Bisbee daily review., 1919-01-02
Administration Officials Cal
 culate 1918 Deficit at More Than $15O,OOO,O ,OOO; Six Months Needed to Retrieve
Unless Congress Approves Five Year Extension, Uncle Sam Must Bear Loss; Other Sums Omitted in Report
CBy Review Leased wirel

WASHINGTON. Jan. 1.-The gov
 ernment's loss in operating railroads
 in 1918 is calculated by railroad ad-
 ministration officials at less than
 S15O.OOO0O0. This represents the diff
 ference between the amount the gov ernment will be compelled to pay rail- read companies as rental for the use of their properties-the so-called guar anteed return-and the net income. which the government will receive from the railroads.
 It will take six months more of re- ceipts from the increased freight rates to permit the government to recoup its losses. officials believe. If con gress does not approve the proposed five year extension of federal control. and as a consequence, President Will son carries out his announced inten- tiOn of returning the roads to private management at an early date. the governments loss will not be made up.
 Other Sums Not Included
 This deficit does not include the big sulns-between S15O. .0OO. eco and S20O. 0O,000-which have been loaned to railroads to help them pay for the extensive program of improvements and purchase of new cars and loco motives. These loans will be repaid eventually.
 The governments loss cannot be stated exactly until the compensation n i1f .1aF until the interstate commerce com mission complies figures on earnings and expenses for November and De eember Officials believe. however. that the aggregate government com penSatiOn for all roads. will be about S95O 100000 and that the net income from railroad operations credited to the government will be a little more than $500, 100000 For the ten months up 10 November 1, the governments net income from the railroads. as re- ported ty the interstate commerce was $6O5. 1000, 900.
 Operating Revenue Large
 Operating revenues for the entire year. officials calculate. probably to s4.SOO.OOO. more than ever before in railroad history. and operating expenses probably ran up to S3.S00. 900. This left billion dollars of net revenue. which was cut down more than S200. .OOO.OOO by de- ductiOns for ordinary taxes. rentals for not owned by railroad com panies and other incidental losses.
 War taxes and expenses of main .aining financial and other corporate offices. including salaries of officers not actually employed physically op- srating the railways. must be paid by he railroad companies out of the S950,000. .000 which the government guarantees them.
 For the railroads 1918 was a year which broke all records of revenues md expenditures. Although receipts were nearly 20 per cent greater. ex- )enses were even more. It took So ,er cent of the operating revenues O pay operating expenses. although 'nly 70 per cent twas taken for this purpose in 1917. Operating expenses which. with estimated figures for the 'ast two months, amounted to S. O,00O.O00. were a billion dollars nore than in 1917 Increased wages Ire estimated variously to have been for between $500. 100000 nd $500 100000 of this billion.
 In the ten months, ending Novem- Ter l. for which the interstate com nerce commission has compiled defi- lite reports. receipts from freight and and other revenue sources rere S4.032 .00O. 900. or a little less han the S4.041. .OOO. .0OO. the revenues or the entire year of 1917. In the en months $2.S1S.OOO.OOO came from reight and $S56.OOO.OOO from passen- CT traffic.
 Operating Expenses High
 Operating expenses for the ten iOnths amounted to $3,247. .000.00O or bout s400. 100000 more than the se.- 52.00O.0O0 expenses for the entire ear of 1917. So-called transportation xpenses, including the bulk of the ost of running the trains. amounted ) S1.666,00,000; maintenance of cars nd locomotives cost $S97, 900. 900. and