Okolona messenger., 1917-04-12
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'
sehnitt Tells Congress Committee
Unified Federal Control Will Improve
Conditions.
Washington. April 2.-The condition
In which the railroads find t! o.nselves
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
his 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 a
plan Of regulation which will center
,, responsibility for regulation and its
results in the federal government, so
that conditions affecting both expenses
uAAN aN'ChuNH UC ShbIVNl W
, uniform policy instead of the waste
full and often conflicting policies in,
yolyed in the system Of combined state
and federal regulation.
Why Roads Need More Money.
Mr. Kruttschnitts testimony also had
bearing Oh 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 $1,654 100000 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 per
cent In the cost of operation of trains.
bysa reduction in the average passen-
ger rate per mile from 2.04 cents in
1895 to 1893 cents In 1915, decrease
of per cent. and by reduction in the
average freight rate per ton mile from
S.39 mills in 1895 to 73 mills In 1915, or
13 per cent. During the same period
the cost of operation per train mile
rose from 90 cents to $1.7S, almost
doubling. At the same time the aver
age price of 346 commodities enumer-
ated in a bulletin of the Department of
Agriculture increased 115 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
were twenty years ago.
Big Saving to Public.
If 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
295 cents mile or 80 per cent higher
than it was, and the average freight
rate would have been 1.21 cents or 66
per cent higher than it was The saw
ing to the public in passenger fares
through this difference was $314,000,-
300 and in freight rates 81 40,000,000.
Universal railroad bankruptcy under
his reduction in rates and increased
cost of operation, he said, was avoided
)nly by heavy expenditures to obtain
increased efficiency in train movement,
making it possible to haul more tons of
freight per locomotive. This had re-
luced 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
lauled. If the operating costs of the
ailroads, including the prices of coal,
abor and material continue to ad-
'ance at the present rate a lot of rail
Dads will be in the hands of receivers
y 1918 unless some relief is afforded.
DR.. Kruttschnitt told the committee.
lowing to the rise of commodity
rices," he said, 'the purchasing power
I the dollar has fallen 55 per cent and
be railroads are in the position Of be- Z
ng compelled by law to accept pay
1ent for their service to the public In
urrency worth 45 cents on the dollar
PubIic's Chief Interest. !
1.-The public's greatest interest is In
dequate transportation facilities and
OF so much in low rates. AS to most
ommodities freight rates form q very
mall proportion Of their cost. Ex-
luding low grade commodities, the
ercentage Of the freight rate to the
Dst is so slight as to offer no justinca-
on for any substantial increase In
rices to the consumer. 1t may be
lated with little fear Of contradiction
lat the consumer seldom, IL ever,
rofits from a lowering of freight rates.
"Extortionate charges are a thing Of
he past. and under the attempt to cut
ties to their lowest possible figure !,
lie interest of the whole public in the
and standard Of transporta-
on is subordinated to the interest Of
lat part OF the public only that profits
: lower rates-that is to say, the ship
-