Arizona republican., 1911-10-01
The Selling Prices of Goods and
 Freight Rates

statement by President Ripley of the Santa Fe on the question of freight rates as affecting the con- sumner is going the rounds of the Arizona press. At least one of the assertions in MT. Ripley's statement is wrOng-in all probability he is mis- quoted. He is made to say that the merchant pays, in freight charges. only two cents on a pair of shoes shipped across the continent The fact of the matter is that an aver age pair of mems shoes shipped into Arizona carries a freight charge of fifteen cents.
 MT. Ripley mentions various articles of merchandise that are sold in the west at higher prices than in the east, and implies that the sole ex- cuse for the higher selling price in inc west is freight rates" He points out, as to the articles mentioned that inc cost of transportation is but a small proportion of the added selling price.
 We don't know of any merchant in Phoenix, at any rate, who alleges that high freight rates account wholly for any difference in the selling prices of merchandise sold here from the pre- vailing prices in the east Freight rates do in fact account largely for such difference as exists. But there are other causes also, as every mer- chant can readily point out to his customers. The cost of doing business in western towns is higher than in towns of similar size in the east. Among the reasons for the higher cost of doing business in the west are: A less stable population, combined with the credit system, which results in considerable losses from credits extended to people who move or to other places; nigh taxes. high in surance rates, and high wages. The aggregate loses sustained by PhOe- nix merchants in the course of year from uncollectable accounts are great. Taxes are high, as everybody knows, and the rates charged for fire insurance are little short of eX- tortionate. And yet every man in business must carry adequate in surance on his goods. Clerks and other employees of business establish ments are paid salaries at least one third higher than in the east. The maintenance of delivery systems also costs far more here than in the east, on account of the higher cost of horses and vehicles and the higher cost of horse feed. And so it is all down the line; fuel in winter costs several times as much as in the east, and electric lights cost far more Rents are higher than in eastern towns.
 All of these items of expense con- nected with conducting a business must be taken into consideration by the merchant in fixing the prices on his goods.
 And yet, notwithstanding the much greater cost of doing business here because of high freight rates and the other reasons we have mentioned. the fact remains that, speaking gen erally, goods are sold in Phoenix at a low figure and on an extremely narrow margin of profit. And as to many lines, at least, the buyer finds. ! on investigation that he can buy as cheaply here as in the east. And on comparison with the cities on the Pacific coast. hundreds of residents of the Salt River valley have found by actual trial that they can buy cheaper in the stores of Phoenix | than they can in the stores of Los Angeles. Not only that, but they | find here just as great a va riety of goods to choose from. and | find that the merchants of Phoenix | carry goods of the same quality as sold by the stores of the highest grade | on the coast.
 So that not only is the freight cost | higher than is implied in the state | ment credited to President Ripley, but merchants do not claim by any means | that the cost of transportation alone | accounts for such higher prices as