The Taney County republican., 1920-04-22
FREIGHT LEAST
\. C.L, EXPENSE
Director General Hines Says Rail.
road Transportation Costs
Are Lowest in History.
NOT CAUSE OF HIGH PRICES.
Freight Advances Compared With Rise
In Value Of 6oods-TransportstIon
Cheapest Thing Public 6VyS
Charges on Some Articles,

Data compiled from authoritative
sources shows that railroad freight
rates are the least factor In the cost
OF living. Although the proportion Of
the total cost Of goods that can he
charged to transportation Is not known
with statistical accuracy, It is estimat-
ed that the average transportation cost
OF things produced In this country Is
very small percentage Of their total
cost to the consumer.
Freight cost a. Per Cent Of Total.
In letter to Representative John J.
Esch, chairman Of the House Commit
tee on Interstate and Foreign Com.
merce, Julius Kruttschnitt. chairman
Of the Southern Pacific Company,
points out that In the last Ave years
the value Of goods increased on an nv.
eraGe OF 500 a ton. while freight
charges advanced snly 60 cents a ton.
In Ave years, he explains, the aver.
age value Of freight carried by the
railroads increased from $50 to S119 a
ton. The cost Of carrying this Increns.
ed from 81 TO $3.50, paid to the rail.
roids. In 1914, he adds, 36 per cent
Of the total cost Of the goods was
spent for transportation. In 1919 only
"a per cent was spent
I'm other words" Mr.. Kruttschnltt
writes, "only so cents out Of S63, or 1.3
cents out Of every dollar Of increase in
yalue Of commodities In 1919 was caus.
ID by Increased freight charges. The
responsibility for the remaining S62 20,
or 0S7 cents out Of every dollar, must
be sought elsewhere. It was not caus.
ed by freight rates"
Rates Lowest In History.
Comparison with transportation
charges in other countries shows that
In no other country Of the world Is
transportation furnished at 50 low q
cost as In the United States. Compar-
ed, too, with the cost Of other goods
and services today, railroad trnnsporta.
tlon Is the cheapest thing the public
buys. 1t Is sold for less than the cost
Of production, considering all the ele-
ments Of cost.
In a statement on this subject 10 the
New England Bankers Association
Walker u. Hines, Director General Of
Railroads, said;
Il think II IA a fair statement
that at the present time, despite
the increases which have taken
place In freight rates, a ton Of
steel or ton Of COAL n bushel of
wheat or the unit Of any other
commodity has to pay for trans
portatlon less percentage Of the
price Of that commodity than ever
before IN the history Of the coun.
try"
Charges on Some Articles.
Before the war suit Of clothing
from one Of the Chicago factories, sell.
inE for $50 In Il retail shop. was car.
ried from Chicago 10 Los Angeles for
l6h cents. The suit Of clothes now
retalls at $50 or SEQ, but the freight
rate on that 2.265 mile haul has IN
creased only Sh cents, while the price
Of the goods has gone up $50 or $40.
The % cents does rot cover all the
transportation cost IN a suit Of clothes
the transportation charge for carrying
the wool from the ranges and Ii,
cloth to the clothing manufacturer and
other minor carrying costs enter into
the consideration, but the hnai trans
portation charge IL the principal one
and the other charges add only few
cents more.
New England shoes are shipped
from Boston to Florida at cost Of iesl
than 8 52-3 cents a pair. This is an in
crease Of only one cent over the pre-
VAT rate. The railroads also carr,
beef from Chicago TO New York for {
efisfse of about two-thlrds Of a cent
q poufid Typewriters are carried from
New FORK to St. Louis for SO cents. A
ipe sh7Resrsrh-4 sauisa by trsiEhi