Evening journal., 1921-08-08
AGITATION FOR RATE REDUCTION.

Opposing agitation for general reductions In rates at
~ present. the Railway Age calls attention to the facts
nrst that the OF the things the railways have buy
still relatively much higher than the freight and pas
senger they receive and secondly that for six
average wholesale prices Of commodities were much
higher than railway rates. while for only months have
railway rates been relatively higher than average whole
sale prices
Comparing with the year 1916 says the Railway Age,
The average advance in passenger rates ncudng the
sleeping tickes) has been SO per cent Il is
than this for riding in sleeping cars, but
This is the advance for all classes OF passengers The
increase in the rate per ton per mile since 1915 has
been "a per cent The average increase In both freight
and passenger rates has been less than 65 per cent
Now take look at the present operating costs. over
"a per cent Of an railway expenses wages OF
and OF Even since the recent reduo-
ton in the cost per hour Of railway labor
Is 1913 per cent than in 1916 There have been
sana reductions last year the prices Of mate
ras but the prices which the railways are paying
for them average per cent more than nye years ago
The average price paid FOR 1876 Si76 per ton
Coal prices have been slowly declining last
but the average the railways May the latest
month for which figures available, Si29 or al
most iii per cent. more than in 1916
In the first five months Of 1920 the Railway Age adds
The total earnings Of the railways 5s per cent
than in the months OF 1915. The total operat-
ing expenses, In spite Of the vast retrenchmens made,
100 per cent than the months OF 1915
Faxes s0h per cent more Result In the nrst nve
months OF 1916 the railways earned ss 100000 net operat
ing income, while in the months Of 1921 they earned
only sii70000 net operating income a decline in net
operating income for these months Of over &C per cent
None OF the arguments setting forth why rates should
be reduced makes any reference to the fact that while
rates high compared with the general level Of
prices, railway rates for years did not increase
while the general level Of prices advancing and that
producers and shippers proted meantime by the fact thai
prices advancing while railway rates were not
The railway freight rate was the same in 1911
in 1913 Meantime the average wholesale prices Of
commodities had advanced 76 per cent In 1920 the aver
railway freight l6 per cent higher than in
1913 while the average wholesale prices OF commodities
ii3 per cent higher than 1918 As recently as
January, 1871 average wholesale prices OF commodities
we're Y per cent higher than 1918 Only since ther
freight rates been relatively as compared viii
1918 than wholesale prices other words during tl,
entire six years from 1915 to 1920 inclusive average
wholesale prices from to i43 per cent higher thar
IN 1913 while railway rates during this time were neve
more than &c per cent higher than 9i3 and yet noS
Ncn for less than six months railway rates have bee
elatvey higher compared with 1913 than wholesal
prices, have loud general demand for reduction
rates on the ground that producers shippers can
not stand" the present rates
When between 1913 and 1917, railway rates were stand
still and average wholesale prices were advancing
per cent spokesmen for the railways constantly wer
saving that with and prices Of all kinds advancn
pe railways could stand the then existing rates an
ere entitled to advances in them both because the COS
railway operation rapidly increasing and becaus
ne Increasing prices Of commodities would enable II
traffic stand higher rates But the rates were not al
sanced.
Upon what principle OF consistency equity or soun
business those who opposed advances whe