Arizona republican., 1919-01-24
NJ RATE INCREASE 0R DECREASE THIS
 YEAR SAYS HINES
Railroad Earnings Hun dreds Of Millions Less
 Than Under Norma l
 Times-Traffic Falls Off

WASHINGTON, Jan. Zj.-RalirOadS in 1918, under government control and unusual war conditions, earned about $71S 900, ,000 or $250,000,000 less than in 1917, s370, 1000, 900 less than in the rec ord year of 1916, and about the same as in 1915.
 This became apparent today on the basis of definite reports to the inter state commerce commission of earn ings of 195 principal railroads-those having annual operating revenues of more than $1,000, ,000-for II months, and unofficial calculation of December earnings, which railroad administra tion reports indicate will be consider ably smaller than those of the preced- ing months. Although subject to slight revision. the figures afford the first public view of the results of rail- way operations last year, so far as earnings are concerned.
 Earnings from freight, passenger, express and other transportation dur ing the year. amounted to approXi- mately s4,S73, 900, 900, or sS32, 900. 900 more than in the previous year. Op erating expenses jumped to about $3,- 971, 000, 900, or about $1,119 900, 900 more than in the preceding year.
 Traffic Falling Off
 Preliminary reports to the railroad administration indicate that freight traffic fell off in December. with the virtual stopping of great food ship ments, destined for Europe, and the cessation of the hauling of other war material, while expenses could not be reduced materially. This condition ! erating income, which has been de- clining steadily since the record month of last July. to probably $25,000, 900 or s3O,O0O,0OO officials believe. This may be compared to income of $59,. 204 900 in December 1917, when bliz- zards and curtailment of traffic sent earnings to what was then considered a very low record. | The outstanding features of the railway earnings situation last year were that freight and passenger rates were increased to yield about $900,- 100000 annually, or $450. ,000 in the 1 six months during which they were | effective, while wage advances added 1 s635,000,000 to operating expenses ! These are the latest estimates of rail | road administration accountants, but are not considered final. Wages par ticularly may prove to amount to more than is now believed.
 Labor Increase 37 Per Cent
 The railroad administration account ants now report that in 1918 the $1,- 100000 payroll of the year previous was increased 37 per cent, and thai consequently $2,346,0O0,000 was paio out last year to the 1000 900 railway employees. Many wage increases were effective for only the latter part O the year, and if these run through tn, present year, even without other addi- tions, which may come from action or pending applications for more pay they would make $7S4,000,000 addi- tional wages. The level at the ent of 1918 was a little more than 45 pel cent higher than ar the beginning O the year, when the government as stunned control.
 Prospects for improvement of tn, earnings situation this year, depend | mainly on whether business during tn, readjustment period continues active and gives a large volume of freigh 1 traffic to the railroads. Indications point to a reduction of traffic, ant consequently to reduced earnings, ac cording to the railroad administration Director General Hines has stated tha no consideration was being given t any rate increase, but he believed n, general reduction can be made thi year.