Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-05-07
RAILROADS DEFICIT
NOW S192,000,0O0
Operations of First Quarter
Show Large Loss to
Government.
FREIGHT TRAFFIC SMALLER
Hines Would Not Use Present
Abnormal Conditions as Basis
for Changing Rates.

Wv Associated PrcsS.1
WASHINGTON, May 6-Director-
General Hines. in discussion of re-
cent railroad earnings tonight. dis
closed that:
ing the railroads for the first three
months this year. or the difference be-
tween net earnings and one-fourth OF
was about s1e2.oo0.ooo for ali roads
under Federal management
The Eoyernment's loss for 1918 was
red IN fifteen months 0. F'ederal opera
ton was s4lS,ooo,ooo.
Marked reduction Of freight traffic
under records OF similar periods Of
for for the the bad iinsnciai @ T showihs. sIpenssGid and
reported tc!: show no promise of
improvement
No Rnte Changes Now.
Despite the big government deficits.
the directo--getncral does not CON
template any general increase in the
level OF rates. but prefers TO await
restoration of normal business con-
: The sovernmen! also incurred de-
tiei, o. abou, sl45oo,o9o in eight
spress hs ,he ton
Marsh i. isi. corporations UP 10
naturally lead to agitation Of the ques-
tion whether there ought 10 be an in
crease OF rates" said Mr.. Hines in his
statement MY own judgment is that
normal TO serve as basis for any gem
era change in the level OF rates and
IN tina, ~, i, is preferable to defer action
been a fuller opportunity TO get a
more reliable and possibly a more
norma measure OF the conditions.
able economy. studying the situation
win the greatest care. and keeping
the public fully informed as to de,
Explain. Difference.
The deticit OF s1o2,ooo,ooo incurred
by the government in January, Feoru-
greatly exceeded the estimate made
public earlier in the day by the bureau
Of railroad economies because Sir.
pensation for the three months as
ree-twelfths OF the annual compensa-
ton.
culated each months share on the basis
o. the average for that month III. he
tkree pre- war years. The -ailroao at-
ministration figure also included small
roads. not included in the so-caiIed
class cnr which are under government
control, and also expenses OF the con-
tfai administration and coss OF operat-
ing inland waterways.
MFR. Hines explained THAI his system
OF calculating tended to show the rail-
at disadvantage for the first three
months. but added:
Stili it seems preferable to charge
each OF these months rather than to
run the risk cf an impression arising
that there is any disposition to UNDER
state the actual results.
Dusincss Hus Fallen on.
TO large extent the unfavorable
results for January. February and
has fallen off and that expenses could
not be correspondingiy readjusted so
that the loss largely arises in connec-
ton with the, period of readjustment
Industrial enterprises generally have
suffered embarrassment on account of
the fact that business has been cur
penses could be curtailed. The rail-
road business is probably in its nature
less Tess elastic than any other business
barra assment of readjustment.
The entire railroad organization
has been and Is working most earnestly
10 Iead'us these costs 70 meet the
the railroad business, whether under
private or public control, is such that
10 a very large extent it is impossible
spending reduction in costs. On the
other hand. when there shall be sub
stantial increase in business the reve-
in the net because the costs will not
be correspondinSly increased.
save maintenance Cost Later.
1T is believed that this improve
ment Will be consid erably emphasized
by reason of the fact that maintenance
work has been carried forward during
the favorable weather of January, Feb
ruary and March on a liberal basis.
despite unfarorable business, and this
should be reflected in saving in main
tenance costs later in the year.
I'm the midst of the present period
of postwar rcadjustment il is i'm
possible TO make any confident state
ment as to the results OF railroad
operations for the remainder of this
calendar year.
1T is my policy to give the public
the facts and. where the inference to
be drawn is doubtful, to resolve the
doubt in such way as to avoid the
risk of making a statement more fav-
orable than the ultimate facts will
justify"