The Era-leader., 1917-04-12
As PRICES RISE
NIGH COST OF LIVING
HITS the RAILROADS
Service VIII DO Crippled On-
less Relief Comes Soon.
EXPENSES Up, RATES DOWN

EkrERSEO UT, HAlLo uo""
Wasteful and Conflicting Regulations
Hamper Railroad Credit, While Ad'
vance In Labor and Materials Out
strips Revenues, Chairman Rrut'-
schnitt Tells Congress Committed
Unified Federal Control Will Improve
Conditions.
Washington, April 2.-The condition
In which the railroads find themselves
as a result of constant increases III
wages, prices of material, taxes ana
other expenses, while their revenues
are restricted by legislation, was StFlh-
ingly described by julius krutts'iilI'I
! Chairman of the Executive ComhN''Pe
of the Southern Pacific Company, i'll
| his testimony during the past few u"SS
before the Joint Congressional COM
mittee on Interstate Commerce. WHICH
is making study Of the question Oh
railroad regulation. Mr.. kruttschllltI
urged the committee to recommend
nlan of regulation which will center
responsibility for regulation ana lts
results in the federal government 50
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
yolved in the system of combined state
and federal regulation.
Why Roads Need More Money.
Mr.. Kruttschnitts testimony also had
a bearing Oh the reasons for the appn-
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 D!
showing that if freight and passenger
rates had increased during the pas1
twenty years in the same proportion az
average commodity prices the railroads
of the United States would nave re
ceiyed S1.654,OOO,OOO 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 Pc
cent In the cost of operation of trains
t by reduction in the average passen
!, ger rate per mile from 2.04 cents Il
1895 to 1.9S cents in 1915, decreas
of per cent and by reduction in tn
v average freight rate per ton mile iron
=. S39 mills in 1895 to rs mills in 1915, o
13 per cent. During the same perlo
y the cost of operation per train mil
= rose from o. cents to SITS, almos
doubling, At the same time the ave.
age price of 34G commodities enume
Il ated In bulletin of the Department
Ie Agriculture increased 115 per cen
o Transportation IS practically the onl
commodity in general use that has NJ
= increased tremendously in price durm
d the past twenty years, freight and pa
senger charges being lower than the
were twenty years ago.
- Big Saving to Public.
Il If rates had risen proportionately
the increase in the cost Of other art
cles of ordinary use, Mr.. kruttschnl
told the comm ttee, the average pa
Vi senger rate in 1915 would have be-
a 295 cents a mile, or 80 per cent high
~ than it was, and the average freig
rate would have been 1.21 cents, or
ly per cent higher than it was. The sa
ing to the public in passenger far
through this difference was $314,OO
600 and in freight rates $1340, 100000
Universal railroad bankruptcy und
this reduction in rates and lncre2s
cost of operation, he said, was avoid
' only by heavy expenditures to obta
'e. increased efficiency in train moyeme
making it possible to haul more tons
OF freight per locomotive. This had
duced the average cost OF hauling
ton of freight, but the decline in
average freight rate had reduced
net revenue of the roads from each
II hauled. If the operating costs OF
'lal railroads, including the prices Of co
TO labor and material, continue to
ary vance at the present rate lot OF re
at roads will be in the hands Of receive
est by 1913 unless some relief is afford
Mr.. kruttschnitt told the committee
"Owing to the rise Of cOmm0d
prices" he said, "the purchasing pow
the Of the dollar has fallen So per cent a
ma, the railroads are in the position of
,d;- ing compelled by law to accept p
bod ment for their service to the public
.~ currency worth 45 cents on the dol
PubIic's Chief Interest.
.a "The publics greatest interest is
adequate transportation facilities {
''i not so much in low rates. AS to n
lso' commodities freight rates form V
small proportion Of their cost
Iffu low, crn6n 1jtinc