Evening capital news. (Boise, Idaho) 1901-1927, 1919-09-21
OPERATE ENGLISH
RAILROADS At Loss
Interesting Statement Made in
Connection With Avenues of
Transportation-No Profits
Reported.

Instead of the reported profits for
the English government in the opera
ticn Of railways from the opening of
the war down to thu end of 1918, there
was an actual net loss of about s119.-
100000. For the present year 1t Is
estimated that the charge on the pub
lie for government operation will run
10 about $s7o,ooo,0oo.
During what may be termed the war
period of government railway control
in the United Kingdoms, lasting from
Aug. 5, 1914, to Dec. 81, 1918, the av-
GRACE net annual operating revenue of
the roads exceeded that of 1918, in
spite OF slight deficit in the first
part of the period, ending with Deem
Ter, 1915. The amount of the railways
ret income in 1918 had been granted
them as yearly guarantee by the gov
eminent at the outset of the war.
These figures, which are shown in
recent statement presented to the Brit
iEh parliament, do not however, in
ciude extra wear aud tear raising from
additional traffic carried. which is es-
timated at $780, 900 900 and for which
tnc government sun REMAINS lIdbl6 To
the companies. As result of this
liability, II is estimated that during the
period considered, the government, al
though making an apparent profit of
ISL 100000 from running the railways,
actually sustained net loss of some
$119, 900
The year 1918 marked the end of
balance of revenue, large deficit be-
Inc unavoidable in the 1919 operation
ct the railways. This years revenue
Is estimated at s725. 900, 900, the de-
crease from last year being due to
large falling off in government traf-
fic. Expenditures are estimated at the
unprecedented figure of 1851. 900 600
because of increased cost of labor and
ma terials. The resulting deficit is
156.0o0000. In addition to meeting
this deficit the p ibic treasury must
pay the railways their annual guar
anteed revenue. AS a result the charge
on the public for government opera
ton of the railways during the cur
rent year will be about 1870, 600.
BUSINESS UNCERTAINTY
The business uncertainty which has
been occasioned by general industrial
unrest and by the focusing of atten-
ton on the prevailing level of prices
Is described as temporary by the Ma
tional Bank of Commerce in New York
in its monthly discussion OF the money
market.
In this respect. the bank saws there
would not seem to be grounds for UNI
due apprehension. The business activ-
fty of the country Is based on funda-
mentally sound and essential prodtlc-
ticr. With due consideration given to
producing costs the price-level agita
ton Goes not threaten general bust
ness activity, and losses resulting
thersfrom should fall mainly on specu-
lative profiteers. Furthermore as tho
Fed9fal Reserve board has pointed out
the existing level of prices has not re-
suited from an undue initiation of cur
renst.
There is another aspect of the stu
alter, however, which is receiving
too ustle nsideration-namely, the
Importance which our foreign trade
has assumed In relation to our total
trade. During the war production was
expanded to meet a good share of the
needs OF the world. Our industries
greater in sny respects than domestic
marksts can now absorb, so that the
continuance of domestic prosperity is
invo0sd with our foreign trade For
inc FISCAL year ending June 30, 1919.
the Deiance of exports to Europe over
fmpeees totalled about s4o5O, OO0, 900.
During the same period credits ex-
ten0od by the government to the allied
natSeoe amounted Approximately to
s3,5ee.Oo0,o00. In a word our exports
were financed by ourselves. through
the government on long term credit
basis. In the present year. however
sums available for such financing are
negligible.
Tho permanent maintenance of the
nigh level of war exports Is not de-
ed. but our own continued prosper
= demands that establishments be eff
i ted gradually. The needs of the
countries of Europe are common
knowledge. Their inability to pay for
supplies at once in either gold or goods
requires no reiteration. What must
De appreciated is that under existing
circumstances We cannot afford not to
FELL to Europe: and that consequently
the problem of financing our exports
is most urgent.
Bills are pending in congress which
would provide the legal basis for the
formation OF financing corporations.
There Is an unfortunate tendency to
nope for salvation by legislation-to
delay action pending the enactment
OF law. The situation calls for the
direction and leadership of men who
VIII work out plans enlist the co-op-
erative efforts of industry, build up
an organization, and go at the matter
IN hand. Such elements of leadership
which would give meaning tn what,