The Greeneville daily sun. (Greeneville, Tenn.) 1918-1920, 1919-05-10
THE RAILROAD DEFICIT.


The country is facing the necessity for very subtan-
tal advance in freight rates. and possibly in
rates. if the retains control and operation of
the railroads This is evident from the frank statement
submitted by Director General Hines showing that in the
fifteen months during which the government has had con-
troll of the carriers it has lost $41800000O During the
first three months of 1919 the deficit has been 1892 0O
OOO which is the rate of $64OOOOOO MONTH more
than 100000 a day.
It is obvious that the government cannot stand such
heavy loss for long perod-a loss which would total
$76sOO0OOO for the year if the present rate sus
tanned But Mr. Hines points out that January February
and March are the months of the year for the trans
portaton business in normal times, and that they
were particularly bad this year because of the existing in
dusal situation Also he emphasizes the neasticity of
the railroad business by which it impossible to reduce
expenses proportionaely with reduction in revenues,
but this is fact which will work to the benefit of the rail
roads when the increase, corresponding in
crease of expenses will then be necessary Mr. Hines
without committing himself to definite prediction, says
there every to expect very great Improvement
in business later in the year. and for that he does
not favor increasing rates at this time but prefers to
wait until there is a approach to normal conditions
Mr. Hines justified in hisantcpation that the show
ing for the first quarter will be the worst for the year
1t is weestablshed fact in the transportation business
that this the low period for every calendar year. Be-
Sides there is charged the expenses of the quarter &c.
100000 of back pay awarded the employers and included
in the statement figures dealing with the inland water
ways whCih the railroad administration has ursdic
ton which augment the total deficit Also it is quite APP
parent that the gradual and continued Improvement in
dustry together with the fall movement of the crops will
add greatly to the earnings of the railroads during the
mainder of the year. paragraph from Mr. Hines state
ment says:
To large extent the unfavorable results for Jan
uary, February and March are due to the fact that
business has fallen off and that expenses could not be
corespondinly readjusted, that the loss largely
arises in connection with the period of readustment
through which the country is passing.
In these few words Mr. Hines has presented the strong
est possible argument why the railroad administration
should cooperate readily in the effort being made to
stabilize the prices of basic commodities and get industry
started at full speed ahead If the loss largely arises
in connection with the period of adjustment through which
the country passing" what better service he and
his colleagues render the railroads. the government and
the country at large than to throw the weight of their
influence toward Fastening that readusmen and getting
business going at normal speed? Why should they bag
gle prices when they have it within their power to
contribute nightly to movement which will yield big
returns to the properties under their and relieve the
Treasury of millions of expense?
With another rate increase facing the country, even
though deferred for the present and with the government
committed to making good the tremendous deficits, Con-
gress must promptly address itself to solution of the
railroad problem fixed policy should be adopted at
once with view to doing full justice to the transporta
ton lines and to relieving the government of the great
financial responsibility which it assumed