The Barre daily times. (Barre, Vt.) 1897-1959, 1921-05-10
AS One Means of Aiding
Railroads Back to
Normally
SAYS KRUTTSCHNITT
TO SENATE BOARD
He Also Suggested Five
Other Remedies to Help
Railroads

Washington, D. c., May 10.-The
trouble with the railroads IS excessive
operating expenses, an abnormal
amount of which is the cost of labor,
Julius Kruttschnitt, chairman Of the
board of the Southern Pacific railrond,
declared to-day before the Senate in
terstate commerce committee. He was
the first witness at the opening of the
congressional investigation into the
transportation situation.
He suggested five remedies which he
said were easily applied and productive
of great economies. They are;
stop the use for common carrier
purposes of highways built with public
moneys without adequate tolls and
proper regulations.
Make inland waterways built or
improved at public expenses carry
themselves as to interest on cost and
maintenance by regulating the COM
mon carrier traffic on them and by i'm
posing adequate tolls.
Keep the United States government
out of the business of operating steam
ships and stop the lavish expenditure
of public Imoney to provide coast to
coast ocean transportation in competi-
tion with transcontinental railroads.
Tolls for use of the Panama canal
should be sufficient to pay interest on
its cost, operating expenses and main
tenanee.
"Do not deprive transcontnental
carriers OF coast to coast traffic by in
flexibly enforcing strict long and
short haul class
In opening his statement Mr.. hrutt-
schnitt said;
Widespread propaganda Is being
carried on TO arouse public sentiment
against existing freight rates. The fact
il that even since the rates have been
advanced the cost of transporting COM
modities is far less than the toll taken
by the commission and the retailers.
He said that the general defation
and fall of prices had caused stagna-
tion of business. To support his argu-
ment that railroad rates were not re-
sponsible, he said that Notwithstanding
the lowest ocean tonnage rates in his
tory millions Of tons Of shipping here
and abroad were rusting in idleness
because there was such a small demand
for goods.
The percentage of freight charges to
the average value Of commodities
shipped in the early part of 1921" he
added. lis only two-tenths OF one per
cent greater than in 1914.
"The trouble with our railroads has
been intensified by the results of 20
months of an experiment in govern
ment ownership and the word owner
ship is used advisedly, as the federal
administration treated the
railroads as if they We're absolutely
owned by the government and turned
them back to their owners helplessly
bound in improvident agreements in
the making of which their owners had
no voice"
Mr.. kruttschnitt said the increase Of
labor costs in 1920 over 1919 was Ss73,- |
1852. and that If the increased scale |
which became effective Tetroactively |
last May had been in force during the |
whole year Of 1920 the wage bin for
that year would have been approx |
mately $3.50, 900 600. or 81 ,24O,5 ,5l7 ,s5s |
more than it was in 1917. the last year
Of private operation before the war
The government having strangled |
the railroads into something like bank
ruptcy," he concluded. at last re-
moved its hands and permitted a sud
len increase in rates that should have
been gradual and started at least - |
years ago. We should bear in mind and
circulate widely the presidents cpl
gram, More business in government
and less Government in business.