The sun., 1919-05-25
$1,2OO,OOO,OOO
ASKED BY HINES
FOR RAILROADS
Request Covers Estimated
Needs for 1918 and
Present Year.
DEFICITS ARE $486,184,94O
Request Brings Total for Lines
to 81, 700, ,OOO,O00-S1,-
21+,0OO,0O0 Is Loans.
DEFICITS ARE $486,184,94O
Special DespatcA to TIE sus.

l.
Hines, Director General Of Railroads,
sent to Congress to-day an estimate
calling for S1,o0O, 600, 900 to be used
In paying off deficits already in
Cured in sixteenth months of Gov
ernment operation of the railroads
and for expenditures for 1919, This
sum, IL granted, VIII bring the total
allotted for the Government opera
ton of the roads to 81, 1000, 600, of
which sum, Director General Hines
asserts, S1,214.OO0,000 eventually will
be returned to the Government or is
returnable.
The difference between $1,000
900 and s1,214, 100000 Is due, accord
ing to the letter of General
Hines, to deficits in. the operation Of
the roads in 1915 and the first four
months of 1919. These deficits, as
explained by the Director-General,
we're $236, 1874, ,040 for 1913 and $780,
100000 for the first four months of
the present calendar year. The
money, which Mr.. Hines expects to
be returned. ut present is tied up in
working capital Of the roads or has
been advanced to the account Of the
railroad corporations. ;.
Earlier in the year Mr.. Hines had
asked for an addition Of $3.50. 900
to the revolving funds for the Govern
ment operation of the roads and the
appropriation to-day is 5000. 900. 900
higher than recent estimates had
placed it.
Filibuster Delayed Request.
The request for $3.50 900. 900 was held
up by flibuster at the closing session
Of the last Congress, which explains
why Mr.. Hines now is asking for
funds
Representative Good (Ia), chair
man Of the House Committee on APP
propriations. said that hearings on the
request OF the Director-General would
begin on Tuesday and that a recon-
mendation by the committee was ex-
pected before the close of next week.
The needs for funds are shown in
Director General Illness letter, In
which ne also attempts to explain
away the deficits already incurred.
The letter follows:
Requirements for 1918:
The amount necessary to defray op-
Grating defcit-the difference between
the standard rental payable to the rail-
road companies and the net operating
income for the year 191S-$236.1s4.s $40.
For net excess OF current assets
over current liabilities partly available
for the immediate working capital re-
quirements. s2o1.s3s.1ss.
For Improvements on inland water
ways S2,64l.SS6.
Amounts advanced for account OF
railroad companies to enable them To
pay in part their current liabilities
500 600, 900
Amount OF additions and betterments
expenditures. including equipment made
70 the railroad companies properties
during 1918, which must be carried by
the Railroad Administration for the
Nme being, S352,503, 400.
Loans during 1918 to railroad com
panies not Immediately payable, $4S''
Total requirements for 1918. SEAL
S0243s.
Less amount heretofore appropriated
$500, ,000. 900
Balance required for 1918. $441.so2,
43s
Estimated requirements for 1918;
For amount of additions and better
ments expenditures. including equipment
made and to be made to the railroad
Properties during 1919, which II Is be
Neved will have to be carried by th'
railroad Administration for the time be
ing, s253.435.760.
For improvements to develop tnlane
waterways, $l7,700,000.
For financing the Boston and Main
Railroad Company reorganization. $50,
600. 900
For operating deficit for the first fou
months Of 1919. $3.50. 100000.
For additional working capital
I223,O6i.sO2
Total estimated requirements 70
1879. S75Sl97562
Grand total requirements for 1911
ana 1919, il,200.Oe0. 900
Explains Dencit for 1915.
THE operating deficit OF s236.1s4,e4
.T the year 1918 was due largely to tw'
iacts First. the winter OF 1918 was un
pFecedented In It's severity and In II
costly effect on railroad operations. ant
second, the increases In passenger ant
freight rates. averaging about 25 pc
cent were In effect for only a few day
W excess OF six months. while heavil
increased expenditures due 20 war con
Continued ON Seventh PGc~,