Ottumwa semi-weekly courier. [volume] (Ottumwa, Iowa) 1916-1918, 1917-05-15
FREIGHT RATE INCREASES.

In these days of 50 wheat, 81 pota-
toes, and higher figures generally on
the cost of living and of dying. the an
nouncement of a new increase finds
the public mind so numbed by former
jnrOads on the pocketbook that there
is no longer any of that display of fll-
tile indignation which greeted the
first tentative advances.
Line after line Of business has in
creased its unit of revenue to keep
pace with the growing expense which
other lines infiict. Now come the rail.
roads of the country. with their sched-
ule of proposed increases in freight
rates amounting to Is per cent.
They cannot boost their price, mere
~ BY issuing new tariff sheets. but
must submit their claims to the inter-
state commerce commission for rul-
ing on interstate charges and to the
various state railway commissions for
similar rulings on interstate rates.
The hearing which began in Wash.
ington before the national commission
is 10 be followed by other hearings in
all the states. including Iowa.
The railroad officials say they can
not continue to maintain their systems
and keen trains running without re-
sulting loss Of money unless the In
crease in rates is permitted. A dozen
or more Of them visited Ottumwa yes
ferday to say so. and brought volumes
of statistics to support their asser-
tons.
Some of these figures are interest
ing. They afford comparison OF the
cost of various materials which are
used in building and operating rail
roads, showing the increases the mar
ket has recorded in the past two
years.
In 1915. for example. nails were cost
ing $3.50 hundredweight. In 1916
they rose 10 $2.19 and this year they
cost 1929. Car aXles advanced from
s1.:33 a hundredweight in 1915 to $40
in 1916 and to $50 this year. Freight
car couplers were SIT in 1915 and last
year. but now they cost $32 Glass J
locomotives jumped from s21.777
apiece in 1915 to $29.S07 in 1916 and
now they are being manufactured for
SAT. $50. Steel rails were obtainable
at $40 a ton year and two years ago:
they figure at $40 now. Other articles
show similar advances.
Meanwhile. wages of employees have
increased. and the net result OF the
many advances, the railroad represen-
tatiyes say. is indicated by the fact
that last year. when new high records
we're established by the operating rev.
,enues of the American roads. the COM
NAMES realized profit OF less than s
per cent.
That was on the basis of the 1916
schedules Of expense. This year
there are increases on practically all
the cost items, and the stockholders
in the carrying concerns face loss.
they say, unless the unit charges
which determine their revenues can be
advanced.
The shippers opposing the rate in
creases on interstate shipments will
be heard in Washington when the
railroad executives finish presenting
their case. The hearing before the
Iowa railroad commission. no doubt.
will follow the same lines and develop
the same statements on both sides.
The arguments of the railroads are
reviewed here so the ultimate con-
sumner may know where his money
goes when he is asked to pay higher
freight charges than has been the GUS
tom. The request of the carriers seems
to be in direct line with the arbitrary
increases that have been made by 9th.
er businesses, which are not deferred
INV Governmental restrictions.