New Britain herald., 1919-05-07

pCnSeS, much less tho rents gIIaran- tocd them by the governmc and for the country as a whole earnings fell far short of the rental guar Antoc, though roads in the South. Central and Western territories had no actual loss
 Huge Total for Three Months.
 WithstandinS the situation, Mr. Hines expresses the view that better results will come later in inc year and the deficit will at least be paE- lN offset It is this factor, he says, and the present abnormal conditions that lead to tho conclusion that H rate increase is inadvisa blc to meet a situation that may prove temporary.
 Figures presented by the dircctor- general show an even greater deficit than those printed five days ago and those presented by the bureau of railway economies yesterday from interstate commerce commission re- turns. Mr.. Hines figures include some Sm1l! companies, water lines and the central administration which do not appear in the other figures. They make tho .dcticit larger.
 It is plain that congress will have to take speedy action 10 relieve the railroad situation as soon as il is called Provision has been made for May need, but if it becomes necessary to carry the temporary financing plans to tho end of the year the task will be a difficult ono.
 In a statement made with the de- clarcd intention of keeping the public as fully informed as possible, the di- rCCtor-genCral said:
 ''rT1oo l.ccI1lt IC,,tIor ,.c.,r 1918 show that at December 31, 1918, the deficit incurred by the railroad administration for that year, after dcductinG the rental due tho railroad companies, amounted to $226, 6,0OO,O0O. This included the expenses of the central and regional administration and also included the operations of the inland waterways under control of the railroad admniS ration. as well as the incidental and miscellaneous items which must be taken into ac- count in d complete statement.
 'ThcrC remained com DaratiVelN small accounts of back pay for the calendar year 1918. which were not charged into the accounts for that year, but which have largely been charged into the three months end ing with March, 1919.
 ''For the months of January. Feb ruary, March, 1919, tho aggregate deficit incurred after GCNur1,..M rEu rental due the railroad companies approx NimatelN $192,OO0, 0,OOO. This fig urc includes not only the Class 1 railroads but all other roads under Federal control the expenses of the central and regional administration thC operation of inland waterways under control of the railroad admin iStrati0n, as well as some incidental and miscellaneous items.
 Tn arriving at this figure there has been charged against each of these months onc-tWclfth of the annual rental of the railroads. Generally speaking these three months have al ways earned much less than thrcc- tWcIfths of tho return for the year SO that a substantially less charge of rental into theSC months would not bo inappropriate. Still il seems preferable to charge a full Ors- twelfth of tho rental into each of thoSc months rather than to run the risk Of an impression arising that there is any disposition 10 undcr- stat" inc actual results.
 ITO n large extent the unfavOra blc results of January, February and March arc duo to tho fa a,r that husj- ness has fallen off and that expenses could not be COrrespOndinglN read justrd, so that the loss largely arises in connection with tho period of re-