Pine Bluff daily graphic., 1919-01-02
RAILROAD DEFICIT HUNDRED AND FIFTY
 MILLION DOLLARS
To Government According to Rail. road Administration Officials: Six Months Mere to RccOup Losses.

Washington, Jan. 1.-The govern ment's loss in operating the rail roads in 1918 is calculated by rail road administration officials at less than $15O GOO, ,000 This rapresentr the difference between the aggregate amount the government will be com. pelled to pay railroad companies as rental for the use of their properties --the so-calfed guaranteed return and the net income which the gov ernment will receive from the rail- roads
 It will take six months more Oi receipts from the increased freight rates to permit the government tc recoup it's losses. officials believe If congress does not approve thu proposed five year extension of fed eral control. and as consequence President Wilson carries out his an nounCed intentiCn of returning the roads to private management at an early date. the governments loss will net be made up.
 The dificit does not include the big sums-Bstween S150,000,000 and $200, ,000 ,000-which have been loan ed to the railroads to help them pay for the extensive program of i'm provements and purchase of new cars and locomotives. These loans will be repaid eventually.
 The government loss cannot be stated exactly until the compensa- ticn of each road is finally determin- ed, and until the interstate com. merce complies figures on earnings e., ha, no- cember. Officials Relieve however that the aggregate government com pensaticn for all roads will be abou' $950,G00,000 and that the net income from railroad operations credited tC the government will be little more than $S00.000,000. For the ter months up to November 1st, the gov ernment's net income from the rail roads, as reported by the interstate commerce commission. was $605, OO0,000.
 Operation revenues for the entire year, officials calculate. probably amounted to $4,S00. 000,000, moro than ever before in railroad history and operating expenses prsbably ran up to $3,S00.00o. .000. This left [ billion dollars of net revenue, whicl was cut down more than $2Q0,- OOoO by deductions for ordinar, taxes. rentals fer equipment no owned by railroad companies ant other incidental losses.
 War taxes and expenses of main tai.1ing fine sncial and ether corporate offices, including salaries of officers not actually employed in physicall. operating the railways, must he pait hy the railroad companies but ol the s950,0O0 900 which the govern ment guarantees them.
 For the railroads. 1918, was veal which broke all records of revenu' and expenses. Although receipts were nearly 20 per cent greater, eX penses were even more. 1t took S' per cent of the operating revenue u pay oprating expenses, although on ly 70 per cent wac talyel for thi purpose in 1917. Operating expens es which were estimated figures 10 the last two months, amounted t $3,S00, 100000. were billion dollars more than in 1917. Increased wage are estimated variously to have beer responsible for between $60000o, 900 and $500 100000 of th;s billion
 In the ton months ending Novem her 1, for which the interstate com merce commission has compiled def mite repcrts. receipts from freish and passenger and other rsvenu sources.
 Passenger and other revenue sour ces were s4,O32. 2.ooo,oOo, or littl less than the $4.o41 ,0o0 ,00o revenue for the entire year of 1917. In tn, ten months S2.S1S000,0 ,000 came iron freight and $S56 000,000 from passen ger traffic.
 Operating expenses for the tel months amounted to $S,247, ,0a0, ,000 or about $i00.000,000 more than tn $2,S52. 100000 expenses for the entir, year of 1917. So called transporta tion expenses. including the bulk 0 the cost of running trains. amounte, to 1.6e6 000.000; maintenance 0 cars and locomotives cost $S97, 900, 000; and the maintainance of tracks roadway and structures cost S521, O00NO0.
 Most of these figures probabl will be raised 20 per cent by return for the last two months.
 The reports do not include road with less than s1.000,000 revenues year.
 Eastern roads in the ten month reported s1.S2S.000.000 revenues an $1,551 000,000 expenses: Westerl reads s1,349 100000 revenues. an $S9C.000,000 expenses, and Souther, roads $642,000.000 revenues. an $493, ,000 900 expenses.
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