The Birmingham age-herald., 1919-01-02
GOVERNMENT LOST S150,0O0,0O0 IN
 ROAD OPERATION
Will Take Six Months More of Receipts From Increased Freight Rates for Govern
 ment to Recoup Losses
By Associated Press


 Wnshington. January 1.-The governments loss In operating the railroads in 1918 Is calculated by railroad administration officials nt less than EISO,O00,0OO. This rep
 resents the difference between the aggregate amount the government Will he compelled to pay railroad companies as rental for the use of their prOperty-the s0-calIrd guaranteed return--and the net in- come >xhiyh the government will receive from the railroads. It will take six months more of re- lceipts from the increased freight rates to permit the government to recoup it's losses, officials believe If Congress does not approvethe proposed five year extension of federal control, and i as A consequence President Wilson car ries out his announced intention of re- turning the roads to previous manage
 ment at an early date, the govern
 ments loss will not be made up. DOES NOT INCLUDE LOANS This deficit does not include the big
 sum-between S150,000.000 and $200, 0oo. which have been loaned to the railroads to help them pay for the ex- tensive program of improvements and purchase of new cars and 1ocomo tlves. ! These loans will be paid eventually.
 The governments loss cannot be stat ed exactly until the compensation of each road is finally determined, and until the Interstate Commerce commis- sion complies figures on earnings and expenses for November and Decem- Der.
 Officials believe, however that the aggregate government compensation for all roads will be about $950. 900. 900 and that the net. income from railroad operations. credited to the government, will be little more than $500, 100000. For the 10 months up to November |, the governments net income from ths railroads. as reported by the Inter- state Commerce commission. was s605,- 900, 900.
 GREATEST OPERATING INCOME Operating revenues for the entlre year, officials calculate, probably amounted to $4.S00, ,000, ,000 more than ever before in railroad history. and op- erating expenses probably ran up to i $3.800. 100000. This left billion dol lars of net revenue, which was cut down more than 00.00o,000 by de- ducting for ordinary taxes rentals for equipment not owned by railroad com panies and other incidental losses. War taxes and expenses of maintain l ing financial and other corporate of- fees. including salaries of officers not actually employed in physically operat- , ing the railways. must be paid by the railroad companies out of the $950, ,000. .000 | which the government guarantees them. l For the railroads, 1918 was a year which broke all records of revenues and expenses. Although receipts were near 1 ly 20 per cent greater, expenses were even more. It took 30 per cent of the operating revenues to pay operating ex- ; penses, although only 70 per cent was talk en for this purpose in 1917. Operating ex- penses, which with estimated figures for | the past two months amounted to y3,- 800, ,O00, 900, were 1.000, 0,00O more than in l 1917. Increased wages are estimated va- riously to have been responsible for be- 1 tween s60O O,000Oo0 and $SO0, ,00o,0O0 of this ! billion.
 1918 RECEIPTS
 i In the 10 months ending November l, | for which the interstate commerce com mission has compiled definite figures, ] receipts from freight, passenger and oth- CT revenue sources were s4,0S2, ,000,O 900, or a i little less than the s4.041 100000 revenues | for the entire year of 1917. In the 10 1 months, $2,S18, 8,000,000 came from freight and $S56, 0O0,C00 from passenger traffic. ! Operating expenses for the 10 months
 amounted to $3247. .00O. GOO. about s400, 900, :
 ooo more than the s2,s52, 66OO00 expenses 1 for the entire year. of 1917 So-caiicd
 transportation expenses. including the bulk of the cost of running the. trains
 amounted to $1,sgS, ,O00, 900: maintenance of
 cars and locomotives cost s8s7, 900, 900 and l maintenance of tracks, roadway and
 structures cost $52l 100000.
 l Most of these figures probably will be raised 20 per cent by returns for the 1 last two months.
 ! The Exports do not include small roads with Iess than $1, 100000 revenue year. 1 Eastern roads in the 10 months reported 1 $i 1928, ,bOo. GOO revenues and sl55l.00o,0 900 ex- l penses; western roads. sl .34S.O00.O0o reve- i nues and ss90, GOO eco expenses, and south ern roads s6i2 ,o0o, GOO revenues and t4s3.-
 caH GOO expenses.