The Prescott daily news., 1917-04-20
AS PRICES RISE
 HIGH COST OF LIVING
 HITS THE RAILROADS
Service Will Ba Crippled Un- less Relief Comes Soon.

'~SS 'aS'sst VVHtVV OuVts
 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 lngly 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 study of the question of railroad regulation MT. Kruttschnitt urged the committee to recommend n plan of regulation which will center responsibility for regulation and it's results in the federal government. sd that conditions affecting both expenses and revenues may be made subject tG a uniform policy instead of the waste. ful and often conflicting policies in yolYed in the system of combined state and federal regulation.
 Why Roads Need More Money.
 Mir kruttSchnitts testimony also had a bearing on the reasons for the appli- cation of the roads to the Interstate Commerce Commission for general advance In freight rates He showed that while the price of transportation hds declined iii recent years. the cost of producing transportation, like the cost of almost everything else, has rap. idly advanced. This he illustrated by showing that if 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, by a reduction in the average passen ger rate per mile from 204 cents fin 1895 to 1.0S cents in 1915, a decrease of 3 per cent. and by reduction in the average freight rate per ton mile from S.30 mills in 1895 to 7.3 mills in 1915, or l3 per cent. During the same period the cost of operation per train mile rose from 92 cents to SITS. almost doubling Al the same time the aver age price Of 346 commodities enumer. ated in a bulletin of the Department of Agriculture increased 113 per cent Transportation is practically the only commodity in general use that has moi 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, Mir. KruttsChnitt told the committee, the average pas. Scnger rate in 1915 would have been 2.95 cents mile, or 90 per cent higher than it was. and the average freight rate would have been 121 cents. or G6 per cent higher than it was The say ing to the public in passenger fares through this difference was S314.000- GOO and in freight rates $1,340,0 900
 Universal railroad bankruptcy under this reduction in rates and increased cost of operation, he said, was avoided only by heavy expenditures to obtain ncrcaS Sed efficiency in train movement making it possible to haul more tons of freight per locomotive. This had re duCed the average cost of hauling ton of freight, but the decline in the average freight rate had reduced the net revenue of the roads from each ton hauled. If the operating costs of the railroads, including the prices of coal, labor and material, continue to ad- vance at the present rate a lot of rail roads will be in the hands of receivers by 1918 unless some relief is afforded, Mir. Kruttschntt told the committee
 Owing to the rise of commodity prices" he said, the purchasing power of the dollar has fallen 55 per cent and the railroads are In the position of be- ing compelled by law to accept pay ment for their service to the public fin currency worth A cents on the dollar
 PubIics Chief Interest.
 ''rhe public's greatest interest is in adequate transportation facilities and not so much in low rates. As to most .I tt f.Ae