Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-24
Operating Expenses Under the
Government Increased More
Than Billion One Hundred
Million Dollars,
WALKER D. HINES SAYS
RATES WILL NOT RISE
Outlook for 1919 Business Not
Encouraging, So Far as
More Freight Is Concerned,
Is Expert Opinion.
lev MORNING JOURNAL s-ec,Ar LEASED WIRE,


Washington, Jan. 23.-Railroad DIS
IN 1918, under government control
and unusual war conditions, earned
about 100000, or $250,0O0, 900
less than in 1917, 1870, 900, 600 less
than in the record year of 1916. and
about the same as in 1915.
This became apparent today on the
basis of definite reports to the Inter
state Commerce commission of earn
ingS of 1875 principal ailroads---those
having annual operating revenues of
more than $1,000. 000-for eleven
months and unofficial calculation of
December earnings which railroad
administration reports indicate will
be considerably smalled than those of
the preceding months.
Although subject to slight revision,
the figures afforded the first public
view of the results of railway opera
tons last year, so far as earnings are
concerned.
What Earnings Show
Earnings from freight. passenger,
express and other transportation dur
ing the year amounted TO approx
mately $4,S73, 600, 600, or about $S32,-
100000 more than in the previous
year. Operating expenses jumped to
about 1921, 100000, or about 81
119,000,000 more than in the preced-
ing year.
Preliminary reports to the railroad
administration indicate that freight
traffic fell off in December, with the
virtual stopping of great food ship
ments destined for Europe and the
cessation of the hauling of other war
material, while expenses could not he
reduced materially This condition
sent the net earnings, or railway OPP
Grating income, which has been de-
clining steadily since the record
month of last July to probably S25,-
100000 or $30000,000, officials he
lieve. This may be compared to in
come of $50, 204,0 900 in December,
1917, when blizzards and curtailment
of traffic sent earnings to what was
then considered a very low record,
Earnings Situation.
The outstanding features of the
railway earnings situation last year
were that freight and passenger rates
We're increased to yield about 5000
000,O 600 annually, or about $3.50, 600
600 in the six months during which
they were effective, while wage adj
vances added $635, 100000 to operat-
lHS tNlbtilStS- / ltSt are tue ltlpSl tS-
Inmates of railroad administration ac-
countants, but are not considered
final. Wages particularly may prove
to amount to more than is now he
lieved.
The railroad administration ac-
countants now report that in 1918
the $1,7l0, 100000 pay roll of the
year previous was increased 81 per
cent and mat consequently $2,34G,-
100000 was 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 additions which
may come from action on pending
applications for more pay, they would
make 1884 100000 additional wages,
The wage level at the end of 1918
was little more than 40 per cent
higher than at the beginning of the
year. when the government assumed
control.
Prospects for improvement of tt"
earnings situation this year depend
mainly on whether business during
the readjustment period continues
active, and gives a large volume OF
freight traffic to the railroads. 1ndi-
cations point to a reduction of traf-
fic, and consequently to reduced
earnings. according to the railroad
Director General
Hines has stated that no considera
ton was being given to any rate in
crease, but he believes no general re-
auctions can be made this year. T