Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-08-16
BE WARE RISING
PRICES ACCOUNT
RATE INCREASE
Only a Few Cents Should Be
Added to Cost of Various
Articles on Account of
Recent Boost Authorized.
Especial Correspondence to The Journal. }

Especial Correspondence to The JournaI.)
Yankton S. D., Aug. 15.-That
the authorized increase in freight
rates will, for example, legitimate
ly add but from to 16 cents to
the cost of a pair of shoes, Charles
ID. Ortiz, president of the National
Security league. issued a warning
to the public today to beware of
profiteering as a result of the new
schedules. Mr. Orth stated there
| are undoubtedly many unscrup-
ulous retailers who will Immediate
ly use the new rates as an excuse
for making large increases in the
price of every day commodities.
Mr.. Orth's statement reads:
Be Wise in Time.
'Nine-t enths of wisdom is be-
ing wise in time For which rea-
son the National Securities league
wishes to warn the people that in
creased freight rates recently au
thoriZed by the Interstate Com
merce Commission do not justify
any rise in the price of most of the
things which the people use, There
is great danger, in the opinion of
the league. that the freight rate in
crease will be used as an excuse or
camouflage for still further ad-
vancing the high cost of living. To
many people it will sound not only
credible, but convincing, if shop
keepers say they must advance the
price or eggs or shoes. because the
freight charges have been increased
from 25 to 40 per cent. Taking
the latter as an example, it will be
seen that, as a matter of fact. the
increase in freight rates might
justify an advance of between B
and 16 cents on each pair of shoes.
The explanation of this is as fol-
lows:
Case of Shoes Cited.
"There are four freight move
ments of the leather in a pair of
shoes.
(a) The hide from the stock
farm to the slaughter house.
CD The hide from the slaugh-
ter house to the tanner.
(c) The leather from the tanner
to the shoe factory.
(d) The shoes from the shoe
ldCtplS " inc SlOlS "LlSh 0SiA9
them.
LAS nearly as freight rates on an
average haul can be appropriated
each one of these movements costs,
at the old rate, rs cents per 100
pounds. or q cent per pound. An
increase of rs per cent in freight
rates would therefore increase
freights 19& cents per 100 pounds,
or 3-16 cents per pound.
Assuming that five pounds of
hide, equal to about four pounds of
leather, go into a pair of shoes, and
that a completed pair of shoes
weighs four pounds. the increased
cost of same resulting from a %
per cent increase in freight rates
would be: (a) 5 lbs. at Slice per
h., 1915 of 1c; CD lbs. at S-1G
per h., 1916 of 1c; (c) 4 lbs. at
3-16c per b., u of 1c; (d) lbs.
at 3-16 per h.. q of 1c, to which
add for freight on containers. say
/ pound, 3-16 of 1c; total 3 9-16 of
lie, or to make it round figures, call
it cents, which would be the
actual increased cost of the leather
in pair of shoes under freight
rate advance of 25 per cent. AL
lowing 1 cent (Which is eXorbitant
for the purpose) to cover the
actual increased freight rates on
the other material in the shoe. the
maximum increased cost would be
cents a pair, or 1 per cent on
SIS pair of shoes.
Assuming that the entire move
ment of hide, leather and shoes
was in a district where the freight
had been advanced 40 per cent in
stead of 25 per cent, the increased