Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1920-05-27
FREIGHT LEAST
H. C.l EXPENSE
director General Hines Says Rail-
road Transportation Costs
Are Lowest in History.
MOT CAUSE OF HIGH PRICES.
Freight Advances Compared With Ris.
IN value Of Goods-Transportat
Cheapest Thing Public Buys
Charges on Some ArticIss

Charges on Some ArticIss
Data compiled from authorItotIv.
sources shows that railroad freight
rates are the least factor I'm the cost
OF living Although the proportion NJ
the total COS, of Goods that can be
charged Ia Transportation is not known
with statistical accuracy, II is estimat-
ed That the average transportation cost
OF things produced in this country i.
very small percentage OF their totsl
cost to the consumer
Freight Cost "a Per Cent Of Total.
In letter 10 Representative John J.
ESch, chairman of the House Commit
Tee on Interstate and Foreign Com
merce Julius Kruttschnitt, Chairman
oil the Southern Pacific Company,
points out that I'm the Inst Ave wears
the value of goods increased OH nm sy.
"ragc Of S63 ton. while freight
charges advanced only 60 cents 81 tom
In five years, ne explains. the aver
age value OF freight carried nv the
railroads Increased from 500 tn Sl1ea
ton. The cost OF carrying this increa.-
ed from 50 to So 50. paid To the rail-
roads In 1914 he adds. 80 per cent
OF the total cost of the goods was
spent for transportation. In 1919 only
~ per cent was spent
I'm other words" Mr.. KruttschnItt
writes, "only 50 cents out of SOB. or is
cents out of every dollar OF increase in
value of commodities In 1919 was Cnu,-
d 10y increased freight charges The
responsibility for the remaining So 20
or 9S.I cents out Of every dollar. must
y" sought elsewhere. II was not caus-
ed by freight rates"
Rates Lowest In History.
comparison with TRANSFORMATION
charges in other countries shows that
In no other country Of the world In
transportation furnished at 40 low
cost as in the United States. Compnr-
ed, too, with the cost OF other goods
and services today. railroad tranSporta-
ton is the cheapest thing the public
buys. 1t is sold for less than the cost
or production, considering all the ele-
mcnts of cost
In statement on this subject To the
New England Bankers Association
Walker ID. Hines. Director General OF
Railroads, said:
81 think II Is fair statement
that at the present time, despite
the increases which have taken
tAla IL, ,fKI,
steel or ton Of coal, bushel Of
wheat or the unit OF any other
commodity has 10 pay for trans
pOrtation 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 n suit Of clothing
from one OF the Chicago factories, sell
Ing for $50 In a retail shop, was car
ried from Chicago to Los Angeles for
1871 cents. The suit OF clothes now
rctalls AT $50 or SEQ hut the freight
rate on that 2.265 mile haul has in
creased only 5ts cents. while the price
Of the goods has gone up $50 or $50
The 30 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
other minor carrying costs enter into
the consideration. but the final trans
pOrtatiOn charge IL 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 % 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 a
charge OF about twO-thirds Of cent
pound. TypewritcrS are carried from
New York to St Louis for 66 cents.
$50 monograph is carried by freight
from New York to Atlanta for 81 as
A grand piano is cNrricd clear across
the continent for $50 and in carload
lots for S2S
These are typical freight rates, and
they make It plain that American rail.
roads give the lowest cost service in
the world.
Even with very considerable in.
crease In rates TO make the roads self.
tt.an u,II ~.