The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-01-04
RAN ROADS AT
A GREAT Loss
The Railroad Administration
Officials Figure Big
Deficit.
BIG LOANS ARE NOT
INCLUDED IN STATEMENT
If Roads Are Returned Early to
Owners Loss VIII Not Be
Made Up.

Made Up.
Washington, Jan. 1.-The govern
-nent's loss in operating the railroads
in 1913 is calculated by railroad adj
ninistration officials at less than $780,
100000. This represents the differ
ence between the aggregate amount
the government will be compelled to
pay railroad companies as rental for
the use Of their properties-the So
called guaranteed return-and the net
income which the government Will re-.
ceive from the railroads.
It will take six months more Of re-
ceipts from the increased freight rates
to permit the government to recuper-
ate its losses, officials believe II con-
gress does not approve the proposed
five-year extension Of federal control,
and as consequence President Will
son carries out his announced inten-
ton OF returning the roads to private
management at an early date, the
governments loss will not be made
up.
This defict does not include the big
sums between $150,000,000 and
$500, 900, 00,00O-which have been loan
ed to railroads to help them pay for
the extensive program Of improve
ments and purchase Of new cas- and
locomotives. These loans Will be re-
paid eventually.
The governments loss cannot be
stated exactly until the compensation
| of each road is finally determined. and
unsil the Interstate Commerce Com
mission complies figures on earnings
and expenses for November and De-
cember Officials believe, however,
that the aggregate government COM
pensat:on for all roads will be about
$3.50, 100000 and that the net income
from railroad operations credited TO
the government will be a little more
than, $500, 100000 For the ten months
up to November the governments
net income from the railroads, as re-
ported by the Interstate Commerce
Commission, was s605, 100000.
Operating revenues for the entire
year! officials calculate, probably
amounted to $4,000. 100000, more than
ever. before in railroad history, and
operating expenses probably ran up to
$4,000, 100000. This left a billion dol
lars of net revenue, which was cut
down more than s200,000,000 by de-
Quoting for ordinary taxes, rentals for
equipment not owned by railroad
companies and other incidental loss
es.
War taxes and expenses Of main
tanning financial and other corporate
offices, including salaries Of officers
not actually employed in physically
by the railroad companies out Of the
( $s5,O00,000 which the goverrsnent
guarantees them.
| For the railroads 1918 was a year
which broke all records of revenues
and expenses Although receipts were
nearly 20 per cent. greater, expenses
were even more. It took 80 per cent
of the operating revenues to pay op-
Grating expenses, although only ~
| per cent was taken for this purpose
in 1917. Operating expenses, which,
with estimated figures for the past
two months amounted to $500, ,000,-
i 0G0, were a billion dollars more than
! in 1917. Increased wages are estl-
mated variously to have been respon-
sible for between s600,000,000 and
! $500, 100000 of this billion.
In the ten months ending November
l, for which the Interstate Commerce
! Commission has compiled definite re-
ports, receipts from freight, passeng-
er and other revenue sources were
! 81, ,032, 100000, or a little less than the
/ sI041, 100000 revenues for the en-
! tire year of 1917. In the ten months
s2,S1S, 100000 came from freight and
1856, 100000 from passenger traffic.
Operating expenses for the ten
! months amounted to 3,2S4.000, 900,
or about s400,00O.oOO more than the
| $2.S52, 100000 expenses for the en-
tire year of 1917 So-called transpor-
tation expenses, including the bulk OF
the cost of running the trains amount
ed to s1,666, 900. 900; maintenance OF
cars and locomotives cost sS97, 7,000,-
900 and maintenance of tracks, road
way and structures cost $521, 100000.
Most Of these figures probably will
be raised 90 per cent by returns for
the last two months.
The reports do not include small
roads, with less than s1,000,000 reve-
nue. a year.
Eastern roads in the ten months
reported s1.S2S, 100000 revenue and
1851, 600, 900 expenses; Western.
roads. s1,349 100000 revenues and
$89O,000. expenses, and Southern
roads. s642,O0o.00o revenvss and
93.O00,0O0 expenses.
NEW YORK'S GOVERNOR.