New-York tribune., 1919-05-25
nirectOr Asserts the
Deficit for Roads
Anril 80 Amounted
. to S486,OOO,00O
Quarter Billion
Last 4 Months
Puts Blame ON Hard
19l7-'I0W Winter and
Trade Depression
NetD York Tribune
IV1shin0tOn Bureau

NeD York Tribune
Washington Bureau
! WASHINGTON, May 24.-Walker D.
Hines, Director General of Railroads,
s.day asked Congress to appropriate
u20O, 100000 in addition to the $780,
100000 already provided to meet def
ieits and to continue government op-
Grafton of the American railroads
More may be asked later if the deficit
continues to grow.
The loss to the government on ac-
count of the railroads up to April
80. Mr.. Illness figures showed, was
N86O00, 900. The Director General
made no predictions as to future profits
Or losses, but said he believed it ex-
pedient to defer consideration of a
raise in rates until the present transi-
tional period had passed. He asked for
E23,000,000 to be used as additional
working capital to meet business obi
cations promptly.
The Director Generals financial
statement showed that the operating
deficit for 1918 was s236,184,94O. The
deficit for the first four months of 1919
was s25a900, 900
Gives Causes of Deficits
The 1918 deficit was due. the Director
General said, to the severity of the
/ winter and the fact that the 25 per
n cent increase i'll rates was in effect
only little over six months, while ex-
sarses rose steadily throughout the
Isar. The holdover war prices for ma
eras, added to the unprecedented
nlhng off in freight traffic after the
agnng of the armstice, accounted for
ne deficit for the first four months of
lsls, he said.
The Director Generals accounting of
Me requirements for uhich the ST.
MpoO,oOO appropriation is needle d
follows:
REQUIREMENTS FOR 1918
mount Necessary to defrav
epsfsting deficit. the difference
pesween the standard rental
psyao!e to the railroad COM
panles and the net operating
income for the year 1913 .S236.184,
so hee excess of current assets
o'et current liabilities. partly
svaiabie for the immediate
worxlng capital requirement 201. .938.1os
s1p'ovements on inland water
Arsss.- wsys .;,.,,.... .:.......... 2.e41.sss
emouhs advanced for account of
..saEoad companies to enable
VIZ. Ms.n 70 pay in part their cur
a, ,sns liabilities 100 900 900
enoant OF additions and better
aeas expenditures including
ssu'pment made 10 the railroad
s.opertes during 1918, which
4 ss! &c carried by the railroad
tshstration ~ for the time be-
tesss. .:::::........... 352,553,455
.ApahieS not Immediately re-
S''a0ie .................... 4s,4S3. .s59
H.. .'si requirements for 1913. .s941. .so2. .43t
~ amount heretofore appropri-
sea ...................... SOC, 900, 900
sesnce required for 1918. SAL .802 .438
1SiiAArED REQUIREMENTS FOR 1918
~ amount Of additions and bet
fsssH'sht expenditures s253 435. .760
.'...sement .,.'ent to develop inland
h. 'sssssys srss -. 1920. 900
~ nnnancing Boston & Maine
sssi.osd ss.osd ComDany's reorgan-
! ksrss;na. ks'en -,................ 10000, 900
-Aang deficit for first four
irssnsns of 1919 ........... ESQ 0oo n0O
II WORKING capital. 49,. 223 .06i 1902
4'al ss,;nated requirements
'0' 1913 .................. .s758. 1877 ,5s2
wsnd ss,a total for 1918 and
w ..,.... ................$ 81 200 600 600
Blames Severe Winter
iss operating deficit Of s236, 6,1s4,94o
= ns year l918," the Director General
was largely due to two facts:
~ the winter Of 1913 was unpre-
ss'a'eo In it's severity and its costly
On railroad operations, and
sa' me increases In passenger and
- rates, averaging about % per
we're IN effect for only few
~ excess Of six nonths, while
.'y Increased expenses, due to war
sss.sions, we're effective on an as
s'hg Ecale throughout the twelve
Ass operating deficit Of approxi-
Sy z5o,oo0,000 for the first four
as of 1918 is duo in part TO cunu-
n'gh levels Of costs brought
ny the war for labor and mate
ana in part 10 the sudden and
~fmai falling Off Of business. result
ms cessation Of war actiyiticn. the
va drop in the demand for fuel
ios other basic commodities and
ssnerai state Of beaitancy due Ia
ssshsttjon from war conditions to
kate Increases Deferred
49, fact that .be present period /,
onsl and apparently on the eve
ks.p>ftaDs changes has made II ex.
~ =. defer ragii the matter can
sfs@sIy msasared .Le considers.
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