The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1921-09-04
AN ODD SITUATION.

LII SplIc 1OL ulSHcI railway IdLSS
both passenger and freight, the PEG
pie of the United States paid almost
$21 100000 less for railroad transport
tation in the first six months of 1921
under private operation says the
Railway Age, than they did in the
first six months of 1919, under gov
eminent operation.
''This was due partly to the fact
| that smaller amount of railroad ser
vice was rendered, but mainly to 9th
er causes. The first half of 1919
like the first half of 1921, was a peri
cd of business depression. The
amount of freight service rendered
was Z IL per cent less than in the
corresponding part of 1919, and the
amount of passenger service rendered
almost Is per cent less. But in spite
of the smaller traffic handled the total
earnings of the railways in the first
six months Of 1921 were almost
1920, 600, 900 more than in the first six
months of 1919. How, then, 1t may
be asked, can it be that the public
paid less for it's railroad service than
in the first six months ofs1919?
"The explanation is very simple.
In 1919, under government control,
the public paid in taxes for part OF
the transportation service it receiv-
ed because the railways. were under
government control and incurred a
large deficit. In the first half of 1921
the public paid for its transportation
entirely in freight and passenger
rates because the railways were un-
der private operation.
"The total earnings Of the railways
in the first six months OF 1919 from
their rates were $2,356,39O but the
government in these six months, ac-
cording to the estimate of Director
General Hines, incurred a. deficit OF
1921 ,1O1, 654, which made the total
amount paid by the public in both
rates and taxes $2,652,7S6,9S4. The
various governments, especially the
state governments, got back from this
amount in taxes paid to them by the
railroads SOL ,663,514. This made the
net cost to the public of the railroad
service rendered to it $2,561, 1923, F0.
I'm the first six months of 1921 the
total earnings of the railways were
|sz,676, 497 .252. The an. unit of taxes
paid by the railways TO the national
and state governments was $136.120,-
$50. Deducting this from the earn
ings makes the total net cost to the
public of the railroad service it re-
ceived $2,540,3 76,442, or $20,747, OBS
less than the net cost in the first six
months of 1919.
THE saving made to the public in
tine total amount paid by 1t for rail-
|way transportation was made at the
expense of very heavy losses to the
owners OF the railways. The net OPP
|erating income actually earned by the
railways In the first six months of
1921 was less than $142.0O0,000. This
was about one-third of the net return
they received in the first half OF 1919
under government control, when their
net return was guaranteed. 1t was
about $4,000, 900 less than the mere
interest on their bonds, since six
months interest on their bonds is
about 1897 100000
1.-THE necessity of paying given
amount OF taxes imposes as much Of
i burden on business as the necessity
OF paying q given amount of rates.
The present cost of railroad transpor-
|tation undoubtedly is too high. but
lit is the railway owners rather than
the public who have suffered most
from II. thus far this year, since,
while the public actually has paid less
for railroad service than 1t did In 1919
under government control. the own.
ers of the railways have received
many millions of dollars less of net
return"