Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-01-02
RAILROADS RUN At
s150,00O,000 LOSS
Difference In 1918 Between What
U. S. Pays Companies For
Rental and Net Income
AN UNPRECEDENTED YEAR
Receipts nnd Expenses Were Big-Ths
Calculated Loss Does Not Include
Large Loans to Roads

Washington, Jan. 1.-The governments
loss in operating the railroads in 1918 is
calculated by railroad administration
officials at less than S150,00OOco. This
represents the difference between the
aggregate amount the government will
be compelled to pay railroad companies
as rental for tho use of their properties
the o-called guaranteed return-and
the net income which the government
Will receive from the railroads.
1t will take six months more Oh re-
ceipts from the Increased freight rates
to permit the government to recoup its
losses, officials believe. If Congress does
not approve tho proposed five year
tension of federal control, ana as Il COZ
sequence President Wilson carries out
his announced intention of returning the
roads 10 private management at an early
date, the governments loss will NOT be
made up.
This deficit does not include the big
sums-between s15000O,Oo0 and 5000 100000
which have been loaned to railroads to
help them pay for the extensive program
of improvements and purchase of new
cars and locomotives. These loans will
be repaid eventually.
The governments loss cannot be stated
exactly Until the compensation of each
road Is finally determined, and until the
Interstate Commerce Commission COM
piles figures on earnings and expenses
for November and December. Officials
believe, however. that the aggregate Of
government compensation for all roads
will be about $3.50, coo, and that the
net income from railroad operations
credited to the government, will be
little more than $500 100000. For the 10
months IN to Noya,,, 1ar 1 tho oovarr-
ment's net income from the railroads,
as reported by the Interstate Commerce
Commission was $685. 900 900.
Operating revenues for the entire year,
| officials calculate, probably amounted 10
S4.O,WOGOO more than evel before in
railroad history, and operating expenses
probably ran up to S3S00. .00O0Go This
left H,GO, 100000 of net revenus which
was cut down more than $4,000, 80, oy
deductions for ordinary taxes, rentals
for equipment not owned by railroad COM
panies and other incidental losses.
war taxes and expenses of mainta ining
financial and other corporate Offices, in
cludng salaries of officers NOT actuau,r
employed in physically operating the ~au
ways, rlust be paid by the rallroa1 co
panes out of the S950,00OO 600 which me
government Guarantees them.
For the railroads, 1918 was a year which
broke all records of revenues and ex-
penses. Although receipts were nearly 20
per cent. greater, expenses Were even
more 1t took 20 per cent of the opa rating
revenues to pay operating expenses, al
though only 20 per cent. was taken for
this purpose in 1917 Operating expenses,
which ostimated figures for the past two
months amounted to S3,Sco COO We're a
billion dollars more than in 1917. In
creased wages are estimated variously to
have been responsible for between $780,
900 O00 and 10000 900 of this billion.
Eastern roads in the ten months re
ported 81. SOS 100000 revenues and S1551,
Oo0, NO expenses; western roads, $1,S49,-
o00,00O revenues and $500 10000 expenses
and southern roads S6i2, 900 900 revenues
and s493 100000 expenses.