Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1917-04-12
As PRICES RISE
high COST OF LIvING
HITS THE RAILROADS
s,l,lss VIII 9, Crippled ua-
les Relief Comes Soon
EXPENSES UP, RATES DOWN

eteip0 Revenues, Chairman krutt'
sehnlts Tells Congress Committee.
Unified Federal Control viii Improve
Conditions.
Washington, April 2-The condition
In which the railroads find themselves
% q result Of constant increases In
wages, prices Of material, taxes and
other expenses. while their revenues
arc restricted by legislation. was strik-
ingly described BY Julius Kruttschnitt,
Chairman Of the Executive Committee
Of the Southern Pacific Company, In
his testimony during the past few days
before the Joint Congressional Com
mittee on Interstate Commerce. which
u making Q study Of the question Of
railroad regulation. Mr.. kruttschnitt
urged the committee to recommend
plan Of regulation which will center
responsibility for regulation and Its
results in the federal government, 30
that conditions affecting both expenses
and revenues may be made subject to
q uniform policy instead Of the waste
full and often conflicting policies In
volved In the system Of combined state
and federal regulation.
Why Roads Need More Money.
Mr.. Kruttschnitt's testimony also had
q bearing on the reasons for the appli-
cation Of the roads to the Interstate
Commerce Commission for q general
advance in freight rates. he showed
that while the price of transportation
has declined in recent years. the cost
Of producing transportation. like the
cost Of almost everything else, has rap
Idly advanced. This he illustrated by
showing that II freight and passenger
rates had increased during the past
twenty years in the same proportion as
average commodity prices the railroads
of the United States would have re-
: ceived $1,854. 100000 more for trans
portation in 1915 than they did receive.
This saving to the public was effect
ed. In spite of IN increase Of 90 per
cent in the cost Of operation of trains.
by q reduction in the average passen-
ger rate per mile from 2O4 cents In
1895 to 1.06 cents In 1915. a decrease
Of 8 per cent, and by q reduction IN the
average freight rate per ton mile from
$50 mills In 1895 to 10 mills in 1915. or
10 per cent. During the same period
the cost Of operation per train mile
rose from 81 cents to $1.78, almost
doubling. At the same time the aver
age price Of 848 commodities enumer-
ated in bulletin Of the Department OF
Agriculture increased 1l5 per cent.
Transportation Is practically the only
commodity in general use that has not
! increased tremendously in price during
the past twenty years, freight and pas
senRer charges being lower than they
were twenty years ago.
Bio Saving 70 Public.
II rates had risen pr0p0rtionately to
| the increase in the cost Of other arti'
cles Of ordinary use, Mr.. Kruttschnitt
told the committee, the average pas
senger rate in 1915 would have been
2.96 cents q mile, or 80 per cent higher
than It was, and the average freight
rate would have been 1.21 cents, or u
per cent higher than 1t was. The say
Ing to the public in passenger fares
through this difference was $4,000.
600 and in freight rates 81 $40, 100000.
Universal railroad bankruptcy undel
this reduction in rates and increased
cost Of operation, he said, was avoided
only by heavy expenditures to obtaiI
increased efficiency In train movement
making 1t possible to haul more tons o
freight per locomotive. This had re
duced the average cost Of hauling
ton Of freight, but the decline In tn
average freight rate had reduced tn
net revenue Of the roads from each to-
hauled. II the operating costs Of tn
railroads, including the prices OF coal
labor and material, continue to ad
vance at the present rate lot Of rail
roads will be in the hands Of receiver
BY 1918 unless some relief is afforded
Nj. Kruttschnitt told the committee.
lowing to the rise Of commodit
Il prices" he said, 1.-THE purchasing powe
i II the dollar has fallen IS per cent an
the railroads are in the position OF b
Ing compelled by law to accept pa.
ment fot their service to the public 1
currency worth 45 cents on the dolla
Pubiie's Chief Interest.
'The public's greatest interest 10
adequate transportation facilities IN
not 10 much in low rates. Az to mo,
commodities freight rates form ver
small proportion Of their cost. e!
GLIDING low grade commodities. II
percentage Of the freight rate to tt
cost Il 20 slight % to offer no jush6c
ton for any substantial increase
prices to the consumer. 1t may
stated with little fear Of contradictic
that the consumer seldom, II eve
profits from lowering Of freight rate
"Extortonate charges are thing
the past. and under the attempt to G.
rates to their lowest possible fgu
the interest of the whole public In d
! character and standard OF transport
ton IL subordinated to the interest
that part Of the public only that prof
BY lower rates-that 10 to say. the shi
pers and their agents and not the &c
eral public. the ultimate consumer