The Lubbock avalanche. (Lubbock, Tex.) 1909-1922, 1919-01-02
GOVERNMENT LOSES HEAVILY
IN RAILROAD OPERATIONS

! Washington. Jan. The govern.
ment's loss in operating the rail.
roads in 1913 Is calculated oy rail-.
road administration officials at les.
Than $4,000, 600. This represents
the difference between the amount
the government will be compelled TO
pay railroad companies rs rental for
the use OF their properties the 50
called guaranteed return---and the
net income which the government will
receive from the railroads
II viii take six months more Of re-
ceipts from the increased frelgh,
rates to permit the government to re-
coup its losses. officials believe. 1.
congress does not approve the pro
posed fi,e-year extension Of federal
control and rs . consequence Presi-
dent Wilson carries out his announc-
I'd intention Of returning the roads
10 private management az nm early
date. the governments loss will not
be made mp. 80 "i
This deficit does not include the
Bag sums between si50.oo0. 0o0 ami
5000. 600 0oo.-which have been loan.
ed to railroads to help them pay for
the extensive program 81 Improve
sents and purchase Of new cars and
locomotives. These loans will h. re
paid eventually.
The governments loss cannot be
stated exactly until the compenss-
ton Of eacn road is finally determln.
ed. and until the Interstate Com
merce Commission complies figures
on earnings, and expenses for !
ember and December. Officials be
lieve. however, that the aggregate
government compensation for al
roads will be about $3.50. GOO. 600 and
that the net income from railroad
operations credited TO the govern
nent viii be lit,le more than $780,
100000. For the ten months u
November /. he governments net
income from the railroads. as report
ed by the Interstate Commerce Com
mission. was s605, 900. 900.
Revenues Total $4,000. oO0. 900.
Operating revenues for the entire
year officials calculate. probably
amounted to $4,000, 900. 900 more
than ever before in railroad history,
and operating expenses probably ran
up to $1,000. 100000. This left
billion dollars Of net revenue. which
was cut down more than $500, 000.-
600 by deductions for ordinary tax
es, rentals for equipment not owned
by railroad companies and other in.
cidental losses. Ia
War taxes and expcnscs.6f main
tanning financial and other corporate
offices, including salaries If Officers
not actually employed u physically
operating the railways. must be paid
by the railroad companies out Of the
$3.50. 100000 which the government
guarantees them.
1918 Record Year,
For the railroads 1918 was a year
which broke all records Of revenues
and expenses. Although receipts
were nearly 20 per cent grcate-. ex-
penses weer even more. IYtook so
per cent Of the operating r,fenues to
pay operating expenses altiP hugh only
seventy per cent was taksnVor this
purpose In 1917.
Operating expenses. whiehNwith es-
timated figures for the psst Two
month"; amousted 10 s3.soo,o 900, 900,
were a billion dollars more than. in
1917.
Increased wages In the estimated
varloualy 10 have been responsible for
beiwecuNtsus ,soeQoo and tsoo'oeo,'
600 81 this billion,
In the three months ending Nov.
emher I, fof which the intsnials
Commerce Commission has complied
definite ropoF,n. RECEIPTS f'em freight
and passenger asa ethel revenue
sources vete si.nn'. Ohio .pop 10 n