The Morgan City daily review. (Morgan City, La.) 1916-1920, 1917-04-07
Service WIN 30 Crippled Un-
less Relief Comes Soon.
EXPENSES UP, RATES DOWN


In which the railroads find themselves
% q result Of constant increases in
wages, prices of material. taxes and
other expenses. while their revenues
are restricted by legislation, was strfk
ingly described by Julius Kruttschnitt
Chairman Of the Executive Committee
Of the Southern Pacific Company. Ii
bis testimony during the past few days
before the Joint Congressional Com
mittee on Interstate Commerce. which
Is making q study of the question Of
railroad regulation Mr.. Kruttschnit,
urged the committee to recommend q
plan Of regulation which will center
responsibility for regulation and Its
results in the federal government, SC
that conditions affecting both expenses
and revenues may be made subject tt
a uniform policy instead OF the waste
full and often conflicting policies In.
volved 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 appli'
cation of the roads to the Interstate
Commerce Commission for q 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 rs
average commodity prices the railroads
OF the United States would have re-
ceived $1,654. OO0. 900 more for trans:
portation in 1915 than they did receive.
This saving to the public was effect
ed, In spite Of an increase Of % per
cent in the cost Of operation Of trains.
By q reduction In the average passen-
ger rate per mile from 2.04 cents In
1895 to 1888 cents In 1915, 4 decrease
Of 3 Der cent, and by q reduction In the
average freight rate per ton mile from
$50 mills In 1895 to 10 mills in 1915. or
10 per cent. During the same period
the cost Of operation per train mile
rose from 02 cents to $l.78. almost
doubling. At the same time the aver
age price Of $40 commodities enumer-
ated In q bulletin Of the Department Of
Agriculture increased lis 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.
Bio Saving 70 Public.
II rates had risen prop0rtionately to
the increase In the cost Of other arti-
cles Of ordinary use. Mr.. Kruttschnitt
told the committee. the average pas
seneer rate in 1915 would have been
2.e6 cents a mile, or 80 per cent higher
than It was, and the average freight
rate would have been 1.2l cents. Of o6
per cent higher than It was. The saw
ing to the public IN passenger fares
through this difference was 1911. 600.
O0v and in freight rates 81 $40 900 900.
Universal railroad bankruptcy under
this reduction in rates and increased
cost Of operation, be said. was avoided
only By heavy expenditures to obtain
increased efficiency In train movement,
making Il possible to haul more tons &
freight per locomotive. This had ~
duced The average cost Of hauling .
ton Of freight, but the decline IN to
average freight rate had reduced the
net revenue Of the roads from each ten
hauled. II the operating costs Of The
railroads, including the prices Of coal.
labor and material. continue to ad-
vance at the present rate . lot Of rail-
roads will be In the hands Of receivers
b. 1913 unless some relief IL afforded.
Mr.. Kruttschnitt told the committee.
loving to the rise Of commodity
prices" he said. the purchasing power
Of the dollar has fallen IS per cent and
the railroads are I'm the position Of BE-
ing compelled by law to accept pay
ment for their service to the public n
currency worth Is cents on the dollar.
PuoJ0c'o Chtof Interest.
The public's greatest interest b IN
adequate transportation facilities and
not % much In low rates. Al to most
commodities freight rates form Z very
small proportion Of their cost. Hx-
Guiding low grade commodities, TIE
percentage Of the freight rite to tie
cost . % slight % to offer no justinca-
tion for any substantial increase =
prices to tho consumer. II may -
stated with little fear Of contradictin
that The consumer seldom. II evee.
profits from Z lowering Of freight Rates.
@Extortionate charges are q thing of
the past. and under the attempt to cut
rates 10 their lowest possible 0guEe
The interest Of The whole public IN IL
character and standard OF Transports
tion - subordinated 70 the interest q
that part Of The public only that peo1ls
b. lower rates-that h to say, the sh1p-
pkD and their agents and not tho gen.
eEal pgblie H. ultimate coosumsr."