The Clay City times. [volume] (Clay City, Ky.) 1901-current, 1917-04-05


plan OF regulation which will center
responsibility for regulation and Its
results ia the federal government. so
that conditions affecting both expenses
and revenues may be made subject to
q uniform policy instead of the waste
fuI and often conflicting policies I'm
volved In the system OF combined state
and federal regulation.
Why Roads Need More Money.
Mr.. Kruttschnitt's testimony also had
a bearing on the reasons for the appli-
cation Of the roads to the Interstate
Commerce Commission for n general
odvance 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 ~ freight and passenger
rates had increased during the past
twenty years in the same proportion AZ
average commodity prices the railroads
OF the United States would have re-
portation In 1915 than they did receive
This saving to the public was effect
ed, in spite OF an Increase OF e3 per
cent In the cost OF operation or trains.
by q reduction In the average passen
ger rate per mile from 204 cents In
1895 to los cents In 1918. a decrease
Of 3 per cent and by reduction In the
average freight rate per ton mile from
$50 mills In 1888 to 7.3 mills in 1915. or
10 per cent During the same period
the cost of operation per train mile
rose from W 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 rs 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 invent, wears ago
Big Saving to Public.
II rates had risen proportionately to
the increase in the cost Of other arti-
cles of ordinary use. MIR. Kruttschnitt
told the committee. the average pas
senger rate In 1918 would have been
2.95 cents a mile. or 80 per cent higher
than II was. and the average freight
rate would have been III cents. or 66
per cent higher than II was The saw
ing to the public in passenger fares
through this difference was $314, 1000.
600 and In freight rates 81. BAG. 100000.
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 il 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 roads from each ton
hauled. II the operating costs OF the
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 receivers
by 1918 unless some relief Is afforded.
Mr.. Kruttschnitt told the committee.
Owing to the rise OF commodity
prices" he said. "the purchasing power
Of the dollar has fallen IS 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 AZ cents on the dollar.
PubIio's Chief Interest.
1.-The public's 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. Eek.
Guiding low grade commodities. the
percentage OF the freight rate to the
cost Is So slight as Ia offer no justifra-
ton for an, substantial increase In
prices To- the consumer II may lie
stated with little fear uf contradiction
hat the consumer seldom II ever.
profits from n covering of freight rates.
"Exturtionatr harges are thing OF
The past and under the Mt mpi 10 ut
rates 10 their lowest possible figure
the interest OF the whoi 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 ship
pers and their agents and not the gen
rral public the ultimate consumer
Bad Cough? Feverishp 0rippy?