The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-10-12
HIGH PRICES HIT
RAILWAY income
HEAVY ADVANCE IN COSTS OF
EQUIPMENT AND MATERIALS
USED BY RAILWAYS
HIGH COST OF RAILROADING
Writer in Railway Age Shows How
. the Roads Have Suffered From
High Prices

"The public knows that the prices
of almost all the things it buys have
advanced greatly within recent years"
says the Railway Age. 'It apparently
does not realize that the prices OF
most of the things that enter into the
cost of living Of the railways have
increased much more in proportion
than the prices of commodities in gen.
eral, but this is a fact, and it is lie
principal reason why such large ad-
Vances in rates are necessary. The
public knows pretty we'll how much
the railroad payroll has been increas.
ed. Here are a few Illustrations OF
typical increases in the prices of
things that railways have to buy:
"a locomotive which in 1914 cost
s27,S7e will now cost s75,750, an in
crease of III per cent. In 1914 a rail
way had to pay only about per cent.
interest on the money it invested in
a locomotive, while now it must pay
about Z 1-2 per cent. Therefore, its
interest charges on a locomotive
bought six years ago were S1,S54 a
year, while on locomotive bought
now they will be about S5,681 year,
an increase in fixed charges of SIC per
cent.
IAN average box car boug ght in 1914
cost about $1,000, while now it would
cost about $4,000, an increase of zoe
per cent. The interest on the invest.
ment in the car in 1914 would have
been about $50 year, while now it
would be about s225 a year, an in
crease of $50 per cent
'The foregoing statistics illustrate
the advances which have occurred in
the prices of equipment and in the in
terest that must be paid on the in
vestment in it. The increases in the
cost of constructing track and bridges
have not been 50 great but they have
been very large:
"In 1915 80 foot through girder
bridge could be bought and installed
not including masonry-fOr $6,427.
It would cost now $15,117, an, increase
of 135 per cent. These figures are
based upon records of the actual eX.
penditures of "a certain road. In 1915
this road paid s12,55O per 'mile 70.
merely the rail track fastenings, ties
and ballast used in the construction
Of q new main track. The same ma
terials would now cost $26,235, an in
crease Of 10 per cent. For like
classes of materials used in building
mile of side track, including two
main track turnouts, this read in 1915.
paid $500. The same materials
would now cost s16,9O4, an increase
of 9S per cent.
"One important cause cf the in
crease in railway expenses is the ad-
vance in the prices of all commodi-
ties ard therefore in the amounts that
the railways have to pay for loss and
damage to freight:
"a certain railway recently was
presented claim for s4,511 for the
loss of carload of beef. The high
value OF beef was, of COURSE principal
ly due to the increases in prices With
in recent years. The freight earnings
from the shipment were S1i3.40.
Therefore, if the railway has to pay
the entire claim it will take the rev.
enue from forty similar carloads Of
freight-an entire trainload.
"There is hardly a branch Of rail
road operation in which unit costs
have not increased 100 to 900 per cent.
within the last five years.