The Leader, enterprise and press. (Fitzgerald, Ga.) 1915-1921, 1920-10-08
HIGH PRICES HIT
! RAILWAY INCOME
HEAVY ADVANCE IN COSTS OF
EQUIPMENT AND MATERIALS
USED BY RAILWAYS
HIGH COST OF RAiLROADlNG
Writer in Railway Age Shows How
the Roads Have Suffered From
High Prices

The public knows that the prices
pf almost all the things it buys have
advanced greatly within recent years."
says the Railway Age at 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 fact, and it is the
principal reason why such large ad-
Vances in rates are necessary. The
public knows pretty well how much
the railroad payroll has been increas.
3D. 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.S76 will now cost $75,75O, 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 IL per cent Therefore. it's
interest charges on locomotive
bought six years ago were 1884 a
year, while on a locomotive bought
now they will be about 1851 a year,
an increase in fixed charges of $40 per
cent.
An average box car bought 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 a year, while now il
would be about 1925 a year, an in
crease of $50 per cent.
The foregoing statistics illustrate
the advances which have occurred il
khe prices Of equipment and in the in
terest that must be paid on the in
Nestment in it. The increases in the
cost Of constructing track and bridges
have not been 30 great but they have
Seen very large:
In 1915 a 80 foot through girdei
bridge could be bought and installed
mot including masonry-for $6,427
Ft would cost now $16,117, an increase
of 1876 per cent. These figures are
based upon records of the actual ex
penditures of a certain road. In 1915
this road paid $12,55O per mile foI
merely the rail track fsstenings, ties |
and ballast used in the construction !
; Of q new main track. The same ma |
terials would now cost $26,235, an in |
grease Of ITO per cent. For like !
classes Of materials used in building
p mile Of side track, including two
main track turnouts, this road in 1915.
paid $3.50. The same materials
would now cost sle,0o4, an increase
bf % per cent.
Zone important cause OF the In |
grease in railway expenses Is the ad
vance In the prices Of all eommodi |
eies and therefore In the amounts thai
the railways have to pay for loss and
damage to freight:
"A certain railway recently was !
presented q claim for 34,Bl1 for the
Joss Of q carload Of beef The high
Falue Of beef was. Of course. principal
y due to the increases in prices With
in recent years. The freight earnings
from the shipment were s113.40
Therefore. II the railway has to pay
khe entire claim It will take the rev
bnue from forty similar carloads OF
height-an entire trainload.
"There is hardly a branch Of rail
road operation in which unit costs
have not increased 100 to 800 per cent |
within the last five years."