The Grangeville globe. [volume] (Grangeville, Idaho) 1907-1922, 1920-04-01
FREIGHT LEAST
H. CO., 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-Transportat
Cheapest Thing Public 8uys.
Charges on Some Articles.

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 10 transportation is not known
with statistical accuracy, it is estimat-
ed that the average transportation cost
of things produced in this country is
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
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 $63 a ton while freight
charges advanced only 60 cents ton.
In five years, he explains, the aver
age value of freight carried by the
railroads increased from $50 to S119 a
ton. The cost of carrying this increas-
ed from 81 to $780, paid to the rail-
roads. In 1914, he adds, SO per cert
of the total cost of the goods was
spent for transportation. In 1919 only
"a per cent was spent
I'm other words" Mr.. Kruttschnitt
writes, "only so cents out of $685. 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 S62 20
or 9S7 cents out'of every dollar. must
be sought elsewhere. 1t was not caus-
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 so 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. 1t is sold for less than the cost
of production, considering all the ele-
ments of cost
In statement on this subject to the
New England Bankers Association
Walker ID. Hines, Director General CT
Railroads, said
II think 1t is fair statement
that at 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 a retail shop. was car
ried from Chicago TO Los Angeles for
!. 1914 cents The suit of clothes now
retails at $50 or SEQ. but the freight
rate on that 2.265 mile haul has in
creased only So cents, while the price
of the goods has gone up 500 or $50
The % cents does not cover all the
. transportation cost in a suit of clothes,
: the transportation charge for CARRYING
q the wool from the ranges and the
p cloth to the clothing manufacturer and
II other minor carrying costs enter into
a the consideration, but the final trans
# portation charge is the principal one
l. ana the other charges add only a few
cents more
New England shoes are Skinned
"a from Boston to Florida at a cost of less
d than 52-3 cents pair. This is an In.
he 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 con,
e pound. Typewriters are carried from
he New York to st. Louis for 66 cents
RS 800 monograph is carried by fre,gb,
n from New York to Atlanta for 50 s5
grand piano Is carried clear scros,
Ip- the continent for 500 and In CARLOAD
nd lots for S2S
RS. These are typical freight rates. an,
as tney make 1t plain that American rail
OF roads give the lowest cost service /,
ret the world.
as Even with a very considerable In
OF crease In rates TO make the reads self
an supporting, transportation will still h
'he cheapest thing the public buys.