Crittenden record-press. [volume] (Marion, Ky.) 1909-191?, 1917-04-12

Hsmper Railroad Credit, While Ad.
vance In Labor and Materials Out.
strips Revenues, Chairman krutt.
'ehnitt Tells Congress Committee.
onihst Federal Control viii lmprov,
Conditions.
Washington. April 2.-The condition
In which The railroads find themselves
as :" 80 - constant increases in
wa '"> ~ material, taxes and
Other eSl"r>r, while their revenues
are rt>!f.,.rd 10y legislation. was strik.
inelr dcs r'b"d by julius Krutts hpitt.
chairman OF the Executive Committee
or HE Southern Pacific Company, Ia
MS testimony during the past few days
before The Joint Congressional Com.
mittte on Interstate Commerce. which
IL making a study Of the question OF
railroad regulation Mr.. Kruttsrhnitt
urged the committee to recommend
plan OF regulation which will center
responsibility for regulation and its
results In the federal government. SO
that conditions affecting both expenses
ana revenues may be made subject to
q Uniform policy instead OF the waste.
nj and often conflicting policies in,
Voived In the system OF combined state
and federal regulation.
Why Roads Need More Money.
Mr.. kruttschniit's testimony also had
q bes rlng on the reasons for the sppli.
cation OF the roads TO the Interstate
Commerce Commission for y general
edvance In freight rates. lie showed
that while the price Of TRANSPORTATION
hiss declined in recent wears. 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 sme proportion IS
average commodity prices the railroads
OF the United States would have re.
ceiyed $i,G5t .oOOW0 more for trans.
portat'on 10 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 q reduction In the average passen.
ger rate per mile from 2.OI cents IN
1899 TO los cents In 1913. n decrease
Of 3 per cent. and by = reduction in the
average freight rate per ton mile from
SD mills In 1895 TO 73 mills In 1915. or
l3 p~r 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 3i6 commodities enumer.
ated In a bulletin OF the Department OF
Agriculture Increased lis per cent.
transportation Is practically tue 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 Ut other ar,i.
cles OF ordinary use, Mr.. Kru,tschniit
told the committee, the average pas.
engcr rate in 1915 would have been
"o5 cents mile. or 80 per cent higher
than II WAS. and the average freight
rate would have been LII cents. or III
per cent higher than II was The say.
Ing to the public In passenger fares
through this difference was Ssli.0OO..
600 and In freight rates $l,3@O.O0o.0O
Universal railroad bankruptcy under
this reduction In rates and increa sed
cost OF operation. he said. was avoided
only by heavy expenditures to obtain
Increased efficiency In train movement.
making II possible to haul more tons Of
freight per locomotive. THIS had re.
duced the average cost OF hauling q
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 ad.
vance NJ the present rate lot of rail.
roads will hc In the ha nls " receivers
by 1918, nulcSs smue relief il Afforded
Mr. KrullSchnitl Told the committee.
owing Ia the rise NJ commodity
rrtcS. he said THE pur baSlue Iower
~ the d"l'sl has fallcu ~ per zen, aud
The railr,md> ave IN The position of I've.
Wr runprll,i 10y law I" ,rt,!t ray.
rcui im tltrii srrvhr ~ tie plluic In
nrrrn. Ntn'a I; .cul> un llic dollar
Pubhe's ehe' interest.
Tie pNh" greatest Interest Is n
IrIrac ll1,u>lurIuI'ru fs,i ,ii,> AID
,"i - rn,h " tv mir> " iu m".t
omn, di'ir, ltrHg'u w'r, trm y very
small urulrrlmr ~ their ,o>l. EN
clluiiug lew grade ,umm,liir, The
perCcntagr ~ lhr fresh, rate IT, the
cost l. 81 >lshi H. iu'f' Y ~ mSiih a.
ton for any substantial increase IN
prices ~ the consumer II NAV I've
stated with little fear " contradiction
that the consumer seldom. II ever.
profits from y lowering " freight rates,
"EItcrionatc charges are a thing NJ
the past, and under the attempt 10 ~,
rates 10 their lowest poa'lh figure
the Interest Of the whole public In the
character and standard " tanspurta.
i'on Is subordinatcd to the Interest o'
that part Of the public only tina, pr,nts
by loxcr rates that is To say. the ship
pers and their agents ani nnl ;hr zen
era, puhlic. the ultimate consumer