The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-08-20
BOOST IN FREIGHT
RATES NOT TOPUT
RETAIL PRICES UP
Railroads Show That Ad-
vanced Charges for Hauling
Necessities viii Not Mean
Hardship to Consumer.

contrary to the opinion Of a ma
Jority OF the people who believe that
me recent advance in freight rates,
granted to the railroads by the inter-
state commerce commission. will mean
a considerable advance in commodity
prices, the railroads hold that the item
OF transportation is a very small pro-
portion of total cost. The railroads
insist that the advance in freight rates
should not affect the retail price of
commodities upon which the retailer is
supposed to receive a large and alto
Gether sufficient profit to absorb the
additional cost of transportation.
IL has been pointed out that the rate
on shoes from Massachusetts points
to Memphis is equivalent to about five
cents pair. The new rate will make
the transportation charge for the same
pair Of shoes approximately six and
two-thrds cents.
Formerly the freight on five-oun
shirt from New York to Memphis was
about one-half cent. The new rate
makes the cost about two-thirds of a
cent. Formerly the freight on a suit
OF clothes from Chicago was less than
~ cents. The new rate will be about
IL or IA cents for the suit which for
merly sold for $50 and now can not be
purchased for less than $50.
Inc average increase in the rate on
fresh beef was less than one cent per
pound, and the new rate will be slight
~ more than one cent. Beef that for
ilnerly sold for 20 cents has been bring
ing 35 cents.
The average freight rate on sugar
has been one-half cent a pound. The
new rate will be less than three fourths
OF cent a pound.
The increase in freight for 24-pound
sack of flour will be less than four
cents in carload lots. In less than
carload Its the increase will be about
seven cents.
The average increase in freight for
eggs will be about one-half cent a
dozen in carload lots and in less than
carload lots Shipment will be two thirds
Of a cent. The freight on potatoes will
be increased from three cents to five
cents on the bushel or about one cent
a peck.
On packing house products, such as
bacon, LARD and canned meats in carload
lots after the advanced rates become
directive the increased charge will be
from one and sever-tenths mills to two
and four tenths mills pound.
Canned goods will pay an increase
in freight less than two mills for two
pound cans. Freight on coffee from
New Orleans will be increased less than
one-half a mill a pound and rice to
about one fifth of a mill a pound The
advance in milk rates will amount to
one-fourth of mill quart.
SailCo, SieellHBS ana BlHBndnS VIII
be increased a fraction over one mill
per yard for 1900 miles transportation.
With lumber that sells for $50 pei
1000 feet there will be an advance of
about 10 per cent in freight rates. This
does not mean, however, that building
costs will be increased in like proper
ton. Only about 80 to 40 per cent of
building costs represents material An
average increase of not over four per
cent 1t is claimed is ample to absorb
the freight advance.
Railroad operating expenses the last
year before government control were
$3.50, 100000. In 1919, although much
less business was handled, operating
expenses We're $4,420, 0OO.O 900. An Increase
of $1.560, 000,00 over 1917.
With the termination of federal con-
troll last spring the operating basis of
cost had risen Some 5000, 900, 900, max
ing a total increase in annual operat-
ing expenses upward of $1,700, 200, 900.
To this must now be added 1925 900, 900
of additional wages which makes the
new basis of operating expenses more
than $4,000 600, 900 in excess of 1917.