The Ordway new era., 1917-04-20
|!Es RISE
lost OF LIVING
THE RAILROADS
KIM WIN Be Crippled Un-
l0ss Relief Comes Soon.
EXPENSES UP, RATES DOWN

Hhpspor Railroad Credit, While Ad-
v9pss In Labor and Materials Out
s1ttpe Revenues, Chairman krutt-
eeiNit< Tells Congress Committee.
United Federal Control Will Improve
0snditions.
Warrington. April 2.-The condition
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 strik
ingly described by Julius Kruttschnitt,
Chairman Of the Executive Committee
Of the Southern Pacific Company. In
bis testimony during the past few days
before the Joint Congressional Com
mittee on Interstate Commerce. which
II making 9 study Of the question OF
railroad regulation. Mr.. Kruttschnitt
urged the committee to recommend
plan Of regulation which will center
responsibility for regulation and its
results In the federal government. 80
that condition. affecting both expenses
and revenues may be made subject t"
q uniform policy nstend Of the waste
ful and often. conflicting policies in
voived In the system Of combined state
and federal regulation.
Why Reads Need More Money.
Mr. Kruttschnitts testimony ais" had
Q bearing Oh the reasons for the appli
cation Of the roads to the Interstate
Commerce Commission for genera
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 n freight and passenger
rates had increased during the past
twenty years in the san pr"p"rtion hs
average commodity prices the rnilrond>
Of the United States would have re
ceived 81 ti,4 .OO.Uu more for trrns
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 8 reduGtioD In the average passen
ger rate per mile from 2.4 cents in
1895 to l.90 cents In l9l5. II decrease
OFFS per cent, and by n reduction in the
average freight rate per ton mile from
$50 mills In 1870 to IL mills in 1913. ~
IS per cent. During the same period
the cost of operation per train mile
ruae from B2 rents to SI.7S. almost
!, doubling. At the same time the aver.
age price OF 346 u,mIn"dities ennmer-
ated In bulletin of the Department Of
Agriculture Increased ll5 per cent.
Transportation is practically the only
commodity In general use that has not
Increased tremendously In price during
the psixt twenty years freight and pas
spiiger charges being lower than they
were twenty years ago.
Nd Saving to Public.
lf ratee had risen proportionately to
the iiscreHse n the cost of other nrti
cles Of 0rdfnafy use. Mr.. Kruttschnitt
told the connfttee. the average pas
.p,iger ratsc1 IN 1915 would have been
2..'5 cent? Z n1ile, or 80 per cent higher
than 1t was. ana the average freight
rate would havA been l.2l cents. or 6G
,,er cent higher than 1t was. The saw
ing to the public in passenger fares
through this difference was $314, 900.
90 and In freight rates 81 $40, ,OOO,OOO.
Universal railroad bankruptcy under
this reduction In rates and increased
cost OF operation. he said, was avoided
only By heavy expenditures to obtain
Increased efficiency in train movement.
mAktnt II possible to haul more tons OF
ffeixht per locomotive This had re
I iuced the average cost of hauling u
4 Ion q freight. but the decline In the
y nvera9s freight rate had reduced the
as.ss<H - Tho rOada from oh ton
n ri ul1d II the operating costs of the
9Ils61ds, Including the prices Of coal,
x and material, continue to ad-
S ~ At ~ present rate lot of rail
NJ l1 ~ IN the hands of receivers
IA f9hless some relief is afforded.
n 6cbnitt told the committee.
Sl6 the rise Of commodity
X. 49, 1Ald. "the purchasing power
XIX has fallen IS per cent and
ssf6e are in the position Of be-
\ ing by law to accept pay
inel b service to the public in
4 surl a As cents on the dollar,
II = chisf Interest.
Il 1s - b greatest interest II in
n ljilaeqaet< Hportation facilities and
N mi ~ mt( ~ low rates. As to most
NSnlh0 seight rates form a very
m pe6t6v410n Of their cost. Tx
y ~ grade commodities, the
~ the freight rate to the
I6ht as to offer no justinca-
~ substantial increase In
- consumer. It may be
1ittle fear Of contradiction
psumer seldom. II ever.
lowering Of freight rates.
te charges are thing of
under the attempt to cut
n lowest possible figure