Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-01-27
GREAT ECONOMIES
IN !. S. RAILWAYS
Under Private Operation Loss
Would Have Been Exten-
5 sive, Says Report.
EXPENSES VASTLY INCREASED
Were Hedged About by Various
Restrictions Imposed by
States and Others.
EXPENSES VASTLY INCREASED

WASHINGTON, January oG-Hovy
vast economies in the Operations of
the nations railroads under Federal
control have been put into effect is
shown in a report made public TO-
day. The report deals with the work
during the last year Of the railroad
administrations division of law, head
cd by John Barton Payne. 1t is sup
Elementary to former Director Cen
eral McAdoo's report
The most striking feature of the
report is the flat declaration that un-
der private operation the railroads
would have sustained tremendous loss
in the first four months of 1915. The
fact that under government operation
approximately sl00.OOo.0OO loss was
sustained has been made the basis for
attack o:i government control Of the
roads. The report declares that under
private ownership the roads in this
same period would have lost at least
$l3G,000,000.
EXPENSES INCREASED
WITH GREAT RAPIDITY
The report says:
Last December t9l7) the expenses :;
OF the railroads were increasing with
great rapidlty. They were. hedged
about in their efforts to obtain in
creased rates by the numerous and
various restrictions imposed by the
states and also by the limitations i'm
posed b. the Interstate commerce act.
They were confronted by Imperative
demands for greatly increa sed facili-
ties, and were without machinery to in :
sure an amicable settlement OF those
demands. They were finding ii almost
impossible to borrow money on any
terms to make the improvements, which
were Indispensable 10 enable them 10
perform their public service.
The operation results for the first
four months Of 1913 indicate that il
the railroads had been under private
control during that period they would
have lost in operating income, as COM
pared with the corresponding period
of the preceding year. S136.ll6.533.
This takes no account of the wage
increase subsequently made, which.
nevertheless, was retroactive to Janu-
AIRY l.
CLAIMED SOME ROADS
WOULD HAVE FAILED
These adverse conditions. coupled
ing money, would probably have re-
suited in the failure of some of the
most important railroad conpaniea- IN
the country to meet their obligations
under private management. =
Concerning the position the railroads
are now in as result of government
control, the report adds:
Under Federal control the railroads
have the opportunity to contract with
the government for guaranteed in
come on Il just basis, which relieve es
them OF the 1OrmiuaDie sinNietieS Wnlc-l
confronted them in December OSLO.
and which would still be confronting
them under private control. They are
able TO borrow money from the gov
ernmeNt on reasonable terms for nee
essary Improvements. These are fun
damcntal things which impress the
great body of railroad investors, and
should make them satisfied with the
status as II now exists
HUGE AMOUNT GIVEN
TO AID THE ROADS
The report shows that up to No.
vember 80 last. the director general
had advanced to the railroads under
Federal control total of s3l5,690.o6o.
Recounting the savings made. II Is
shown that in the department of law
alone, by wedding out unnecessary
legal talent which the railroads were
forced to maintain while under pri-
vate ownership. n saving of s2,2l5.O0o
had been made in the first year
Other vast savings were made in
the way OF property protection and
the thorough and established system
of damage claims.