The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-29
CHARGES OF PUBLIC
UTILITIES AND CURRENCY
An Interesting Article On Live Subject From the Commercial
and Financial Chronicle

ger. But if money has deprecated 40 per
cent a scent fare is no more now than
3-cent fare was before the appreciation
began, and we venture to assert that
cents would buy more in labor, In sup
plies, in everything that the average
street railway requires in 1900 than it
will buy in 1910. The electric light COM
pany, supplying a municipality and its
inhabitants, from a central station plant,
is never permitted to raise its schedule
rates. though 1t may be required TO low
er them; and the 15-cent rate of today is
no better than a Scent rate would have
been a decade or Whereabouts ago; a 10
cent rate now no better than a Scent
rate at the same time.
Railways are clearly in this class. From
the beginning of American railway his
tory their charges have tended uninter-
ruptedly downward; they have never been
advanced The latest average rate per
freight ton mile reported by the inter-
state commerce commission was 7.54 mills
and if money has deprecated 40 per cent,
that is worth no more than 4.52 mills per
ton per mile was worth before the depre-
citation began. If the depreciation of
money is only 30 per cent 1t is worth as
much as 52S mills: if the depreciation is
placed at 20 per cent, as much as 6.03
mills. II no one would have contended
10 years ago that the railways should
De dshtu 10 carry at any Oh THESE aver
ages. they should not b asked now to
carry for their present equivalent in
purchasing power The public is entitled
to share in the augmented efficiency of
the railway system; 1t may rightfully ask
that some part of the economies of rail-
way progress shall be expressed in d.
minished charges; but 1t may not In good
morals conflscate those economies, nor is
il good sense to seek to do So What
haQ hoe
a gradual unrecognized. unsolicited and
subtle reduction through causes extran-
eous to the industry, causes controlled
neither by the shipper nor by the carrier,
working largely beyond the field of vision
OF either party to the transportation con-
tract And now, when the carrier has
come to recognize that he has lost, the
shipper suddenly realizes that he has
gained, and promptly interposes his objec-
tons to even a partial readjustment.
How far shall the selfish claim of one
industrial factor be allowed to interfere
with the equitable readjustment of the
whole question now to be decided
Those who talk of general advance
in railroad rates" either misunderstood
the question or are exceedingly careless
in the hse of terms. Doubtless few of
them use terms intended to mislead, but
the result is the same. If the average
dollar expended by the railroad for la Dor
and supplies buys no more than 60 cents
would have bought before. the railways
charges have not advanced unless It gets
more than ST. as an average, where 1t
collected but 60 cents before. A genuine
advance in rates would be beyond de-
Tense, it would be as inexcusable as it is
impossible and unthinkable but a gen.
eral readjustment has become more de-
sirable and necessary. Such an adjust
ment cannot completely offset the fall In
currency. 1t must leave the shipper in
possession of a large share of the re-
duction he has so Unexpectedly OBJ
tanned. but 1t must. by some means, be
accomplished. The penalty for failure
to bring it about without undue delay will
be that 1t must be accomplished through
the slow and crushing process of the
failure of investors to supply means for
the development necessary to keep in step
with general Industrial progress.