Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1919-01-24
R. R, EARNINGS
UNDER j. S.FE[L
OFF $40 MILLION
Rate Increases Offset by
Greater Rise in Wages
of 81 Per Cent.
GENERAL DROP DUE To
OPERATING COST JUMP

Washington, Jan. o3-Railroads in
1918, under government control and
unusual war conditions. earned about
S71S,0O0,0O0 or S2500O0,000 less than
in 1917, $37O,OOO,0OO 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 earnings
of 195 principal railroads-thoSe having
annual operating revenues Of more than
ST 600 ,WO-for eleven months and un-
official calculation of December earn
ings. which railroad administration re-
ports indicate will be considerably
smaller than those OF the preceding
months. Altho subject to slight revision,
the figures afforded the first public view
Of the results Of railway operations last
year, so far as earnings are concerned.
Income Was s8s2, 100000 Ahead.
Reports from freight passenger, OK
rress and other transportation during
the year amounted to Approximately
$4,S73 100000 or $50. 600 more
than in the previous year. Operating
expenses jumped to about $391l ,Wbn,oOo,
or about S1,1190o0.0O0 more than In
IHP preceding SedI
Preliminary reports t0 the railroad ad-
miristration indicate that freight traffic
fell off in December, with the virtual
stopping of great food shipments
destined for Europe and the cessation
Iii the hauling Of other material While
expenses could not be reduced rnat"rl-
ally. This condition sent the net earn
ings, or railway operating income, which
has been declining steadily since the
record month Of last .Tuv. f. probably
ST. 100000 Or 100000 600, officials be-
iieve. This may be compared to income
of 59,204 900 in December of 1917,
when billiards and curtailment Of traf-
fic sent earnings to what was then
considered very low record.
Wages a. r. c. Higher Now
The outstanding feature Of the rail
way earnings situation, last year, were
that freight and passenger rates were
increased to yield about S9Go,OuoWo
annually. Or S450,oo0,0G0 il the sIz
months during which they were offec
five. while wage advances added $500
10000 to operating expenses. These
gre the latest estimates Of railroad ad-
mjnistration accountants, but are not
considered final Wages. particularly.
may prove to amount u more than Is
now believed
The railroad administration account
ants now report that in 1918 the
S1.71O,0O0,O0O payroll Of the year pre-
yiously was increased IT per cent and
that, consequently, s2,346.0 100000 wa
paid out, last year, to the 100000 rail
way employees. Many wage increases
we're effective for only the latter part of
the year. and if these run thru the
present winter, even without other aldi-
tions which may come from action ~
pending applications for more pay. they
would make $7S40O0,N00 additional
wages. The wage level at the end Of
1918 was a little more than - per cent
higher than ut the rsinnng If the year.
when the government assumed control.
Prospects Are Guess.
Prospects for Improvement Of the
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 Indications point
to "A reduction of traffic. and, consc-
guently. to reduced earnings, according to
the railroad administration