The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1917-04-13
As PRICES RISE
HIGH COST Of LIVING
HITS The RAILROADS
Service Will Be- Crippled Un-
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

Hamper Railroad Credit. While Ad-
strips Revenues, Chairman krutt-
schnitt Tells Congress Committee.
Unified Federal Control Will Improve
Conditions.
Washington. April 2.-The condition
In which the railroads find themselves
as a 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. which
is making a study Of the question OF
railroad regulation. Mr.. Kruttschnitt
urged the committee - recommend
plan OF regulation STich will center
responsibility for regulation and its
results In the federal government. so
that conditions affecting both expenses
and revenues may be made subject to
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.
MIR. Kruttschnitts 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. lie 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 If 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 81 SOL. 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 Il reduction in the average passen
1898 to 19S cents In 1915. a decrease
of per cent. and by a reduction in the
average freight rate per ton mile from
$3.50 mills In 1895 to T.3 minis in 1918. OF
Is per cent. During the same period
the cost Of operation per train mile
rose from 81 cents to Sis. almost
doubling At the same time the aver
age price of 346 commodities enumer
ated In a 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
senger charges being lower than they
were twenty years ago.
Big Saving to Public.
If rates had risen proportionately 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
2.95 cents mile, or 80 per cent higher
than 1t was. and the average freight
rate would have been LII cents, or 81
per cent higher than ii was. The saw
ing to the public in passenger fares
through this difference was $314,000,-
600 and in freight rates $1.340,O00, 900.
Universal railroad bankruptcy under
this reduction in rates and increased
cost of operation. he said, was avoided
only by heavy expenditures to obtain
increased efficiency in train movement,
making it possible to haul more tons OF
freight per locomotive. This had re-
duced the average cost of hauling
ton of freight. but the decline in the
average freight rate had reduced the
net revenue of the roaG from each ton
hauled. If the operating costs of the
railroads, Including the prices of coal
labor and material, continue to adj
vance at the present rate a lot OF rail
roads will be IN the hands of receivers
by 1918 unless some relief is afforded.
Mr.. Kruttschntt told the committee.
Owing 10 the rise OF commodity
prices, he said. the pure hasing power
of the dollar has fallen 55 per cent and
the railroads are in the position OF be-
ing compelled by law to accept pay
tutut lot tlitlf service TO the puDlc In
currency worth IS cents on the dollar.
Publio's Chief Interest.
The public's greatest interest is in
adequate transportation facilities and
not so much in low rates AS to most
commodities freight rates form very
small proportion OF their cost. Elk
Guiding low grade commodities. the
percentage of the freight rate to the
cost is SO slight as to offer no justifica-
ton for any substantial increase IN 4
prices to the consumer Ii NAV be
stated with little fear Of contradiction
that the consumer seldom. if ever
Profits from lowering of freight rates
"Extorti0nate charges are thing OF
the past, and under the attempt TO cut
rates to their lowest possible figure
the interest of the whole public in the
character and standard of transporta-
ton is subordinated to the interest OF
that part of the public only that profits
by lower rates-that is TO say. the shin
pers and their agents and not the gen.
rol in tfx Al,