Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-22
Higher Rates Granted the Railroads
Should Reduce Taxation and H. 6. L..

of adequate rate increases-and the commits
sion granted the roads substantially al they
roads and enable them to make the necessary
improvements in facilities to meet the trans
portation demands. With that in prospect IL
is the feeling among railroad experts that the
increased rates will so beneht transportatioi
that money will be saved to all shippers, ana
therefore, with the increases actually onset
by tax reductions, the increased rates Will re-
suit in reduction in the cost e OIL NV Assoca-
ton of Railway Executives. has said IN TINS
connection:
AT the recent rate hearing before the In
terstate Commerce Commission a large NUMBER
of shippers testified that Inadequate transpor-
tation was far costly to them than ade.
quate rates They presented the view that II
the producer cannot get his goods to IN, me
will be diminished. On the other hand, if the
producer get adequate transportation pro-
duction will be encouraged
IF the supply of the necessaries should be
curtaled by Inadequate transportation and the
supply thus diminished the cost of living would
Inevitably go up On the other hand with
adequate production and a bountlful supply
be to diminish the cost of living.
Aside from all these arguments tending to
show that the increased transportation charges
will be absorbed many statements have been
made to show that the increases will not
justify large boosts in the cost of commodities
ordinarily bought in stores and markets w.
organizations. has been quoted saying that
the increases should have mo appreciate eff
feet on the things which the ordinary consumer
purchases"
by no possible computation" he added, "can
the Increased freight rates be made to justify
an increase of 1 cent per pound in the price
of meat or cents per pair in the price of
loaf of bread. Hence the public should be
informed and the forces of the government
should be on guard to see that no unjustifed
burden g IN neODle a
the Interstate Commerce Commissions solu-
ton of the financial problem of the railroads
The National Security League. taking up this
question in a concrete way, has said:
Taking shoes as an example. the increase
vance of from to 16 cents per pair. Assum-
ing that the entire movement of hide. leather
had been advanced 40 per cent instead of %
per cent, the increased cost would be about
bled to increased freight on COAL new
machinery and other things which used in
pair of shoes would. be in the neghborhood of
16 cents pair, or per cent on an IS pair of
shoes"
The Pennsylvania railroad made some calcu-
lations as to what effect the increases might
have prices to consumers in Philadelphia,
it's headquarters.
Most flour is shipped in carload lots. TAX
ing the rate from Minneapolis to Philadelphia.
the 40 per cent increase will amount to 33
cents per barrel of 200 pounds" the statement
says. ION four-pound sack of flour
this will be just trihe less than cents. Even
if the flour is shipped in less than carload
lots the increase in the freight charge per
twenty -four pounds would be cents.
LAS crate of eggs contains thirty dozen,
glance at the rate sheets will show that
carload shipment the added freight charges
would be about half cent per dozen eggs
and in less than carload lots about two-thirds
of cent dozen. Similarly it will be OBJ
served that the increased freight charges
butter per pound from Chicago to Philadelphia
when sent in carload lots would be about
mills and less than carload lots less than
81 mills-in the case a little less and in
the other little more than half cent
pound
Under the rates the increase in freight
charges for shipping early potatoes from
southern New Jersey or Virginia points to
Philadelphia would amount to 3.3 cents and
81 cents per bushel respectively. The house
keeper in the larger cities who buys potatoes
by the peck ought, therefore, not to be charged
more than cent additional for each peck
of potatoes purchased. On packing house
products. such ham, bacon lard and canned
meats shipped from Chicago to Philadelphia
in carload lots. after the advanced rates be-
come effective. the increased charge will be
IT mills on each pound while in less than
carload lots this will be "a mills"
Copyright, 1920, by The Washington star.)