The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1920-04-16
FREIGHT LEAST
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-Transportation
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 is
a very small percentage of their total
cost to the consumer
Freight Cost "a Per Cent Of Total.
In a letter to Representative John J.
Esch. chairman of the House Commit
tee on Interstate and Foreign Com
merce. 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 S63 ton, while freight
charges advanced only 90 cents ton.
In i've years. he explains. the aver
age value OF freight carried by the
railroads increased from $50 10 $1l9 a
ton. The cost of carrying this increas-
Ell from 81 TO $3.50 paid 10 the rail-
roads. In 1914. he adds. $40 per cent
Of the total cost of the goods was
spent for transportation. In 1919 only
"a per cent was spent.
"In other words" Mr.. Kruttschnitt
writes. "only 80 cents ont of $63. or 13
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 $62 20,
or 9S.7 cents out of every dollar, must
be sought elsewhere. 1t was not caus-
eel 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 so low
cost as In the United States. Compar-
ed, too, with the cost Of other goods
and services today. railroad transporta-
tion is the cheapest thing the public
buys. II il sold for less than the cost
OF production. considering all the ele-
menis OF cost.
In statement on this subject 10 the
New England Bankers Association
Walker y. Hines. Director General of
Railroads. said:
II think IL Is n fair statement
that nj the present time. despite
the Increases which have taken
place in freight rates. ton OF
steel or ton Of coal. a 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 $50 IN retail shop. was ear.
ried from Chicago 10 Los Angeles for
1914 cents. The suit of clothes now
retalls az $50 or SG0 hut the freight
rate on that 2265 mile haul has in.
creased only "a cents. while the price
of the goods has gone up $50 or $50
The - cents does not cover all the
transportation cost in suit of clothes
the transportation charge for carrying
the wool from the ranges and the
cloth To the clothing manufacturer and
ether minor carrying costs enter into
the consideration. hut the final trans.
= ~ortation charge is the principal one.
!. and the other charges add only few
cents more.
New England shoes are shipped
from Boston 10 Florida at a cost of less
than S2-S cents pair. This is an in.
crease of only one cent over the pre-
war rate. The railroads also carry
beef from Chicago TO New York for !
charge OF about two-thirds of a cent
pound. Typewriters are carried from
New York 10 ST. Louis for 66 cents. A
$3.50 phonograph is carried by freight
from New York 10 Atlanta for $oS5.
A grand piano is carried clear across
the continent for $50 and in carload
lots for SIS.
These are typical freight rates. and
they make 1t plain that American rail.
roads give the lowest cost service in
the world
Even with q very considerable in
crease In rates 10 make the roads self
supporting. transportation will still he
the cheapest thing the public buys.
II