The Mt. Sterling advocate. (Mt. Sterling, Ky.) 1890-current, 1917-06-05
AS PRICES RISE
HIGH COST or LIVING
HITS THE RAILROADS
Service VIII Be- Crippled Un-
less Relief Cones Soon.
EXPENSES UP, RATES DOWN

Wsstsfvi and Conflicting Regulations
Hamper Railroad Credit. While Ad-
vance In Labor and Materials Out
strips Revenues. Chairman Krutt-
sehnitt Tells Congress Committee.
Unified Federal Control Will Improve
Conditions
Washington. April 2--The condition
In which the railroads find themselves
as a 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 Kruttschnitt.
Chairman OF the Executive Committee
Of the Southern Pacific Company. In
bis testimony during the past few days
before the Joint Congressional Com
mittee on Interstate Commerce. which
Is making a study Of the question OF
railroad regulation. Mr. Kruttschnitt
urged the committee TO recommend
! plan Of regulation which viii 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 the waste
full and often conflicting policies in
! voived In the system OF combined state
and federal regulation.
Why Roads Need More Money.
Mr.. Kruttschnitts testimony also had
/ a bearing on the reasons for the appli-
| cation of the roads to the Interstate
| Commerce Commission for a 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 1864. 100000 more for trans
porta ton In 1915 than they did receive
This saving to the public was effect
ed. In spite Of an increase OF 50 per
cen. e the COST OF operation OF trains.
by a reduction In the average paSsen,
ger rate per mile from 2.04 cents In
/ 1895 to 1888 cents In 1915, a decrease
of per cent. and by reduction In the
average freight rate per ton mile from
$50 mills In 1895 to 7.3 mills in 1915, or
Is per cent. During the same period
the cost of operation per traiE mile
rose from 80 cents to SITS, almost
doubling. At the same time the aver
age price of 346 commodities enumer-
ated In 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
we're twenty years ago.
Big Saving to Public.
II rates had risen proportionately to
the increase in the cost Of other arti-
cles of ordinary use. Mr.. Kruttschnitt
told the committee, the average pas
senger rate in 1915 would have been
2.95 cents mile, or 80 per cent higher
than it was. and the average freight
rate would have been 1.2l cents, or 66
per cent higher than it was. The saw
ing to the public in passenger fares
through this difference was 1914 ,0O0,-
boo and in freight rates 81, 34O, 100000.
Universal railroad bankruptcy under
this reduction in rates and increased
cost Of operation, he said, was avoided
IN hu hna N ohf In.
increased efficiency in train movement,
making 1t possible to haul more tons Of
freight per locomotive. This had re-
duced the average cost of hauling a
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 adj
vance at the present rate a lot OF rail-
roads will be In the hands Of receivers
by 1918 unless some relief is afforded, |
Mr.. Rruttschnitt told the committee.
lowing to the rise Of commodity |
prices" he said. "the purchasing power /
OF the dollar has fallen IS per cent and
the IuhlOduS uEc III the pOSlllOu VI De- 1
ing compelled by law to accept pay
ment for their service to the public I'm
currency worth As cents on the dollar.
Publie's Chief Interest.
''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 Elk.
Guiding low grade commodities. the
percentage OF the freight rate to the
cost is so slight as to offer no justihca
ton for any substantial increase IL
prices to the consumer II may be
stated with little fear OF contradiction
that the consumer seldom. II ever.
profits from a lowering OF freight rates.
"Extortionate charges are a thing OF
the past. and under the attempt TO cut
rates 10 their lowest possible figure
the interest OF the whole public In the
character and STANDARD OF transporta.
ton Is suboTdlnated to the interest OF
that part OF the public only that profits
By lower rates-that Is 10 ssy, the ship
cara and their agents. and NOT fha ren