The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1917-04-12
AS PRICES RISE
HIGH COST or LIVING
HITS THE RAILROADS
Service VIII 30 Crippled Un-
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

Hamper Railroad Credit, While Ad'
| vance In Labor and Materials Out.
strips Revenues, Chairman krutt-
sehnitt Tells Congress Committee.
Unified Federal Control viii Improve
Conditions
Washington. April 2.-The condition
In which the railroads find themselves
as result OF constant Increases In
wages. prices Of material. taxes and
other expenses. while their revenues
are restricted by legislation. was strik'
ingly described by Julius Krutts hnitt,
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. when
Is making a study Of the question OF
railroad regulation Mr. Kruttschnitt
urged the committee to recommend a
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
a 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.. Kruttschntt's testimony also had
a bearing on the reasons for the appli-
cation of the roads to the Interstate
Commerce Commission for 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 Sl.G54 100000 more for trans
portation in 1915 than they did receive.
This saving to the public was effect
ed. In spite of an increase OF 93 per
cent in the cost Of operation OF trains
BY a reduction In the average pasSen-
ger rate per mile from 2.H cents In
1898 to Los cents in R9l5, decrease
Of 3 per cent. and by reduction In the
average freight rate per ton mile from
S.39 mills In 1895 to 7.3 mills In 1919. or
Is per cent During the same period
the cost Of operation per train mile
rose from 81 cents to $l.7S. almost
doubling. At the same time the aver
age price OF BAG commodities enumer-
ated In bulletin OF the Department OF
Agriculture increased ll5 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
senger charges being lower than they
were twenty years ago.
BIG Saving to Public.
II rates had risen prOportiOnately to
the increase In the cost Of other arti.
cles OF ordinary use. Mr.. Kruttschntt
told the committee. the average pas
,enger rate In 1915 would have been
2.95 cents q mile, or 80 per cent higher
than 1t was, and the average freight
rate would have been l.2l cents. or w
per cent higher than 1t was. The say.
Ing to the public In passenger fares
through this difference was $3l4.OOO,-
600 and In freight rates 81. 340. OO0, 900.
Universal railroad bankruptcy under
this reduction 10 rates and increased
cost Of operation, he said, was avoided
only by heavy expenditures to Obtain
increased efficiency In train movement,
making 1t possible to haul more tons OF
freight per locomotive. This had re-
duced the average cost OF hauling a
ton Of freight, but the decline In the
average freight rate had reduced the
net revenue Of the roads from each ton
hauled. II the operating costs Of the
railroads. including the prices of coal.
labor aud material. continue to adj
vance nj the present rate a lot OF rail-
roads will be in the hands Of receivers
by 1915 unless some relief Is afforded.
Mr. Kruttschnitt told the committee.
Owing to the rise OF commodity
prizes. he said. 'the purchasing power
" the dollar has fallen 81 per cent and
The railroads are In The position Of be-
Ing compelled by law to accept pay
ment for their service TO the public In
currency worth Is cents on the dollar.
Publie's Chief Interest
THE puhllcs greatest interest Is In
adequate transportation facilities and
not so much In low rates AS to most
commodities freight rates form a very
small proportion OF their cost. Ex-
Guiding low grade commodities. the
Of the freight rate to the
cost Is So slight as 10 offer no justitiia
ton for any substantial increase In |
prices to the consumer II may he |
stated with little fear ~ contradiction /
that the consumer seldom. IL ever. |
profits from y lowering OF freight rates.
"Extorti0nate charges are thing o! |
he past. aid under the attempt to cut
rates to their lowest possible figure !
he interest Of the whole public in the |
n rspfef and standard NJ fransDorfa- 4