The sun., 1919-08-22
Living Cost steeple Climbing.

Living Cost steepie Climbing.
Out Of the annual report of n West
eru carrier Mr.. JANIS McKIRDr OF
commends to US some ex-
rncts which In the abnormal condl-
ions OF to-day we cannot commend
either to the public or to the railroads
themselves as good economics, safe
practice or plain every day
.orse sense:
The popular impression OF the
effect of an increase in rates on
living costs is grossly exaggerated.
and there is no doubt that the fear
Of greatly increasing living costs in
hueneed the public and the Inter-
state Commerce Commission, through
the pressure Of public opinion, to
deny the petitions Of the carriers for
higher rates to produce an increase
in revenue commensurate with the
rises in costs Of labor and material
To show how slight a foundation
exists for this belief and how ex-
aggerated Is the popular conception
Of this influences the following figures
are adduced:
"In the period from 1910 to 1919
the price of dressed beef originating
in Chicago and transported to New
"a
40 cents per pound. or, expressed in
our smallest unit Of value. iTs mills,
while the freight rate increased -
mills. or only Ia per cent
The price Ger pound of ham and
bacon transported between the same
points increased 2o5 mills. whereof
the increase in freight rate was re-
sponsfble for III mills. or only Ola
per cent
The increase in the cost OF a
suit Of underwear transported from
Boston to Chicago in the period 1910
to 1919 was 1850 mills. TO which the
increase IN freight rate contributed
mills, or o.15 per cent.
"A pair of shoes transported from
Boston to Chicago in the same period
increased in price $500 mills, OF
which the increase in freight rate
was responsible for mills, or o.ls
per cent.
NO coin is small enough to rep
resent any of these increases in cost
but II the dealer should add one
copper cent IN each case to the 1910
prices to reimburse him for the in
creased cost Of this commodity due
to increased freight rates he ,coud
grossly orerckdroe the purchaser IN
every case. He would make him
pay nearly double the proper amount
in the case Of a pair OF shoes and
over sir times the proper amount in
the case Of a pound of ham or
bacon"
The trouble with this sort of mathe
matics is that 1t doesn't realize
where either the beginning or the end
ing ct an economic process Is As al
outsider it Is treating Of underwent r
but il doesn't know what underwear
IS. 1t is treating 6f freight as az
insider. but il doesn't even know what
freight is.
A third OF cent added TO thu
freight of a suit Of underwear shipped
from Boston to Chicago. for example
doesn't seem much, II IS true. Blu
the freight on that suit OF underwear
didn't happen TO begin in Boston; q
didn't happen to end on the car IL
Chicago. The freight which the sui
had to pay not merely didn't happer
to be represented only on that Chi
cago excursion; it didn't happen tt
be dressed only in that suit itself
IT'S a long story, but it may help Il
point a moral to loose thinking
whether on lofty pinnacles or on hum
Bile footstools.
II 1t were OF cotton, the freigh
on that suit OF underwear did no
begin merely in Georgia, say. Tha
State was only a half way station
for the general freight increase hi
everything when IL hit the underwear
on the trip from Boston to Chicago
and the cotton from Georgia u
Ma ssac achusetts.
The general freight increase hit th'
agricultural implements shipped from
Illinois TO Georgia TO cultivate th'
cotton. Underwear freight. 1t hi
the textile machinery shipped from
Ohio TO Massachusetts to manufac
ture the underwear. Underwear
freight. II hit the ore shipped from
Minnesota to Pittsburg TO make thi
steel for the implements and for thu
machinery and then shipped agaIr
from Pittsburg to Illinois and Ohio
Underwear freight.
But that isn't all. The genera
freight increase that hit the under
wear and cotton and implements anc
machinery and ore and coal and cok'
and hundreds of other things, finally
narrowing down TO the suit OF under
wear, hit food. II hit the food o
the ore miner. II hit the food Of tht
steel worker in Pittsburg; the foot
Of the machine builder in Ohio ano