New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-05-30
RAILROAD DEFICITS GROWING

Railroad business does not show
the expected improvement in May.
according to near official informa-
ton from Washington, received at the
State House this week. Director
General Walker D. Hines makes the
explanation that we are passing
through a transition period. But he
thinks business conditions will i'm
prove and it may not be necessary
TO increase freight rates, at least not
.aterially.
IL il true that the country ia pas
.ing through a period of transition
from the war basis to a peace basis.
II is also very apparent that the ad-
mlnistration is doing little in a prac-
eicai way to shorten this period of
transition. The President has been
wholly occupied abroad with the
European affairs and he has left no
one IN authority to look after the
acute problems at home. The coun-
try has been left TO shift for itself
as best IL could.
Even the United States Railroad
Administration does not function ss
a reconstructiou agency. The trans-
portation systems of the country
seem paralyzed by the cumbersome
government methods of operation.
The private railroad managers long
followed the system of building the
country and Encouraging industry to
develop revenue tonnage. II ~aB a
ease of necessity to keep their roads
from going bankrupt. But the gov
ernment ia not modelled for such
. task and has ignored this all i'm.
portant function of ~rsiiroading from
the start.
Had the railroad administration
followed out the policy of the sucess-
full railroad managers since the ar
mistiee, the business Of the country
would have been stimulated to a
marked degree. Instead of an ever
increasing deficit, there would have
been an increase in evenue from an
increase an tonnage hat would have
resulted from such a policy.
But instead the business of the
carriers as a whole continues to de-
crease. In 1918 the deficit was $780,
1874, 949. 0 For the frat four months
of 1919 the deficit is already $4,000
e00.0d. This indicates a remarkable
decrease of revenue. Tn. war and
h postwar conditions are blamed
for this state of affairs.
The original revolving fund of
$500, 900 900 90 appropriated last year
is exhausted. Now comes the director
General with "a request to Congress
for 81 zoo, 000,0 w 90 carry the roads
through the second year. This will
make a total Of 81, 200 900, OOG e0.
Eventually s1,z14, OO0, OOO.OO of this
amount may be returned, Director
Hine. thinks.
Add to these amounts the revenue
increases from the radical advances
in freight and passenger rates a year
q and il becomes strikinRly evident
that government operation has been
costly experiment 70 the coun
try.
Had the transportation service
been improved materially, had ez-
tensive betterments and addition 10
equipment, roadway. and buildings
been made. had additional railroad
been built where needed 20 ,
open new districts or 70 promote
growth Of industry. the public might :
been able TO account for sheee .
deficits. Btt the transporta- .
ton srrv hF, been severely -
5ucei end The Impression IS abroad
little Improvement has been =
and no nc~ mileage IF any \
-ue7e constructed lt-is- evil ?
dent bat thc new mach merry is -s- !
q