Evening journal., 1919-07-26

reacned a very nigh leNel, but uue 10
the high cost and scarcity OF labor, and
the unusual increase In tho cost Of
materials, The depreciation Of. the ply
steal properties continued
AT the close Of the fiscal year 1914
there were in service on Glass I and II
railroads 2.325,6i7 freight cars. on that
/ number $4,000 cars were Of the capa-
city OF 60O0O pounds. or under, and
were practically all Of wood construo-
tlon. n 10 had not been for the meagre
earnings Of the railroads In the period
from 1907 10 1914 and the loss Of ohedit
/ due 10 the impoverished condition,
probably all Of those cars would have
been renewed with modern cars With
In that time. As the rsllroadd disablli-
ties extended 10 1917. II Is fair TO as
sumo that very little was done In the
replacement Of those cars up 10 the time
the government took over the proper
ties Those wooden cars were uneco-
nomic. being deficient both In carrying
and cubic capacity too weak 10 meet
the strain when interpersed with cars
Of modern construction. and further
loss Of efficiency was suffered In the
time consumed In making frequent and
extensive repairs. The pre-war cost Of
maintaining those inefficient cars aver
aged about $40 per annum, as against
$50 per snnum for modern steel UNDER
frame or all-steel cars. 10 ls safe 10 say
that all these $4,000 cars, except those
that were no longer nc TO run. are still
IN service. and that their war cost Of
maintenance Is In the nelghborhood OF
1900 per annum.
There was a deficiency Of sii6Oo0.-
600 In car replacement In the period
from 1908 TO 1914. inclusive. AZ the
prices current In the year 1915, those
cars would have been replaced now at
cost OF sS37,0O0.OO0. AZ current prices
the cost would now be s2,ii5.600O0
"An expert estimate was made IN 1913
OF the depreciation Of permanent way.
bridges. buildings, etc, and the con
clusion was reached that the deprecia-
tlon had been up to that time S2OoO
per mile Of main line As that condi-
tlon has not been improved since then,
10 Is n safe assumption that 10 viii re-
quire $4,000 per mile OF main line 10
bring the railroad structure up 10 the
required status at this time, or $780,
100000 on the basis Of pre-war cost. !
Assuming the present cost the amount
would be double or 81 560,O0000O.
Notwithstanding the increase Of
twenty-five per cent in freight rates
and approximately fifty per cent I'm /
passenger rates. ordered by the rail- |
road administration. effective June p.
1918. there Is a deficit 10 the govern /
ment under its guarantee, up 20 and /
May OF this year. amounting /
10 si5i 10000 It is thus evident that |
there must be another increase In rates
and the public can not have much hope /
Of any reduction in these rates until
he depreciation OF the physical proper
lies which has occurred in the past
thirteen years has been made good. The
experience Of the past few years has
convinced the public that the
greatest ess ntlal to the prosperity Of
he country is an efficient transpOrta-
ion system, and there Is no way Of Sc
'uring Il except by placing railway
ariffs upon a level that Will afford the
means OF attaining the desired end and
turning the properties over to their
owners for efficient and competitive
management with such governmental
encouragement as will in
sure the peak Of service and prevent
he exploitation OF either the public or
he stockholders.