Evening journal., 1919-03-22
SATURDAY, MARCH %, 1919.
ADvANCE OF RATES NEEDED!


n MOTHER advance of railway rates will be necessary
"A in HE opinion Of the Railway Age, whether govern
men operation is continued the railways returned
to private operation 10 points out IN editorial i'm its
issue that in the three months following the sign
ing OF the armisllceihat is November December and
Ianuary-the railways failed by approximately SiiOO0oOO
enough net operating income to pay the standard
return guaranteed by the government to the companies
"The net operating income earned in these three
months" says the Railway Age "was si0iQOO0OO while
the operating income earned in the three
months Of the fiscal years 1915 1916, and i9l7ihe years
whose operating income the guaranteed standard
returns 20 the companies based-Nas over S25O00OO
The statistics for January are relatively the worst OF
IN The total earnings made by railways under govern
ment control si00s260OO more than in january,
1918 The freight business moved ten per cent more
than In The terrible january Of 1918 The weather con-
dions were as favorable 10 economy OF operation
ever known winter Nevertheless, the increase III The
operating expenses Of these roads January 1918,
although only small amount Of retroactive advances I'm
included, S5S2000O0 with The result that
the net operating income made only si90000OO The
average operating income earned In January In the
three years on which the returns guaranteed TO the
panies are based was S5533i00O Thus, in the first
month Of the year the Railroad Administration shows
deficit Of over s36OOOOOO
not reasonable 90 that either the
freight movement viii remain small IL is now, or
that operating expenses Will remain relatively high
as they Business viii surely begin soon 20.
show signs Of recovery from The slump which followed
the signing Of the armstce. The operating officers,
from Director OF Operation Tyler down, are making the
most energetic Efforts % control and reduce expenses
But under the present system of government operation
there certain big special obstacles TO the reduction
Of expenses which extremely difficult 10 overcome.
Besides, the train service employees are stl to be given
large advance Of wages, and the expenditures for
nantenance must be increased. If the properties are 10
be kept in even as good condition as at present
Undoubtedly II The railways We're returned to pri-
vate operation they would be economically operated
than they be Under the present SYSTEM the Railway
Age asserts. But it is impossible TO believe in view Of
the statistics earnings and expenses for months
that with existing wages Of labor, prices Of fuel and
materials and passenger and freight rates they DE
operated under government control 20 avoid another
large deficit under private control to enable them TO
enough pay their interest and reasonable dy
dends
The public must pay in taxes the entire deficit in
CURED in operating the railways But there ought not
TO be any deficit incurred Those who transporta-
ton should pay the entire cost incurred in render
ing that service The taxpayers should be required
to pay any part Of it, The Railroad Administration the
Age asserts ought to advance the rates at enough
10 prevent any more deficit from being incurred With
the rates high enough to all railway costs ncud
ing the standard return to the companies they would be
high enough to enable the railways to be safely returned
10 private operation.
Public sentiment has crystaized in favor Of returning
the railways to private operation But this is to be
done without endangerng the entire financial fabric Of
'ie nation, the return must be made under conditions
Nhch VIII enable the companies to live. If the effect Of
~ e'urh OF the railways TO private operation is TO be
y .ease the prosperity OF the country the return
~ msoe under conditions which will enable the
besn % prosper Perhaps after the railways had
: higher M private operation for some time rates no
It VIII ,, Oe now IN effect would be sufficient But
10 resore onsa, after private operation is resumed
improvements in operating methods ,,,.s anu eneot lle
period II gsa,t practicable economy During mis-
rates TO enable them 70 prornsr Fil need higher
as much Is the government, now needs me- nse' almost
. siop Tho increase @; its oencis n N order TO
VIII no. cos' ne pnblic near much e r,,o-.
the railways to Private operation as 81 ,,oo,d 'u'h
finue government oper1tion; but II win COS, soron
VIII the public Willingly The price necessary ia e
store private operation will it refuse to pay n ana
tbereby in effect force itself to pay the much higher price
Thai u VIII have 10 pay if it continues government opera