Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-02
lnx Morning Jonrnnl speciaI Leaeed MIrel

Washington, Jan. THE govern
ment's loss in operating the railroads
in 1918 is calculated by railroad ad-
minstratinn officials at less than
st5O.000. 000. This represents the
difference betwenl the amount the
government will be compelled to pay
railroad companies as rental fer the
use of their properties the SC-"atled
guaranteed return md the net in
come which til & t'" event will re-
ceive from tho ~ roads.
II will take six months more of re-
ceipts from the increased freight
rates to permit the government to re
coup its losses, officials believe If
congress does not approve the pro-
posed five year extension of federal
control and as a consequence Presi-
dent Wilson carries out his am
enounced intention of returning the
roads to private management at an
early date. the governments loss
will not be made up,
This deficit does not include the
big sums-hetweeu $3.50, 100000 and
5000 ,OO0. .000-which have been loan
cd to railroads to help them pay for
the extensive program Or improve
ments and purchase of new cars and
locomotives. These loans will be re-
paid eventually.
Figures Not Exact.
The governments loss cann6t he
stated exactly until the compensa-
ton Of each road is finally determin-
ed and until the interstate commerce
commission complies figures on earn
ings and expenses for November and
~. how
ever. that the aggregate government
compensation for all roads will be
about $3.50 100000, and that the net
income from railroad operations ere
dited to the government will be a lit
tie more than $S00.000.000. For the
ten months up to November |, the
governments net income from the
railroads, as reported by the inter
state commerce commission, was
S60i 900 900
Operating revenues for the entire
year, Officials calculate, probably
amounted to $4,000, 100000, more
than ever before i'm railroad history.
and operating expenses probably ran
up to $4,000, 1000. 900. This left a bill
lion dollars Of net revenue, which
was cut down more than 100000, 600
ry deductions for ordinary taxes,
rentals for equipment not owned by
railroad companies and other Incl
entail losses.
War taxes and expenses of main
tanning financial and other corporate
offices. including salaries of officers
not actually employed in physically
operating the railways, must be paid
by the railroad companies out Of the
s950,000,000 which the government
guarantees them.
All Records Broken
For the railroads 1918 was a year
which broke all records Of revenues
and expenses. Although receipts
were nearly 20 per cent greater ex-
penses were even more. 1t took
eighty per cent of the operating rev.
enues to pay operating expenses al
though only seventy per cent was
taken for this purpose in 1917. Oper-
ating expenses, which with estimated
figures for the past two months
amounted to S3,S00, 600, 900, we're a
billion dollars more than IN 1917. In-
creased wages are estimated variously
to have been responsible for between
$500, 100000 and $S00,000,OO0 of this
billion.
In the ten months ending Novem-
ber I, for which the interstate com
lnerce commissionn has compiled de-
finite reports, receipts from freight
and passenger and other revenue
sources were s4.SS2.000, 600, or a lit
tie less than the s4,041. 100000 reve'
nues for the entire wear of 1917. Ir
the ten months s2sfs 900, 900 came
from freight and 1856 ,000,0 600 from
passenger traffic.
Operating EXPENSES for the ter
- txra lie ,t,a antantnh 20 20 ~ mn. .hfl0