The Benson signal., 1917-04-14
As PRICES RISE
HIGH COST OF LIVING
HITS THE RAILROADS
Service viii Be Crippled I'm
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

Wastefui ard Conflicting Regulations
Hamper Railroad Credit. While Ad-
vance In Labor and Materials Out
strips Revenues, Chairman krutt-
schnitt Tells Congress Committee.
unifie Federal Control VIII Improve
Conditions.
Washington. April 2.-The condition
in which the railroads find themselves
as result Of constant increases in
wages. prices of material. taxes and
other expenses. while their revenues
are restricted by legislation. was strik
ingly described by julius Kruttsehnitt.
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. Mr.. Kruttscfntt
urged the committee to recommend a
plan Of regulation which will center
| responsibility for regulation and It's
results in the federal government so
that conditions affecting both expenses
and revenues may be made subject to
uniform policy instead OF the waste
fu and often conflicting policies ~
vulved in the system Of combined state
and federal regulation.
Why Roads Need More Money
| Mr. krutts.'hnitts testimony also had
bearing on the reasons for thu appl-
cation Of the reads TO the Interstate
| Commerce Commission for a general
advance in freight rates. He showed
I that while the price of transportation
| has declined in recent years, tie cost
Of producing transportution 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 $1654 .OoO.OOO more for trans
! portation in 1915 than they did receive
This saving to the public was effect
ed, in spite OF All increase Of So per
/ cent in the cost of operation OF trains
! BY a reduction in the average paSsen
ger rate per mile from 2.UG cents i'll
| 1898 to 1.9S cents in 1919. decrease
1 Of 3 per cent and by reduction in the
! average freight rate per tom mile from
,S.39 mills in 1898 to 7.3 mills in 1918. or
,3 per cent During the same period
| the cost Of operation per train mile
! rose from ~ cents to $l7S, almost
! doubling At the same time the aver
! age price of 346 commodities enumer-
ated III bulletin Of the Department of
Agriculture increased l15 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.
IL 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 1919 would have been
! 30! cents u mile or 50 per cent higher
/ than it waN. and the average freight
rate would haze been l.21 cents. or Gb
/ per cent higher than it was. The saw
| ing to the public in passenger fl res
! through this difference was 1914. 900
900 ana in freight rates S1.34O ,OOO, 900.
( Universal railroad bankruptcy under
thia reduction in rates and increased
cost of operation, he said, was avoided
/ ,nly by heavy expenditures to obtain
increased efficiency in train movement.
making ii possible to haul more tons of
! freight per locomotive. This had re-
J lucpd the average cost of hauling a
! ton ot freight. but the decline in the
average freight rate had reduced the
net revenue Of the roads from each ton
hau!ehI II fine operating costs Of the
4 ,Alr0aGS, including the prices of coal
! labor and material. continue to al
! vance ut the present rate a lot OF rail
! roads will he in the hands of receivers
! by 1918 unless some relief is afforded
/ Mr Krlttst.hnitt told the committee
, Owing ITO the rise OF commodity
riceS. he said. 'the purchasing puweI
| IT the tlnllHr has fallen ~ per cent and
he railroads are in the position OK he
! ing compelled 10y law to ACCEPT pay
nlent tor their Servire to the public in
urrenry worth ~ ent> on the dollar
Pubiic's Chiet Interest.
! The puhlir'S greatest interest is IN
adequate transportation facilities III"
not ST. much in low rates AS t. mos
! commodities freight rateS form vel
! small proportion of their cost E,N
! Guiding tow grade commodities IN
! percentage of the freight rate to III
| roSt is so slight us to offer no juStifi
fou FOR any substantial increase il
prices 10 the consumer 1t may be
stated with little fear Of contradictions
hat the consumer seldom If nva
rrOtits from 4 lowering Of freight rates
"EXtOrtionate charges are thing y:
the past and under the attempt to III
rates 70 their lowest possible ncIir,
the interest Of the whole public in tht