than 5000, 100000 which the gov
ernment guarantees the roads for the
year.
Neither does this take into consid-
Grafton the expenditures of about
$5SS, 5000 last year for capital pur-
| poses-to make permanent improve
ments and buy cars and locomotives