Trade-in allowance not being taken into account. Misclassification of meals and entertainment to avoid the 20 percent limitation as well as the deduction of numerous personal expenses. Self-insurance policies and reserves. The least expensive way to move general cargo is by water. However, most of the transportation within the United States is done by rail and trucks.
Rail trans portation costs about three times as much as water transportation.
Truck transportation is about 10 times more than by water, and air transportation about 40 times more than by water. Cargo planes usually carry only expensive, lightweight, or perishable merchandise. The trucking industry hauls about 75 percent of the nation's industrial products and employs over 7 million people. The Federal Government began regulating transportation companies in the late 1800's to prevent railroads from charging unfair freight rates. Regula tion also helped to protect transportation companies from unfair competition.