The Owosso times. (Owosso, Mich.) 1897-1926, 1920-05-14
FREIGHT LEAST
s H. C. |, 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 Goods-Transportati
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 that can be
charged to transportation is not known
with statistical accuracy, 1t Is estimat-
ed that the average transportation cost
Of things produced in this country 10
u very small percentage of their total
cost to the consumer.
Freight Cost "a Per Cent Of Total.
In letter to Representative John ].
Esch, chairman of the House Commit
tee on Interstate and Foreign Com
MERGE, Julius Kruttschnitt, chairman
Of the Southern Pacific Company,
points out that In the last five years
the value Of goods increased on an av-
erage of $63 ton, while freight
charges advanced only 60 cents tor.
| In five years, he explains, the aver
age value Of freight carried by the
ton. The cost of carrying this increas-
ed from 81 to $3.50, paid to the rail
roads. In 1914, he adds, $50 per cent
of the total cost Of the goods was
spent for transportation. In 1919 only
2.4 per cent was spent.
"In other words" Mr.. Kruttschnitt
writes, "only 80 cents out of $63, or 1.3
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 remaining $50 90,
or 9S.7 cents out of every dollar, must
| be sought elsewhere. 1t was not cars-
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 80 low a
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. It is sold for less than the cost
Of production, considering all the ele-
| ments of cost.
In a statement on this subject to the
New England Bankers Association
Walker d. Hines, Director General of
Railroads, said:
| IT think II Is a fair statement
| that ut the present time, despite
| the Increases which have taken
| place in freight rates, ton Of
| steel or a ton of coal, bushel Of
wheat or the unit Of any other
commodity has to pay for trans
portation a 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.
ing for $40 in a retail shop, was car.
ried from Chicago to Los Angeles fol
1914 cents. The suit of clothes now
rctails at $50 or $50, but the freigh,
rate on that 2,265 mile haul has in
creased only So cents, while the price
of the goods has gone up $50 or $50.
The % cents does not cover all thu
transportation cost in q suit of clothes
the transportation charge for carrying
the wool from the ranges and thu
cloth to the clothing manufacturer ant
other minor carrying costs enter into
the consideration, but the final trans
portation charge is the principal one
and the other charges add only few
cents more.
New England shoes are shipped
from Boston TO Florida at cost of less
than 8 2-3 cents pair. This is al in
crease of only one cent over the pre-
war rate. The railroads also carr.
beef from Chicago to New York for ;
charge of about two-thirds Of a cen
pound. Typewriters are carried from
Now York TO ST. Louis for &C cents
$50 phonograph Is carried by freigh
from New York to Atlanta for $3.50
A grand piano is carried clear across
the continent for $50 and In carload
lots for sos.
These are typical freight rates, ant
they make ii plain that American rail
roads give the lowest cost service II
the world.
Even with very considerable in
crease In rates 10 make the roads self
supporting, transportation will still b,
the cheapest thing the public buys.