Arizona republican., 1921-06-01
Declares Depression Evi- dent In Cities Where Materials Are N o't Hauled By Railroads
Special to The Republican)

WASHlNGION, May 5l--ftDWafd Chambers, vice president of the Atchison, Topeka & Santa Fe rail- road. today before the senate inter state commerce committee declared that existing freight rates are not responsible for the present stagnation in the building industry. He also asserted that rates do not impose an undue burden upon road building op- erations, declaring. 't1n cities of the Pacific coast and throughout the west. south and east. conditions sur rounding the building industry ap- pear ta be about the same.
 Mir. Chambers said: "The general report Is that q comparatively small amount of building is being done in San Francisco. Seattle and Portland where lumber is at the door. Con- dftions are the same at Omaha, Chi cago, Kansas City or Cleveland. For example, Chicago has plants within it's city lines which produce all kind of structural iron and steel, likewise cement, brick, lime and gravel and crushed rock, and building conditions are no different in Chicago than in 4he other places mentioned
 taAn illustration of the relation of freight rates to building enterprises: A careful study recently made of ma- terials going into a typical brick house of six rooms and bath at Phil adelphia, with freight charges from the usual sources or supply mate rial. shows that the freight charges amount to approximately $370 on house costing $s,800 to build in 1920. "In St. Paul the estimated freight charges on all materials entering into the construction of a frame dwelling costing $5.oO0 or $6.000 would aggre- gate about $5S0."
 Taking ID the effect of the present rR4es on road building material, MT Chambers said that on the basis of t5300O the average cost of building one mile of concrete roadway in ac- cordance with the requirements or the Minnesota highway department, only $1, ,327 or ? 1z per cent represents the total cost of freight on the mate rials and the movement of grading materials to and from the job.
 Figures published by the North western Association of General Cont tractors. he said, showing that the cost of laying one course of con- crete pavement. using railway tracks for haulage. is $3.61 per square yart, of which only Is per cent represents freight costs Estimates made by tie highway commission of Pennsyiviaa- mia. he said, show that out of $oS,0Oo the total cost of building one mile of reinforced concrete road in that state $600O Or appro ximatery 10 per cent represents the freight charges. I'll can readily be seen" said MT. Cham bers. ssthat the freight rate is not ar undue proportion to the total cost ol the road"
 MT. Chambers said that these road: do not always pay freight charges Often the materials. except the ce- ment, are close to the work and ar' hauled by trucks. When the railToae is used the volume is usually large and is moved by rail close to thu work. The very conditions surround ing the operation compel the mini rnufn rates on most of the materials
 Statistics showing that the freight' have had no effect upon the move u;ent of iron ore and that after de ducting the present rail and watel rates from Lake Superior to Lak' Erie the producer has received a much higher price fer his ore thai in former years, were also read mt the record.
 In 1907. Mir. Chambers said, tn price at Lake Erie ports for Bes semer ore was $4.75 a ton, and non Bessemer $4 a ton. while the ral rates from the iron mines to Lax Superior was 80 cents and the wate rate to Lake Erie ports "a cents. I 1gf7. the price at Lake Erie ports 10 both grades of ore was $s-to an sss05 respectively. while the rail rat was from 55 to 631a cents and tn water rate s1. In 1920, the price 0 Eesserner ore was s7.20 and non Ressemer s655, while the rail rat was s1 and the water rate $l-l0-
 Mr. Chambers said: While ther bas been considerable complain ahnut increased passenger fares, th ;,crease has not seriously aIiecte messenger. travel. Undoubtedly th ,,screased fares have caused some le'
 s ;n travel. but reduction of fare
 ould not increase travel suftielentl 2 affset what would be lost by re
 .tion The falling off has been 2 { at In the short hauls as Tn th
 bauls. For example, in tn oe 100 miles coach travel tn nau, ,ase was only 50 cents whlch, r,;erpe insir did not seriously affect ora peue t,avel. During the last lol t,,s nay of 1920, when increased Iaft mon'ns effect the railroads carrie soo Ss5.s75 passengers whicn was on, . sss,,s. srease of s5e.7ss passengers 9x, i,, i,e l,la total during the correspoi"iii neriod of 191s-