The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1919-08-01
HIGHER FREIGHT RATES INEV-
TABLE

Washington, July S1-That further
increases in freight rates will be
necessary in order to enable the rail
roads of the country to restore their
former equipment, is the opinion eX-
pressed by the Republican Publicity
Association, in a statement given out
today thru the president of that or
ganization, Hon. Jonathan Bourne, Jr.
The statement says:
"From facts already developed IN
the study of the problem of reestab-
lishment of our transportation sys-
TENS under private management, it is
clearly evident that the people OF
America must make up in one form or
another the depreciation in railroad
equipment suffered in the past few
years because of inadequate railroad
revenue. Upon an efficient transpor-
tation system the prosperity OF every
other industry and enterprise de-
pends The short-sighted and unbus-
mess like policy of railroad regula-
ton bv one federal and 48 state regu-
latorv bodies resulted in what has
been appropriately called starvation
of the roads-a condition that must
be corrected by adoption of CON
structive, unified supervision.
"The present condition of the trans
portation facilities may be better UNI
derstood if we review briefly the
changes that have taken place in the
past few years.
The great prosperity of the rail
roads was between the fiscal years
ending in June, 1898, and June 1907.
During this period the railroads
showed continuous increases in their
gross revenues year by year, and, as
result of that prosperity, the phys
zeal condition of the railroad proper
ties was raised to the highest peak.
'In the autumn of 1907 the panic
occurred, and from July l, 1907, the
beginning of the fiscal year 1908, the
financial and physical conditions
showed, with two exceptions, contin-
uous depreciation up to the time the
railroads were taken over by the
government at the close of the calen-
dar year 1917. Between 1908 and
1914 twenty-eight major railway cor
porations and over fifty minor cor
porations went into bankruptcy.
During the period above stated
the railways had only two prosperous
years, viz: the fiscal year 1910, dur
ing which there was quick recovery
from the paralysis which followed the
panic of 1907, and again in 1913, fol-
lowing year of banner crops in
practically all lines of agriculture.
During those years the railroads were
fully maintained and probably some
Gain was made, but the fiscal years
1911, ~, IA, rs and '16 were all
lean years, and in order that the
roads might meet their interest and
dividend obligations, expenses were
reduced beyond a safe limit and the
properties deprecated.
GIN the year 1917 railroad revenues
reached a very high level, but due to
the high cost and scarcity of rabol,
and the unusual increase in the cost
of materials, the depreciation of the
physical properties continued.
"At the close of the fiscal year 1914
there were in service on Class l and
IL railroads 2,325,647 freight cars. OF
that number 847,000 cars were of the
capacity of $4,000 pounds, or under,
and were practically all of wood con-
struction. If it had not been for the
meagre earnings of the railroads In
the period from 1907 to 1914 and
the loss of credit due to their inn
poverished condition, probably all OF
those cars would have been renewed
with modern cars within that time,
AS the railroad disabilities extended
to 1917, it is fair to assume that very
little was done in the replacement OF
those cars up W Tile tlliic biiS SO'Ni''
ment took over the properties. Those
wooden cars were uneconomic, beng
deficient both in carrying and cubic
capacity, too weak to meet the strain
when interspersed with cars of mod
ern construction, and further loss of
efficiency was suffered in the time
consumed in making frequent and eX-
tensive repairs The pre-war cost oil
maintaining those inefficient cars aV-
eraged about $3.50 per annum, as
against $50 per annum for modern
steel under-frame or all-steel cars.
1t is safe to say that all of those
$4,000 cars, except those that are no
longer fit to run, are still in service
and that their war cost of mainten-
ance is in the neighborhood of $500
per annum.
"There was a deficiency of S446,-
100000 in car replacement in the
period from 1908 to 1914, inclusive.
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