New-York tribune., 1920-01-04

creditors, more friends and fewer
exploiters.
Every farmer, every manufac-
turer, every laborer, every business
man in the country should be
vitally concerned in efficient trans
portation as the first necessity Of
commerce..
But If no other factor were con-
sidered by the public the relation
ship Of the railroad problem to the
cost Of living should arouse the
keenest general interest and force
an expeditions, satisfactory solution
of the problem before the roads are
handed back to their owners on
March l. Unfortunately, however,
there seems to be an insufficient
understanding Of this vital factor
by the majority Of our people.
There need be no fear of mate
rally increasing the cost Of living
by allowing railroad capital a liv-
ing wage, for increases in freight
rates have but slight effect on the
general cost Of living, as compared
with other factors.
This is demonstrated, to cite only
one specific example, by the fact
that the item Of transportation,
computed from the shipping of a
steer on ranch to the selling of a
pair Of shoes in a retail store, en-
ters into the cost Of shoes only to
the extent Of 25 cents pair. So
railway rates cannot be held re-
sponsible for the increase in tho
selling price Of shoes which former
ly retailed at SIS and now cost $12.
The cost Of living began it's sharp.
est increase late in 1915. Taking
September, 1915 as parity for
the wholesale price Of all COM
modities, it is found that, In July,
1917, it had reached 1877. No ma.
terial increase in the average freight
rate Of all commodities took place
until August of 1917. Thus the ad-
vance from parity to 1877 in the
wholesale price Of all commodities
had taken place with freight rates
practically unchanged. Freight rates
advanced in August, 1917, and from
that time on the increase in COM
modify prices was very gradual,
reaching only 1877 in February, 1919,
an increase of only ten points
over the prices in July, 1917. This
would indicate that the cost of liv-
ing gained it's greatest headway
without any increase in rates, and
that this headway was not main
tanned at the same rate when
freight charges became heavier.
The average commodity value per
ton of freight carried by the rail-
roads in 1919 was $119, as compared
with $56 in 1914. The average
freight charge per ton was $3.50
last year, as against So in 1914. The
percentage Of the carrying charge to
the value of a ton Of freight was "a
per cent, as contrasted with 3.8 per
!cent in 1914. But the increase in
the cost Of the average ton Of
freight over that Of 1914 has been
$63, while the increase in the
freight charges per ton has been
only 80 cents-a mere pittance-
and the relation Of freight increase
to cost increase has been only 1.3
per cent.
Freight Increase
Would Not Raise Prices
To sum up, out Of the average
increase Of 500 in the cost Of ton
Of freight in the five-year period of
1914-1919 only 80 cents was caused
by increased freight charges.
These statistics unquestionably
prove the negligible influence which
transportation costs exert on COM
modify prices, and they certainly
sustain the contention that q fair
increase in freight rates would not
materially increase the cost of liv-
ing.
On the other hand, if adequate
rates are not granted and the rail-
roads are brought to the verge of
bankruptcy, with the impaired serv-
ice which such plight would nec-
essarily entail, the cost Of living
would inevitably mount still higher,
because increased production-the
only way prevailing prices can be
reduced-would be impossible, due
to decreased distribution facilities
for raw materials; and even if pos
sible, by virtue Of some miracle, it
would be in vain, owing to the lack
R1Na3 AS~o~