The evening Caledonian. [volume] (St. Johnsbury, Vt.) 1918-1920, 1919-05-10
RAIL LOSSES MEAN
ROADS RETURN TO
PRIVATE OWNERS
Financial Deficit Sounds
Doom of Government
Operation
REVENUE FALLING OFF
Increasing Deficit Makes Further
Government Control of Roads
Disastrous

NONCl9AilSHI OpCINtlOll VI lelllO
has been a colossal failure according
to railroad experts who have exam
ined the financial report made recent
ly by Walker d. Hines, director gen.
eral. With its publication agitation
for government ownership has been
practically abandoned.
With operating expenses increasing
and revenue falling off, the Railroad
Administration faces a deficit esti-
mated at approximately billion dol
lars and is confronted with further
intimations of demands for increased
wages. The railroad administration,
the director general made plain today
is completely at sea as to what course
to take. 1t is undecided whether to
ask increased rates or request Con-
gress to make good deficit. Either
alternative offers emb&rrassments,
from political as well as business
viewpoint.
Government operation of tele-
graphs and telephones also has result
ed in increased charges to the public
estimated at approximately $4,000
900 to $50,000,000 Therefore, che
government experiment in this line
has failed
Publication of the report of the
director general on the financial en-
barrassment of railroads was precipi-
tated by a previous report made by
the Interstate Commerce Commits
sion, which showed the losses inculr-
ed during @he first three months Of
1919. 1t is well understood in
Washington that the Interstate Com
merce Commission has not looked on
the administration of railroads as a
success, and the report is regarded as
a definite effort to call attention to
what is going or.
The first result of Hines report.
was to create a sensation among
members of Congress who will have
to deal with railroad legislation.
Many described the situation as "dis-
astrous." The conclusion reached is
that effcrt to prolong government op-
Grafton of railroads will be abandon
ed.
Mr.. Hines has declared against it
as government policy, while Pres
ident Wilson has indicated similar
conclusion by ordering the return
of the telegraph and telephone sys-
TENS to private ownership
The general conclusion that Wash
ington authorities on railroad legis-
lation have reached is that the. pub
lication of Mr.. Hines report makes
it absolutely certain that the roads
will be returned to private ownership.
In view of the deficit of nearly a
billion dollars promised for the oper-
alton of the roads in 1919, attention
is called to the increases in rates dur
ing the last five years. In the terri
tory of Eastern classification rates
have been raised approximately so
per cent. This applies to passenger
and freight tariffs. Previous to the
horizontal increase of 25 per cent
made by Mr.. McAdoo, the Interstate
Commerce Commission has allowed
several increases in rates, amounting
to practically 25 per cent. This means
that on the basis of $5,000,00O,OOO as
the tota! revenue of al! the roads,
and allowing 100000, or half,
for the Eastern territory, tie public
in this section is paying $1,25O,O0O,-
600 more than it did five years ago in
tolls and railroads. While the in
crease has not been SO marked in the
Western section it is safe to assume
that the higher cost of transportation
to the public for the entire country
is $2,00O,000,0OO, which, with the
threatened deficit of $1,000
100000 for 1919, makes the total in
crease in transportation charges to
the public close to $3,0O0,000,0O0.
This, members of Congress say,
will go far toward explaining the cost
of living.