Richmond planet. [volume] (Richmond, Va.) 1883-1938, 1919-12-13
RAILROAD PROFITS AND LOSSES,

Tho Now York Sun, In our opin-
ion one OF the ablesS edited journals
in this or any other country is con-
stantly taking the joy" out of life
for Tie heads Of the Departments OF
'ho Wilson Admins ration Director
Gen. Hines, VIII has been operating
he railroads OF this country at an
estimated loss Of a million dollars per
day according to the statist C ans an
nouncement recently, says that during
the mon h of Oct, tho railroads were
operated at profit Of two million
.oliars u the Government.
GLARS TO the Government.
now comes the New York Sun and
It proceeds to explain that DIRECTOR
-.cheral mines did not mc,ln what he
said, although he said il. This is
the diplomatic and interesting way
in which that master of the English
language and the present day diplom-
acy handles the situations:
When DircCtor-General Hines an
nounccs that the Government operated
the railroads in October at profit
o itself of SEINE 100000 he does
not mean, of course, that the Govern
mont made $4,000 more than the
October rental due tho owners OF the
railroads. As matter OF fact the rail
roads did not enrn tho October rent
al by millions of dollars.
The confusion arises from the fact
that while the standard rcturn-rhe
rentai--approximatcs some 5000, 900
900 in year, the standard return of
the differcnet months in the year
val!ies enormously. While 100000
ooo year is an apparent average OF
SIS 100000 n month, the standard re
turn OF the three year test period
based on the actual earning perform
way from $47,934 900 In February to
S94 1873. 900 in October. Just as tho
railroads had to earn only $56, $4,000
In January and $47,924 900 in Febr l.
airy to make the rentals they had to
carn sol ,a73.000 in September and
Ss4,333. zoe in October.
When the roads under Govern
meat operation earned only $1O,lNG.
s66 last February. the loss TO the
Government was not $65.000.O00--I
tho differences between $4,000, 900
and one-tvelfth of the annual 5000, |
300, 600 due the roads; the loss to the
Government was $37,S2S,000. Similar
" when tho roads earned only $40
342,60S in March the loss to tho Gov
ernment was not $64 100000; it was
S57. 100000 for the actual March rcu-
.nl was $6S,25l, 900 rs against the
February rental OF s47,934, 900.
In the very same way tho October
rental actually being s94 1888 900 and
The reported net earnings being SIT,
100000 the roads did not earn the
October rental by the difference be-
Lwcon the standard return for that
month and the reported net earn
ings. The actual October loss there
fore. was some $17,000,000.
TO earn the rental due in Novem-
Dor just closed tho railroads had to
earn $S3,53G,0O0. The figures are
not yet available; but If they earned
more than that they showed a profit
to the Government OH the operation
Of the month. II they earned one
penny less than that they showed a
loss. On tho other hand, in this
month OF December the standard re
turn is $73.2S2,0Q0 in this month,
the roads might earn less
than $76.000,000 and still if the earn
ings should be in excess OF $73,2S2,-
600 show the Government a profit on
operation.
Naturally liz the months when he
railroads always make big earnings
tho Government has made better
than in tn moths when
the railroads always make a very
poor showing. But if there has ever
been a month or week or a day in
this year of 1919 when the Govern
ment has operated the railroads at
an actual profit-bascd on the stand
ard return of the three-year test
period. and with all proper charges
made-it has yet to be discovered.
What answer can be given by the
head of tho United States Railroad
Administration to this argument?
When people read these staggering
f1guros and consider their full i'm
port where is the individual, who
would advocate government owner.
ship Of the railroads.?