The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1920-03-19
FREIGHT LEAS!
\. c. |. EXPENSE
Director General Hines Says Rail-
road Transportation Costs
Are Lowest in History.
NOT CAUSE OF HIGH PRICES.
Freight Advances Compared Win Rise
In Value Of Goods-Transpo ration
Cheapest Thing Public Buys.
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 thai can be
charged 10 transportation is not known
with statistical accuracy. il is estimat-
ed that the average transportation cost
Of things produced in this country il
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 tina in the last five years
the value Of goods increased on an av-
erage OF S63 ton, while freight
charges advanced only go cents ion.
In hve years. he explains, tho aver
age value of freight carried by the
railroads increased from $50 10 Sli9 a
ton. The cost of carrying this increas.
ed from 81 to 50 So paid to the rail-
roads. In 1914, he adds, SO per cent
Of the total cost of the goods was
spent for transportation. In 1919 only
"a per cent was spent
"1n other words" Mr. Krnttschnitt
writes, "Only SO cents out of S63. or 3
cents out of every dollar Of increase in
value of commodities in 1919 was caus-
I'd by increased freight charges The
responsibility for the rema lining $50 30.
or 9s.7 cents ont of every dollar, must
be sought elsewhere. 1t 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 IL
transportation furnished at so low
cost as in the United States. Compar-
ed too. with the cost Of other goods
and services today. railroad transporta
ton is the cheapest thing the public
buys. 1t is sold for less than the cost
ments Of cost.
In q statement on this sub iect to the
New England Bankers Association
Walker n. Hines. Director General Of
Railroads, said:
II think II In 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. hnshel ~
wheat or the unit Of any other
commodity has to pay for trans
portation less percentage of the
price of that commodity than ever
before in the history If the coun-
try"
Charges on Some Articles.
Before tho war a suit Of clothing
from one Of the Chicago factories. sell.
Ing for $40 In a retail shop. was car.
ried from Chicago tn Los Angeles for
1917 cents. The suit Of clothes now
retails at $40 or SEQ. hut the freight
rate IN that 2.265 mile haul has in
creased only ~ cents. while the price
Of the goods has gone M 500 or $40
The % cents does not cover all the
transportation cost In a suit Of clothes
the transportation charge for carrying
the wool from the ranges and the
cloth to tho clothing manufacturer and
other minor carrying costs enter into
the consideration. hut tho final trans
portation charge is tho principal one.
and the other charges add only few
cents more.
New England 'shoes are shipped
from Boston 10 Florida nj a cost Of loss
than : % cents pair. This is an In.
crease Of only one cent over tho pre-
war rate The railroads also carry
beef from Chicago to New York for 2
Charge OF about two-thirds Of cent
pound. Typewriters are carried from
New York to St Louis for sc cents. A
$3.50 monograph is carried by freight,
from New York to Atlanta for SIS
A grand piano is carried clear acrosf
the continent for $40 and I'm carloa Il
lots for S2s
These are typlcal freight rates, and
they make II plain that American rail
roads give the lowest cost service in
the world
Even with a very considerable In.
crease In rates 10 make the roads self
supporting. transportation will still he
the cheapest thing the public buys