The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1917-04-13
AS PRICES RISE
HIGH COST OF LIVING
HITS THE RAILROADS
Service VIII 30 Crippled Un-
less Relief Comes Soon.
EXPENSES UP, RATES DOWN

Wastefui and Conflicting Regulations
Hamper Railroad Credit, While Ad-
vance In Labor and Materials Out
strips Revenue. Chairman krutt.
schnitt Tells Congress Committee.
Unified Federal Control Will improve
Conditions
Washington, April 2-The condition
in which the railroads find themselves
as a 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
his testimony during the past few days
before the Joint Congressional Com
mittee on Interstate Commerce, which
is making a study of the question of
railroad regulation Mr. Kruttschnitt
urged the committee to recommend a
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 to
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.
MIR KruttSchnitt's testimony also had
bea ring on the reasons for the appli
cation of the roads to the Interstate
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. 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 $l,654. 100000 more for trans
portation in 1915 than they did receive
This saving to the public was effect
ed. in spite of an Increase of 93 pei
cent in the cost of operation of trains.
by reduction In the average passen
ger rate per mile from 2.O4 cents in
1895 to l.9S cents in 1915. a decrease
of 3 per cent and by reduction In the
average freight rate per ton mile from
$50 mills in 1898 to 73 mills In 1915, or
10 per cent During the same period
the cost of operation per train mile
rose from 81 cents to Sl.1S. almost
doubling AT the same time the aver
age price of 346 commodities enumer-
ated in a bulletin of the Department of
Agriculture increased 115 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.
If 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 1918 would have been
29J cents a mile. or 80 per cent higher
than it was, and the average freight
rate would have been LII cents. or &C
per cent higher than it was. The say.
ing to the public in passenger fares
through this difference was $4,000,
900 and in freight rates 81 $40, 100000.
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.
making it 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 If 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
by 1918 unless some relief is afforded
Mr.. Kruttschnitt told the committee
Owing to the rise of commodity
prices" be said, the purchasing power
OF the dollar has fallen So 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 As cents on the dollar.
Pubie's Chief Interest.
The public's greatest interest is in
adequate transportation facilities and
not so much in low rates. AS 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 justifica
ton for any substantial increase In
prices to the consumer. II may be
stated with little fear OF contradiction
that the consumer seldom. if ever
profits from lowering of freight rates
"Extortionate charges are a 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