The Washington herald., 1919-05-07
RAILROADS. LOSS
ISs192,000,000
FOR 3 MONTHS
Operation by Government
In 1919 Brought I'm
mense Deficit.
HINES IS OPTIMISTIC
Director Hints at Raise in
Rates and Predicts
More Business.

Operation of the railroads for the
first three months of 1919 produced a
deficit of s192.OOo.OOo. according to an
announcement yesterday by Walker
D. Hines. Director General of Rail-
roads
The results for the calendar year
1918 show that December 81. 1915 the
deficit incurred by the Railroad Ad-
ministration for that year amounted
to S226, 10000.
Mr.. Hines ascribes the bad show
ing Of the first quarter of 1919 to the
fact that business has fallen of and
that expenses could not be corre-
spondingly readjusted. so that the
, loss arises largely in connection with
the period of readjustment through
which the country is going.
Business Suffers.
Industrial enterprises generally
have suffered embarrassment on ac-
count OF the fact that business has
been curtailed SO much more rapidIy
than expenses could be curtailed," he
says in statement issued last might.
The railroad business is probably
IN 1t nature less elastic than any
other business and shows more nm
favorably the embarrassments of re-
adjustment"
Inc Director General hints at a raise
III rates. He says that the present
unfavorablc results naturally lead to
agitation of the question whether
| there ought to be an increase in
/ rates" To this. however. he adds that
in his judgment present conditions are
too abnormal TO serve as a basis for
any general change in rates.
Passenger business for the first three
months of this year was only slightly
less than last year. The loss in
freight business was much more pro-
nounced.
1t is impossible his statement de-
clares, ION the basis of these three
months to predict the results for the
year as whole. although it is believed
the results will be very much less
unfavOrable if as seems to be gener-
ally anticipated there shall be an i'm
pOrtant resumption of business later
in the year. especially if great crops
now in prospect shall be realized.
"On the trip in the West which
have just completed 1 found the
most pronounced optimism on the
part of business and agricultural
interests generally which gives a
reasonable basis for hoping for an
enlarged business that will be rela-
| lively profitable to the railroads
since handling it should not cor
respondingly increase their costs.
But while it is proper to mention
! these factors it must be admitted
that in the midst of the present pc
riod of postwar rcadjustment it is
impossible to make any confident
statement as to the results of rail-
road operations for the remainder
of this calendar year"
Retroactive Increases.
The first three months of this
year have had to bear a burden Of
$4,000, 900 per month for back pay as
the result of retroactive wage In
creases. Approximately like
| amount will continue for the next
few months and it will reduce
operating income.
The railroad administration also in
ours the deficit brought about by gov
ernment operation of the American
Railway Express Company Eight
months have produced a deficit in ex-
cess of $1O.0OO.OOo
1T is not anticipated" concludes Mr..
! Hines. that the conditions for April
will be more fayOra bIe than tho cop
ditions for January. February and
! March.
Eastern railroads were the onIy
ones to show an actual deficit in net
operating income in March, their de-