Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1921-04-28
THE RAILROAD QUESTION


There is nothing to be gained by
getting Mysteries over the discus
sion of the railroad freight rate
question:" says the republican pub
licity association, through its pres
ident, Hon. Jonathan Bourne, Jr.
ut is true that the situation is bad
even critical-and that something
must be done with the least posi-
BILE delay, but mere denunciation of
the rates charged get us nowhere.
The question is whether the rates
ought to be lower, and, if so, how
that can be accomplished.
Now, for one thing, the official
reports of the railroads as filed with
the Interstate Commence Commits
sion and subject to checking by the
Commission to ascertain their ac-
curacy, show that the roads as a
whole are not getting enough out of
current operation TO pay current OPP
perating expenses. The roads are
not getting rich at the expense Of
the people-that is certain.
Moreover, there is something of
interest in a comparison of freight
rates with prices of commodities.
Such Comparison, taking the year
1913, before the war, as a basis for
computation, shows that freight
rates, when figured on an average
ton-mile basis, have advanced Sc
per cent, while the average whole
sale price of commodities have adj
vanced II per. cent. Comparisons
for other years make an even more
impressive showing. In 1919 the
average receipts per ton-mile had
advanced 35 per cent as compared
with 1913, while the average whole
sale price of commodities had adj
vanced 112 per cent
ut is clear from this that freight
rates did not go up in proportion to
the prices of commodities. There
was good reason why they didn't.
Prices of commodities are determ-
ined by supply and demand-by pri-
vate agreement as to prices. Freight
rates are regulated by the govern
ment through the Interstate Com
merce Commission. During 1915,
1916 and 1917 the average receipts
of railroads per ton mile remained
practically stationary, as there was
no advance in rates. But commod-
ity prices had advanced "a per cent
by 1915, and 76 per cent by 1917,
1.-THE unfortunate circumstance Is
that the railroads did not get their
advances along with advances in
other lines OF business. Their rates
were not materially increased until
near the time for the after-war
slump. The government failed to
authorize collection of higher rates
when everybody would have been
both able and willing to pay them
out of the high prices OF basic COM
modities, and then authorized the
increase when prices of basic COM
modities had fallen almost to pre-
war levels. In addition to that. the
government, through its Railway
Administration, adopted rules which
required the railroads to pay for
services not rendered and placed up
on their payrolls large numbers Of.
men not needed.
These are facts shown by the
records. The private managers of
the railroads are not responsible for
the conditions above described. 1t
is quite likely, of course. that pri-
vate management can effect some
economies, and this has evidently
been done, as indicated by the in
creased amount of freight carried
per car and the increased mileage
the cars make per day. But econ
omies, and this has evidently been
done, as indicated by the increased
amount of freight carried per car
and the increased mileage the cars
make per day. But economies of
this kind cannot possibly be suffi-
cient to meet the critical situation.
Government regulation proved un-
equal to it's task in the days when
the country could easily have paid
freight rates somewhat in proper
ton to increased prices of commod-
tiles. The owners of the roads ought
not to be made to suffer for the acts
Of the government or its agents.
Manifestly, freight rates cannot go
up, the roads cannot pay the pres
ent operating expense on present
rates, hence the expenses must come
down or the government must take
over the roads and pay the deficits
out Of the treasury as 1t did in the
period of the McAdoo regime"