The sun., 1919-08-11
Transportation Costs on the Backs
of the Public.

transportation Costs on the BACKS
of the Public.
The Washington bureaus of the
railroad labor organizations which the
other day commanded in Prussian YER
nacular that the American transpor-
tation systematic very arteries of
the nation-be given over to them on
their own terms and conditions have
read the writing on the wall--the
writing by the hand Of the American
people answering, in the American
fighting spirit, threats and intimida-
lions. The leaders of these organi-
cations therefore issue the following
statement:
ITO prevent any Misunderstanding
as to the policy of the organized rail-
road employees we unite In a definite
assertion that we have no desire. and
had none. to impress upon the public.
by violence or by threat. our proposal
that the railroads be natlonalized
under 'tripartite CONTROL"
The American people will accept
that disclaimer for what 1t is worth.
But while determined to take no
threats from railroad organizations or
any other organizations, the Ameri-
can people are perfectly. willing to
concede that the claim for more wages
is a separate and distinct question.
They are perfectly willing to consider
the question with fairness. They are
perfectly willing to begin the discus
sion calmly and coolly where Mr.
WARREN S. STONE began 1t the other
day-at the foundation.
Now what are the simple, plain
fundamentals OF this matter of rails
ing wages to meet prices and then OF
raising prices more than the wages
were raised, and then Of again raising
wages to meet prices, and so on
around the vicious circle?
Original cost increases are cumu.
latlve. They multiply from the start
to the finish. The origin Of our food
is the farm. Nearest TO that farm
origin as a cost factor Is the trans.
rortatlon machinery which must begir
right there to move the original pro-
duction on its many journeys to the
ultimate consumer.
Begin at an Iowa farm with q
bushel of potatoes at an original farm
cost of n single dollar. Shoot 1t, II
you please, with oily the added cost
Of transportation and labor, stralgh,
to the retail distributor In immediate
touch with the consumer, all other
middlemen being cut out. Call the
labor and transportation cost half &
dollar. Then, although the retailer
should he philanthropic agency, OF
socialist government, or anything
ing to forego any profit, except nom
inal profit to preserve the business
cannot sell the bushel of potatoes fol
the mere $1.50 represented by origina
cost plus transportation plus labol
plus nominal profit.
Why? Because merely to avoid (
heavy loss the distributor must ado
something for the potatoes bought a
the farm but lost on the journey; tn,
potatoes for which he has paid freigh
and labor charges as well as tn,
farmers price, but which have rotteC
or otherwise spoiled in the dlstrlbu
ter's depot; the potatoes for which
the distributor has paid the farmer
has paid the labor and has paid tn,
railroad, but for which the distributes
may not get paid by the bad debtor.
If an adequate sum to cover thi
wastage is not added to every bushe
OF potatoes that is handled. then ever,
bushel Of potatoes that is lost through
the economic wastage will wipe on
the nominal profit on many bushel
Of potatoes that are sold and paid 70
by good debtors.
SO add n nominal per cent?
9 cents a bushel-for nominal prof
and 10 per cent.-or 10 cents-fo
economic wastage.
Now go back to the farm. Adj
to the farmers original price Of $
half dollar for his share to NEE
his Increased cost Of living. Instea
OF half dollar for transportatio
and labor, put in a dollar for thei
added share to meet the increased cos
OF living. Then your bushel Of pota
toes in the hands Of the distribute
cannot, ms before, add merely the
cents of nominal profit. 1t cannot nd
merely the II cents to cover GO,
pomic wastage. Every bushel of nc
tetoes that is now accounted for b
economic wsstage means loss at til
aNNle