Mount Vernon signal. (Mt. Vernon, Ky.) 18??-current, 1917-04-20
As PRICES RISE
HIGH COST OF LIVING
HITS THE RAILROADS
Service Will Be Crippled Un-
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

vance In Labor and Materials Out
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 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 study Of the question OF
railroad regulation Mr.. Kruttschnitt
urged the committee to recommend q
plan OF regulation which 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
a uniform policy instead Of tbE waste
full and often conflicting polities I'm
volved in the system Of combined state
and federal regulation.
Why Roaes 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 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 by
showing that II 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 1854 ,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 90 per
cent in the cost Of operation Of trains.
by a reduction I'm the average passen
ger rate per mile from 2O4 cents In
1895 to l.9S cents In 1915. a decrease
Of per cent. and by a reduction In the
average freight rate per ton mile from
S39 mills In 1895 to 7.3 mills In 1915. or
10 per cent. During the same period
the cost Of operation per train mile
rose from 81 cents to $1.7S. almost
doubling. At the same time the aver
age price of 346 commodities enumer
ated in bulletin Of the Department OF
Agriculture increased 115 per cent
Transportation is practically the only
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 of other arti- |
les of ordinary use. Mr.. Kruttschnitt |
eold the committee, the average pas
jenger rate in 1915 would have been
2.95 cents mile, or so per cent higher
than il was, and the average freight
rate would have been l.21 cents. or I'll
per cent higher than it was. The saw
ug to the public in passenger fares
through this difference was $4,000.
MOO and in freight rates 81 ,34O, 100000.
Universal railroad bankruptcy under
his reduction in rates and increased
cost of operation he said, was avoided
)nly by heavy expenditures to obtain
fsofA
making it possible to haul more tons of
freight per locomotive. This had re
iuced the average cost of hauling a
on OF freight. but the decline in the
lverage freight rate had reduced the
let revenue of the roads from each ton
,auled. If the operating costs of the
ailrOads, including the prices of coal.
abOr and material. continue to ad
'ance at the present rate lot Of rail
Dads will be In the hands Of receivers
y 1918 unless some relief Is afforded
Dir. Kruttschnitt told the committee.
Owing to the rise OF commodit,
rices. he said. the purchasing power
T the dollar has fallen ~ per cent and
he railroads are in TIN. position OF be
lg compelled by law {" accept pay
lent for their service To the publis. IN
worth * cents on the dollar
PubIic's Chief Interest.
THE public's greatest interest is I'm
dequate transportation facilities and
OF so much In low rates AS to most
freight rates form a yer,
mall proportion of their cost. Elk i
uding low grade commodities. tn.
ercentage Of the freight rate to tho
Dst is SO slight as to offer no justifica .
on for any substantial increase IN
rices to the consumer. Ii may be-
ated with little fear Of contradiction
nat the consumer seldom. If ever.
rofits from lowering OF freight rates.
"ExtOrtiOnate charges are thing OF I
he past. and under the attempt to cut :
ties to their lowest possible figure
he interest Of the whole public In the
laracter and standard Of transporta '
OH Is subOrdinated to the interest O. ! r
lat part OF the public only that profit.
= lower rates that Is to say, the ship q
ers and their agents and not the gen "
al public. the ultimate consumer"