Evening journal., 1919-03-01
VAST INCREASES OF EXPENSES NOT DUE TO AD-
VANCES IN WAGES

Sa the statistics OF the Interstate Commerce Com
"a mission and Of the Railroad Administration regard
ing the operating expenses Of the railways in 1918 be-
complete they grow startling" says the
Railway Age "The final summary OF the Interstate
Commerce Commission for the year 1913 which has re-
Gently out shows increase In operating expenses
Of Siii00OOO00 DirecorGenera Hines, in estifying
fore committee OF Congress last week. estimated that
the advances wages which actually had been charged
into the accounts for 1918 amounted 10 $5S355O 100000
The conclusion must be drawn that the increases in
penses 1918 attributable TO other than advances
in wages about s5G5OOOOOO In view Of the econo
mics which Mr. McAdoo anticipated would result from
unlncatlon, and which the advocates OF government
ownership predicted would result from government op
eraon 1t will probably astound the public to learn that
the OF expenses during the year would have
greatly exceeded half billion dollars without any adj
vance Of wages at all.
1T has beoh estimated that the advances in wages
made under government control have amounted 10 over
sSOOOOOOO annually and much discussion has been predl
Gated the understanding that substantially this amount
charged into the accounts for 1915 The discrepancy
between this figure and the which Mr. Hines gave
explained by the following note which is given in Mr..
Hines table regarding the estimated advance in in
i0s The statement does not Include the effect Of in
creases covered by Supplements ~ and i3 which
promulgated In December 1918, with regard to which
reliable data are not available II also has been under
stood that further advances of s6OOO0OOO TO sOOO0OO0
yet to
"Thus s2O0OO0OOO TO S3OOO00OOO more wages must be
included operating expenses in 1919 than in i9is at
time which the traflo handled and In consequence the
total earnings made are declining. To estimate with any
confidence what future earnings and expenses viii be
when both earnings and expenses are being affected by
such influences is impractlcabe.
Nobody familiar with railway conditions in general
study the available statistics regarding earnings and
expenses without being driven to the conclusion that
regardless OF the advances in wages government opera
ton has been much expensive than private opera
ton would have been what is more pertinent TO
the present situation that nobody can study the figures
without being driven the conclusion that with exist
ing rates. prices and wages will be dncut for either
the government the railway companies TO operate the
railways and earn reasonable net operating income in
1919.
"These two conclusions once reached, there should
be little dlculty Il would seem in deciding upon the
general policy OF dealing with the railways which should
adopted They should be returned to private opera
ton as soon as practicable in order that the country
benefit Ivy the more economical management which the
companies will provide. Before they returned, how
ever, there should be adopted legislation which will
protect the companies from financial disaster due to the
vast increases Of expenses which have occurred under
soverhment operation"