Show GOVERNMENT LOSES MONEY ON RAILWAY COMES OUT IN THE HOLE IN OPERATION OF RAILROADS RAILROADS RAIL RAIL- ROADS OF THE NATION Will Take Take Six Months More of Re Re- From Increased Freight Rates to Permit Government to Recoup Its Losses Washington The The governments government's loss lossIn lo loIn lossin In operating the railroads In 1918 1915 Is calculated U by railroad administration officials at about This represents the difference between the amount the government will be compelled com corn to pa pay railroad companies as rental for tho the use of t their properties properties- the so-called so guaranteed return return and and the net income which the government will receive from the tho- railroads It will take six months more of receipts receipts receipts re re- re- re from the lie increased freight rates to permit the government to recoup its losses officials believe If congress does not improve the proposed five- five year extension of federal control and andas andas andas as a consequence President Wilson carries carries car car- ries out his announced intention of returning returning re re- returning re- re turning the tue roads to private management management manage manage- I ment at an early date the governments government's governments government's govern govern- govern I ments ment's loss will not be made up I This deficit does not Include the lie big sums sums between between and which which have hava been loaned to railroads to help them pay for lor the x program of improvements and purchase of new cars cm's and locomotives These loans will be repaid eventually The governments government's loss cannot be stated exactly until the compensation of each euch road is finally finall determined and and until the Interstate commerce commission commission com coni- mission compiles figures on earnings and expenses for November r and umi De De- De- De cember Officials believe however that the aggregate government compensation compensation com corn for all roads will be about and that the lie net income from railroad operations credited to the government will be a little more than For the ten tell months up to NoY November 1 I the governments government's s 's net income from flom the railroads us as reported re re- re ported by the interstate commerce commission was Operating revenues for the entire year ear officials calculate probably amounted to more than ever before In railroad history and timid operating expenses probably ran up to This left a billion dollars dollars dol dol- lars of net revenue which was cut down more than b by deductions deductions de de- de from ordinary taxes rentals for equipment not owned by railroad companies and und other incidental losses |