Lincoln County times. (Jerome, Idaho) 1911-1919, 1917-04-26
As PRICES RISE
HIGH COST OF LIVING
HITS THE RAILROADS
Service VIII Be Crippled Un-
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

Wasteful and Conflicting Regulations
Hamper Railroad Credit While Ad-
vance In Labor and Materials Out
strips Revenues. Chairman krutt-
schnitt Tells Congress Committee.
Unified Federal Control viii Improve
Conditions.
Washington. April 1.-The condition
in which the railroads mud themselves
as result OF constant increases In
wages. prices OF material. taxes and
other expenses. while their revenues
are restricted by legislation. was striS
lngly described by Julius krutts, hnitt.
Chairman OF the Executive COMMITTEES
Of the Southern Pacific Company. In
his testimony during the pSSt few days
before the Joint Congressional Com
mittee on Interstate Commerce. which
IS aking 4 study Of the question Q,
railroad regulation Mr. kru-tSc hui.i
urged the committee - rtNNo,rmsnt
plan OF regulation which vi. center
responsibility tor recu'stion .rt =
results in the feGerSi govern rrsrt- :,
that conditions affecting e'.h expenses
and revenues may x made suc. >ct =
uniform policy Instead - ~ waste
ful and often cons.ct.rs "a. .c.=> --
VOWED in the system .. c,-oi-st s,s;s
and fedora regulation
Why RosS, Nees Me- N--s,
Mr. hrutt> hnift's Testimony :, 50
4 bearing ID TIE rszse-s e. ~ srr-
-
Commerce Comui~ssor 20 sscs-s
dvsuce in freight rz.es tie se.ws-,
,hat while the prize . t-z-s-.,--z-.
has decline. II recent ysz-s 80 -
2 producing trsnSrCr-s;.oc. tSs ~
osi Of almost everything e,Se tss -zp
IDLY sdvanc~d Tbs - Illustrated ly
showing that II freight and V2sS=rse-
rates had incres sd during TIE pssi
~ entr years II tie sane Proportion a.
average commodity prizes the raiiroad~
y the United States would have r.
-eived 81 81 .o'o.,.-l more for trsns
1orration IL 1913 than they did receive
This saving to the puniic was effect
: In spite - sd increase u 80 Der
'ent II the cost Of operation Of trains
by g reduction In the average passen
ger rate per mile from 2s cents In
lS.'5 10 l.s- cents IN 1918. a decrease
" per cent. and by q reduction In the
Average freight rate per ton mile from
$50 mills 10 1898 TO 73 mills In 1915. OF
10 per cent. During the same period
the cost Of operation per train mile
rose from 92 cents to Sis. almost
doubling At the same time the aver
age price OF 346 commodities enumer
ated In a bulletin OF the Department Of
Agriculture Increased ll5 per cent
Transportation Is practically the only
com modity In general use that has not
lncrea sed 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 10
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-s5 cents mile. or 50 per cent higher
than II was. and the average freight
rate would have been l2l cents. or 90
ttA -tAt lIdD IL ne saw
ing to the public in passenger fares
through this difference was $4,000.
100 and in freight rates 81 $40, OOO. 900.
Universal railroad bankruptcy under
this reduction In rates and increa sed
cost OF operat ton. be saic, was avoided
only by heavy expenditures to obtain
increased efficiency In train movement.
ma king II 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. II the opera ting costs OF the
railroads, including the prices Of coal.
labor and material, continue to sd
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.. 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 10 accept pay.
ment for their service to the public ip
currency worth 45 cents on the dollar
Public's Chief Interest.
The public's greatest interest is 10
adequate transportation facilities and
not so much In low rates As to most
commodities freight rates form very
small proportion OF their cost. En-.
Guiding low grade commodities. the
percentage OF the freight rate to the
cost is so slight as to offer no justifca
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