The Meridian times. (Meridian, Idaho) 1909-1938, 1917-05-04
HIGH COST OF LIVING
HITS THE RAILROADS
Service VIII 30 Crippled I'm
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

sehnitt Tells Congress COMMITTEES. |
Unified Federal Control Will Inprovs
Conditions.
Washington. April 2.-The condition
In which the railroads find themselves
as result OF constant increases IN
wages. prices OF mbteriaI. taxes aid
other expenses. white their revenues
are restricted by legislation, was strik
ingly described by julius krutfs hnitt
Chairman OF the Executive COMMITTEES
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. Dir. kruttsehnitt
urged the committee to recommend
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 10
q uniform policy instead OF the waste
ful and often conflicting policies in
volyed in the system OF combined state
and federal regulation.
Why Roads Need More Money.
Mr.. Kruttschnitt's testimony also had
q bearing ON the reasons for the apph-
cation Of the roads TO the Interstats
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, Ike the
cost OF almost everything else, has rap
idly advanced. This he illustrated by
showing that IL 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-
ceiyed S1,654, 100000 more for trans
portation In 1918 than they did receive
This saving to the public was effect
ed. In spite OF an increase OF 80 per
cent In the cost OF operation OF trains.
by a reduction In the average passen.
ger rate per mile from 2.04 cents In
1885. 10 LOS cent? In l9l5s4a decrease
OF 8 Der cent, aud by a reduction In the
average freight rate per ton mile from
s.29 mills In 1898 to 7.3 mills ia 1915. or
Is per cent. During the same period
the cost OF operation per train mile
rose from 90 cents TO $1.IS, almost
doubling. At the same time the aver
age price OF $40 commodities enumef-
ated in a bulletin OF the Department OF
Agriculture increased lis per cent.
TRANSPORTATION Is practically the only
commodity in general use that has not
increased tremendously ia price during
the past twenty years. freight and pas
senger charges being lower than they
were twenty years ago.
His Saving to Public.
IL rates had risen proportionately 70
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 a mile. or so per cent higher
than il was, and the average freight
rate would have been l.2l cents, or To
per cent higher than il was. The saw
ing to the public in passenger fares
through this difference was $3l4.00O.-
900 and In freight rates Sl,34U.OOO,Oo0
Universal railroad bankruptcy under
this reduction in rates and Increased
cost OF operation, he said, was avoided
only by heavy expenditures to obtain
increase efficiency in train movement,
making 1t possible to haul more tons or
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. II the operating costs OF the
railroads, including the prices OF coal,
labor and material, continue to adj
vance at the present rate q LOT OF rail-
roads will be In the hands OF receivers
by 1918 unless some relief IL AFFORDED,
Mr.. Kruttschnitt told the committee.
Owing to the rise of commodity
prices" he said, "the purchasing power
OF the dollar has fallen IS 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 In
currency worth 45 cents on the dollar.
Public's Chief interest.
THE public's greatest interest IL In
adequate transportation facilities and
not so much In low rates. Az to most
commodities freight rates form very
small proportion of their cost. Ex.
Guiding low grade commodities. the
percentage OF the freight rate to the
cost Is so slight as to offer no jusinca-
ton for any substantial increase In
prices to the consumer. Ii may be
stated with little fear OF contradiction
that the consumer seldom, II ever,
profits from lowering OF freight rates.
"Extortionate charges are q thing Of
the past. and under the attempt to cut
rates to their lowest possible figure
the interest of the whole public in the
character and standard OF transporta.
ton Is subordinated to the interest OF
that part OF the public only that profits
by lower rates-that Is to say, the ship
ners and their agents and not the gen
eral public. the ultimate consumer"