The labor world. [volume] (Duluth, Minn.) 1896-current, 1920-08-14

with the increase In transportation
costs. Hence the public should be
informed and the forces Of govern
ment should be on guard to see that
mo unjustifiable burden is imposed on
the people as a result of the Inter-
state Commerce Commissions -solu-,
tion of the financial problem Of the
railroads. 80
A Tax Of SIS Per Person.
An added annual charge Of SIS per
capita or SIS per family seems large.
but as a matter Of fact the increase
in railroad rates will not mean that
much as a direct charge to the indi-
vidual or to the family. A substan.
tial part of the revenues of the rail-
roads comes from freight on exports,
and in that case the increase will be
paid entirely by purchasers Of those
exports in other countries. There il
also the very considerable item Of the
freight on materials and products Of
all kinds bought by the federal, state
and municipal governments which is
paid through taxation.
Coal is one commodity the price Of
which will be directly and apprecia-
bly, Increased by the advance in freight
rates, the increase ranging from IS
cents to $1.35 per ton, but even that
does not make very great difference
in the annual budget of the average
family.
Should Not Affect Prices.
The increase in freight rates should
have no appreciable effect on the
prices of the vast majority of things
which the ordinary consumer pur-
chases. This is so far the reason
that, in the case of almost all ordi-
nary commodities, the cost of trans
portation Is at present such a negli-
gible item in their selling price that
an increase of even 40 per cent In
freight rates would be an unimpor-
tant addition.
This fact is brought out clearly
when an analysis is made of the SELL
ing prices of almost any commodity
in relation to the cost of transporta-
ton Of such commodity. Thus, in
the average household budget, meat
constitutes one of the most important
items Of expenditure. the average fam
lily consuming about 400 pounds Of
meat per year. In 1916, the average
wholesale price of meat in eastern
cities was about 21 cents per pound,
and the average retail price almost
twice this much. At the same time,
the freight rate per pound for a. haul
Of 1000 miles, which is we'll above the
average haul, was less than seven
tenths Of one cent. Even when Hber-
al allowance is made for the other
transportation costs entering into the
final price of meat. such as the haul
ing of the cattle to the Slaughter
house, the hauling Of feed for the
cattle, ETC., it seems clear that the
total transportation costs in a pound :
Of meat is at present not over cents.
A forty per cent increase in freight
rates, therefore, would add less than
one cent per pound 10 transportation
costs, and. at the maximum, should
add no more than the same amount
to the retail selling price. !:
Higher on Flour. !.
In the case Of a. bulky commodity
such as flour, the freight costs would
be somewhat higher than in the case,
Of meat, but even in this extreme !:
case q 40 per cent increase in freight
to the cost of manufacturing -four :;
and placing it on the market. Thus, !
In 1919, the freight charge for hauling
a barrel Of -four from Minneapolis
to Philadelphia was only "a cents,
with -four selling at about $1,000 per :
barrel. A 40 per cent increase il
Continued OF Po0e .Tt0o. !;