El Paso herald. (El Paso, Tex.) 1901-1931, 1919-10-11
HOW MUCH ARE FREIGHT RATES
TO BLAME FOR COST OF LIVING?

ZEE old Merchandising fable that ths freight rate zas
responsible for higher prices IN the west than II The
east though the difference IN prices Of commodities
very marked Ve the actual freight rate could be
expressed only il cents fractions Of cents per item is
recalled by the recently expressed theory that increased
freight rates fundamentally responsible for advauc
ing the cost Of living The increased freight rates under
government control Of the railroads. have had something
70 do with the higher cost Of living, naturally, but COM
paratveiy little Chiefly, they have served excuse
Tor increasing prices 70 more than cover them Even So
food and clothing prizes in the southwest generally
Pare highly aToraby at the present time with those IN
the north and east
Julius KFuttsehnitt, Of the Southern Pacific company,
has sent to representative John Esch chairman Of the
house committee On interstate ana foreign commerce.
statement to show that increases freight
been minor compared with the increase IN prices
charged His statement consists largely Of
figures based upon Brsdsests reports and the interstate
commissions railway reports showing the total
value Of al Eoods transported By rail the average value
per ton Of these g0odl the freight charges per and
the relation Of tie freight charges the cost Of the goods
themselves.
Mr. Kutsshnitt points cut thar the average value per
ton Of all freight transported By thu American railways
1914 sss In 1918 It had risen to $11s increase
TO the consumer amounting TO Sss ton.
The freight charge per ton N 1914 e and under
the -ate increases PIT in effect BY the director general Of
the rairosd administration thsss freight charges have
increased 50 percent Encs 1914 making the average
freight charge this year 500 per ton.
The point he makes Is the sharp contrast between the
increase n the Tsue Of the commodities and the freight
Of the total value Of the goods At the present time the
freight rate represents only - percent Of the value Of
the goods transported
Tie deduction is that whereas the goods transported
have cost the SIS ton more than in 1874 the
freight charges paid thess goods amount to only so
cents ton Nj Kruttschnitt II up this way
One and onshrd cents ont Of every dollar Of increase
IN prics Of commodities is caused By increased freight
charges responsibility for the remaining esT cents
ont Of every dollar be sought elsewhere; it not
caused By freight charges"
The cost Of living increased before the railroad admin
isTaton increased freight rates has kept going up
the elevation Of freight rates took effect and after
any increase due 70 freight rates taken Of M
1tsehnts obvious purpose Is not prove that higher
railway rates lave nothing whatever to do with the cost
Of living but that their effect is comparatively mnor
II a merchant were 70 observe that the cost Of his
goods had more than doubled this year compared With
an earlier year be should set about finding what was
wrong With view Of correcting that tendency, be would
start analyzHg al the factors entering iato his costs
Re should discover that for ever dollar Of increased
Dendurs only cents dus to the increased tanspo
taton Of the qo5ds he procured for bis stock It Is likely
Re you'd spend less tine blaming that situation thar he
would IN figuring how to eut down The ss7 increase
ing from 0thsg factou.